Month 1: More for less

As your pregnant tummy grows during this lean economy, get used to the words “down-scale” and “hand-me-downs” – they’ll get you through the tough times ahead.

Downscaling from disposable nappies to the good old-fashioned towelling kind or – even more drastic – selling your three-bedroom home to live in a squashy little box of a townhouse with your family of three, when you’re about to give birth… A large percentage of the global population is taking extreme measures to merely make ends meet during one of the biggest recessions ever. Typical middle-class, two-income families have had to do some radical downscaling due to job loss and the slowing down of the economy.

Now, imagine all this and that you’re pregnant: as the recession gives birth to a whole number of scarily bleak situations, so the impending birth of your child begins to make you panic. Actually, pregnancy is a time to take stock, so why not do this on a financial level too? At the same time, try to remain calm and focused on the little miracle growing inside you – your baby’s health and your well-being are even more important during these stressful times. Look for ways to escape your day-to-day financial worries by going for walks. Find a quiet place in your home, and take an hour off to read a good book, or tap into your creative side and take up a hobby such as pottery or painting. Don’t obsess over the negative – “I can’t afford to deck out my baby’s nursery” or “My baby won’t be getting everything it needs” – think of the positive: your baby will be loved and will love you back unconditionally. Surviving the recession while pregnant need not be such an awful experience: prepare yourself, take stock, cut back and hang in there. Most importantly, though, is to enjoy your pregnancy and look forward to the impending birth of your little one. It all goes by so fast, and you don’t want to look back at what should be a magical time of your life to realise that all you can remember are bad financial times.

MORE MONEY-SAVVY TIPS

Re-analyse your short term insurance cover to get competitive quotations. It will help you reduce the premium if you include household content cover with your vehicle cover.

When last did you check your bank statement? Do you have debit orders on your account, and you have no idea what they’re for? Get hold of the relevant information, and re-assess if these are still really necessary.

Take a look at your bank charges – are you paying more than R150 per month? If so, you can talk to your bank about their new packages to reduce these costs. You can stop the annual increases on your “investment only” policies in order to ensure they do not escalate further. This will reduce your budget short term – and later they can be changed again. Cut out your entertainment completely

– and keep the kids interested in activities at home, which will not incur costs.

It’s a great time to re-invent games for the family.

The nursery for the little one is expensive to kit out.

Throw a massive baby shower (with your required item list), and try to get as much as possible from friends. They don’t have to spend a fortune either – let them know that you’d be happy to accept all hand-me-downs.

WHAT NOT DO WHILE TRYING TO SURVIVE THE RECESSION

■ Don’t let your life, disability or dread disease insurance and medical policy premiums lapse due to bad money management, as these are critical at this time of your life.

■ Don’t cancel your investments completely without being properly advised on the implications of penalties. ■ Don’t change your bond term with your bank from a 20-year plan to a 30-year plan, just so that your monthly premium is reduced. The effect on long-term interest charged by the bank (and which you will pay monthly) will increase by more than 50 percent on the same loan.

■ Don’t incur any further debts, no matter how important you think it is. This includes taking a loan to settle other debts.

■ Don’t purchase large items such as property or vehicles if you are already concerned about your budget.

HOW TO RE-ORGANISE YOUR FINANCES IN THE EVENT OF RETRENCHMENT DURING PREGNANCY

Completely settle as many debts as possible (starting with your smallest) using your retrenchment package in order to reduce your monthly expenses. Transfer your company pension/ provident fund benefits (especially amounts over R50 000) to a preservation fund rather than cashing them in and paying the tax.

Depending on how desperate you are, see if you can trade your current car in on a cheaper (but still reliable) model to bring down your debt and payments. Ensure that you obtain new medical cover immediately if you belonged to your company’s scheme. ●