I'm still not sure what the economists call this, but it's a clearly a need for you to recognise that repositioning of your financial affairs might be in order.

Many people enter this situation as a matter of personal preference but the challenge is to determine how best one can reach the next stage without overly impacting the financial situation - in fact, you can come out much better off.

We're back to one (or one and a half) income(s), and two adult living costs, plus one or more children.

Beginning with little sleep, expensive childcare costs, and moving into educational costs (about one in three Australian children are in private schooling at say $10,000 per annum), how does one manage to keep up?

Often, families either never quite get back to the double income situation or only manage a part time income for the other person.

Certainly, and hopefully, the principal income earner continues to work well, and even better, if you've managed Stage 2 well you'll find the going in Stage 3 much easier.

It is very important to manage this lengthy stage well by maximising income and minimising all expenses, understanding that we all wish to do everything we can to help out the children.

Do you know that 5 year old birthday parties can cost between $500 - $1,000 - and it is doubtful that your child will even remember it! Things were a lot cheaper in my day!