SAVING TIPS

Catalin Voicu, a wealth manager for Takaud Savings and Pensions, offers his tips to avoid overspending in the early months of having a baby

Ask around: Most of us within our network have friends or colleagues with experience in parenting. Don’t be afraid to ask them about their experiences and learn from their mistakes.

A newborn shouldn’t be a fashion icon: Keep a happy baby in cosy, synthetic-free clothes. Don’t forget how fast they grow and how easy it is to waste your money on items they never end up wearing. Newborn clothes such as the all-in-one body suits often come in sets of three. As you won’t always find all the desired colours and patterns in one set, retailers know that it’s very likely you will then buy a second set of three. Don’t fall for that.

Set out a monthly family budget: While there are plenty of budgeting apps in the market, a simple Microsoft Excel sheet allows you to have a clear view of the income and expenditure, while you can easily forecast for the worst-case scenario, based on your spending behaviour. We know that starting in January, most goods and services will have a 5 per cent value added tax (VAT). To be on the safe side, forecast all monthly expenses for 2018 with a 8.15 per cent increase (inflation plus VAT). This new added cost will have to be taken out either from your savings, or your entertainment expenditure.

Don’t overspend on rent: Let’s face it – until six months, it’s unlikely your child will need their own room. There is no point moving to a bigger home with higher levels of running costs yet.