The global economy today tells a gloomy story of shrinking profits and rising deficits. Losing in the economic game of blackjack can be unlucky, but not devastating if you’ve already played your cards right.

This week, we take a look at Speed Bumpers and offer some basic rules to help you start handling your personal finances in a conscious and balanced manner.

Who You Are: You have hit a recent speed bump, almost literally. You or your significant other is pregnant, a baby bump well on its way. You have a home or are planning on buying/moving in to a new home, and one or both of you work full-time.

Simple Cut Back: Enlist money saved from eating in, shopping light (maternity and baby clothes are allowed, of course), and slightly more affordable entertainment, and set it aside. Let the disposable income purchases take a back seat, and start thinking about investing in little car seats, nappies, prams, baby bottles, cots…

Money Maker: Make a list of all the material items in your life that no longer make much sense, and sell these for some extra cash. The two-seater automobile is no longer a practical option, nor is your motorcycle (no, not even if it has a sidecar). This does not mean your current lifestyle has to be completely obliterated, but rather, you should begin to prepare for the exceptional experience ahead as you embrace your new life with a child.

Planning: You will be trading in one particular lifestyle for a very different one, and substitution is what you can do to make the transition run smoothly. You could trade the gym membership for prenatal checkups and Lamaze classes. Alternatively, you could cancel the subscription to Vogue or Top Gear and subscribe to Parents instead. Turn to The Nest, a website packed with excellent advice for money woes in this particular stage of life. Its ‘Savings Calculator’, ‘Get Out of Debt Calculator’, and money know-how articles help overcome jittery nerves and make becoming a new parent appear less daunting. Seek advice from everyone from your parents to a financial advisor on tips for setting up long-term financial goals for your family.

Of course, all these financial tips mustn’t detract from the most important piece of advice of all: enjoy it, because this tiny miracle will turn your life inside out and upside down in the most wonderful way imaginable.

Image courtesy of Karindalziel