As a parent, the best day of your life was the day you finally held your baby in your arms for the first time. We try to take the best care of them by being very careful and as healthy as we can during pregnancy. The first thing we consider while gearing up to have a baby is our physical health as it directly impacts our baby. What we should also pay attention to, is our financial health. It’s very important to consider that having a baby can be life-changing in more ways than we realise - the increased expenses are one of these changes and it is always best to be prepared for them beforehand.
Financial planning before you have a baby may overwhelm you, but there are simpler ways to go about it. We have a simple guide to planning your finances before you have a baby.
It is always best to know what resources you have at hand - take account of your income, expenses, savings, pending loans or any other money matters, so that you can know where you stand financially. Look at your other assets too - your house for example - if it is in need of repairs or modifications, it is best to get them done before the baby is here, so that your expenses can be spaced out rather than all at once.
Take note of your income and run it against the costs you will have when the baby arrives. Since you are going to be supporting the baby with your income, you should consider whether you can run the house on a single income, and whether you have any fall-back assets that can help you during this period. Anticipation and planning is key!
Calculate All Your Expenses
Before planning a baby, you need to spend some time considering all the costs that come with having a baby - from pregnancy care, to delivery, health costs and recurring costs for clothes and diapers, everything should be taken into account. This enables you to save and allocate your budget accordingly.
Think about the future and start saving up - you’re going to need it for school fees, higher education, health, and your own retirement. You can do this by trying to live on a budget for a few days - it will help you track your spending patterns and save better in the future. You should also include some calculation on inflation and how the expenses would change along with that.
Your savings can accumulate interest and become a treasure chest for your child, fuelling his dreams and ensuring a secure future. Investing smartly can help you create wealth for your own and your child’s future. For example, HDFC Life’s Click 2 Invest – ULIP helps you earn a regular annual income after premium payment, giving you financial coverage for over a decade and helping you save for your family’s goals. Making a disciplined saving and investment plan will help you create wealth like this to support your loved ones’ future. So you and your loved ones can enjoy your present while being prepared for the future.