The best time to start planning out your family’s finances is now. The earlier you start planning, the better. It would be an understatement to say that I wasn’t fully aware of family finance plans before. So it definitely would have helped if I got some advice at that stage.
There is so much that goes into raising a child - just think about it. In those initial years, you have to spend a whole lot on diapers, babywear, toys, etc. Soon enough, you’ll have to start paying for their school uniforms, education and what not. And then, you also find yourself worrying about what happens if you’re not around. Who will take care of them if something unfortunate should happen?
It makes you worry, as well as realise how important it is to plan your family’s finances. So, here, I am going to share a few finance tips that you should know before planning a family:
1. Plan How Much Money You Will Need
With a new baby in the house, our expenditure was high, especially in those initial months. Figure out how much you will have to spend on baby supplies, nursing supplies and health. Clear any pending dues. Plan well to give your little one everything they need.
2. Calculate The Money You Have
When my sister had a baby, she left her job to be a stay-at-home mom. It made sense for her since her husband was earning much more than her and was able to provide for the family. I, however, decided that I need to keep working. Our combined income is what ensures that we are able to lead a comfortable life. Similarly, you can decide for yourself if you want to keep working or if one of you should stay at home with your child.
3. Plan Your Future
Your retirement is one of the thoughts you need to have when you have a baby. As a parent who wants to do the most for their kids, you may continue working until your child starts earning their own money. Take this into account, and plan a comfortable retirement for yourself and your family.
4. Start saving up for your kid’s education
Your baby is going to grow up really fast. Today, you’re holding them in your arms for the first time, and tomorrow, they’ve grown up and are ready to pursue higher education. The very thought makes you emotional, doesn’t it? Secure them a good college fund. Save up and plan for the education that they desire.
5. Plan for your kid’s future
Now, you and your spouse can decide how to keep your child’s future secure with your income. As parents, you’ll probably want to leave your kids secure for the future, with a plan that can keep them taken care of in case you’re not around. This is where you need to consider insurance, which can take care of these precious lives in case they lose you.
6. Review your existing insurance policies
Your insurance should be a financial blanket for your kids if they lose you in an unfortunate event. You should cherish every moment with your kids. Also, consider that they need support at every step of their childhood, and plan financial coverage accordingly.
Insurance policies help you cherish every day with your kids while also knowing that if you are not able to, they will be taken care of. HDFC Life Insurance Plans provide financial coverage to your kids for a small premium payment, keeping them secure. Rest easy knowing that your little ones’ futures are safe.