Baby carriages can be very expensive. That's just one of the eyebrow-raising realities facing Terri and Jean Emmanuel Fleuriot, parents of 4-month-old Jean Pierre. Married for just two years, the New Britain, Connecticut, couple is still in the process of learning how to best manage their joint finances. Add to the mix the expenses of a new baby, and it's time for them to take a step back and make sure they're on the right financial path. Fortunately, and to their credit, the couple has been disciplined about saving. Combined they have more than $30,000 in a cash cache. Terri says that she learned the financial facts of life from her mother, whose mantra included, "Keep your credit in order, don't cosign for other people, and save and invest money to acquire things like a house versus a bunch of clothes." Two more big pluses for the Fleuriots: They don't have any credit card debt, nor do they owe any money on their two cars. But often, with two steps forward people take at least one step back. In the Fleuriots' case, both Terri, 29, and Jean Emmanuel, 31, are still paying for graduate school. Both hold M.B.A.s from Bowie State University in Bowie, Maryland, where they first met. Together they have $50,000 outstanding in student loans. Between them, the Fleuriots earn $111,000. Terri works as an accountant for the insurance provider CIGNA, and Jean Emmanuel is a manager with the U.S. Postal Service. But even with a healthy income, they realize that wealth is measured by net worth and not by net income. In the final tally, the Fleuriots have a net worth of $389,000. The couple's biggest assets are their two homes. Their primary residence is in Connecticut; the other house is in Maryland, where Terri lived as a bachelorette. As a result, their household income is bolstered by another $12,000 a year in rental income. Looking ahead, there's a possibility that within the next three years the couple will relocate to the South. The move could put Terri out of a job but would enable her to spend more time with Jean Pierre, as well as focus on managing what the couple hopes will be a growing real estate portfolio. "Our goal is to have four rental properties," says Terri. BLACK ENTERPRISE had the Fleuriots consult with Michael Smith, a certified financial planner and president of ProFocus Inc. in Phoenix. He commends the couple for being disciplined savers. "They are very particular about spending and keep a pretty tight budget," he says. All told, Smith estimates that the Fleuriots have $27,000 in discretionary income--$15,000 from their salaries and $12,000 in rental income. "They can save about two grand a month," says Smith, "or $1,400, taking into account that they have a new expense--baby Jean Pierre." Their little guy is so young that the couple is still exploring their options for daycare. The Advice For the Fleuriots, Smith says it was important to tailor a financial plan that equips them to deal with major life changes--both in the short term and over the long haul. Smith suggests the following: Combine savings. The Fleuriots have adopted the concept of "yours, mine, and ours," and they maintain separate accounts in addition to a joint account. Terri has $10,000 in a savings account and $3,000 in a checking account; Jean Emmanuel has $10,000 in a savings account and $2,000 in a checking account. Even baby Jean Pierre has a savings account with a $1,000 balance. The couple has another $10,000 in a joint savings account. Smith says the Fleuriots need to add a level of sophistication to their money management and view saving and investing as one endeavor. He recommends that they open a joint brokerage account and pool their savings. Smith also suggests setting aside some funds in a money market account (equal to three to six months' worth of living expenses) and investing the rest of their money in no-load value mutual funds and dividend-paying stocks. Invest in value funds. Smith suggests the Fleuriots invest in value mutual funds. He recommends the foreign large-blend Vanguard Global Equity Fund (VHGEX), the mid-cap blend Third Avenue Value Fund (TAVFX), and the large-value Heartland Select Value Fund (HVFAX). "Doing so will give them a more balanced portfolio," says Smith. "It will also minimize volatility in accordance with their long-term objective, which is to own four investment properties in the next three years." Create an L.L.C. Smith says the couple should create a limited liability company to hold their present and future real estate. In addition to providing certain tax advantages, an L.L.C. would shelter their personal assets from potential lawsuits relating to their rental properties. Because Terri acquired the Maryland property prior to their marriage, it is currently solely in her name. Smith recommends that the couple place only the Maryland home in the L.L.C. and divide the percentage of ownership in a manner that Terri is comfortable with. Because there is significant equity in the home, the Fleuriots could apply for a line of credit, which they could use to help buy additional rental properties that would be held under the L.L.C. Open a Section 529 college savings plan. Smith suggests that the couple start saving for their son's education with an initial deposit of $1,000. Thereafter, they should contribute $100 or more a month. He recommends that the Fleuriots apply a portion of their rental income toward the 529 plan. Open a Roth IRA account. Terri and Jean Emmanuel each contribute 6% of their salary to their employers' 401(k). Because liquidity is important for them right now if they want to buy three investment properties in three years, Smith says they shouldn't worry about increasing their contributions--they'll each have another 30 or so years in the workforce. However, they should open a Roth IRA with the $2,000 contest winnings. Money in the account will grow tax free.