Expecting a Baby, Paying Off a BTO… and Facing Retrenchment: How to Navigate This Financial Crossroad

For many couples in their 30s, life is supposed to be a season of building. You’re preparing to welcome a new baby, paying off your BTO, or finally starting to feel stable in your careers. But what happens when retrenchment strikes just as these big responsibilities pile up?

It’s not a scenario anyone hopes for, but it’s one that has become more real in today’s uncertain job market. The good news: while you can’t control retrenchment, you can take concrete steps to soften the blow and protect your family’s future.

1. Stabilise Cash Flow Immediately

When income is disrupted, focus first on your most essential expenses: housing, food, healthcare. Revisit your monthly budget and trim anything non-essential - subscriptions, luxury spending, or “nice-to-have” baby items.

💡 Tip: Create a bare-bones budget (just the essentials) to know exactly how much you need to survive each month. This gives clarity on how long your savings can last.

2. Prepare for a New Baby on a Budget

Raising a child is expensive, but you don’t need to buy everything at once - or buy it brand new.

• Prioritise needs over wants: Focus on essentials like a safe cot, stroller, and basic clothes. Skip the fancy gadgets unless you truly need them.

  
  

• Buy pre-loved: Many parents sell baby items in excellent condition. Platforms like Carousell and parenting groups can save you hundreds.

  
  

• Tap your network: Friends and family whose children have outgrown their items are often more than happy to pass them along - sometimes free of charge. This can be win-win as they may also be looking to declutter and free up space.

  
  

• Stagger purchases: Not every item is needed immediately. For example, a high chair can wait until your child is ready for solids.

💡 Tip: Make a baby essentials checklist ranked by urgency. This keeps you from overspending in the emotional rush of preparing for your child.

3. Prioritise Insurance Coverage

With a baby on the way, it’s tempting to cut back on insurance to save money. Resist that urge. Critical policies (hospitalisation, term life) ensure your family doesn’t face an even bigger crisis if illness strikes.

💡 Tip: If cash is tight, review your coverage with an adviser - you may be able to resize policies temporarily rather than cancelling them.

4. Talk to Your Lenders Early

If retrenchment threatens your ability to pay for your BTO or loans, don’t wait until you miss payments. Contact HDB, your bank, or your credit provider to explore repayment deferments or restructuring options.

💡 Tip: HDB offers options for couples facing job loss - but only if you flag it early.

5. Explore Flexible Income Streams

Retrenchment doesn’t mean zero income. Many couples turn to side hustles or freelance work for stability:

• Freelance in your professional field (e.g., marketing, design, IT).

• Start small service-based gigs (tutoring, delivery, online reselling).

• Leverage family support so one parent can take on flexible work while caring for the baby.

Retrenchment during such a critical life stage can feel devastating, but it doesn’t have to derail your entire future. By stabilising your cash flow, budgeting smartly for your baby, protecting essential insurance, and exploring new income options, you can stay resilient through uncertainty.

At WealthDex, we believe financial planning isn’t about predicting the future - it’s about preparing for the unexpected. If you’d like to review your family’s safety net and options, our consultants are here to walk this journey with you.