Congratulations on becoming a new parent! Becoming a parent is the most life-changing event that you might ever experience in your life. And our heart goes out to the parents like you who strive to put in all sorts of pains to ensure that their baby feels loved and special. The feeling of becoming a parent is indeed ineffable.
Getting ready for this new, exciting, perhaps even scary journey requires abundance of financial planning, so that finances doesn’t become a stress for you or your family. This article will help you with a financial plan to fully prepare you for the upcoming responsibility. Here’s a short financial checklist that might come handy to welcome your new child:
1. Increase your savings
Even though it might seem quite simple, it is the primary step towards building your child’s future and ensuring that their financial future is secured and safe. You are bound to experience increased expenses sooner or later. It would be a smart move to upsurge your savings as soon as possible.
Investing in mutual funds is an amazing way to cater to your future financial needs. Experts also recommend boosting your emergency savings. Understand the importance of savings and evaluate your investment options sensibly.
2. Plan for greater expenses such as healthcare
Thanks to the pandemic, the healthcare expenses would be on the higher side now. Hence, adding your kid to the family healthcare plan is quite vital. Also, do not forget to assign a part of your savings to healthcare expenditures regularly. Choose from the various types of investments available to an investor.
Evaluate the one that best suits your financial needs. Taking care of a child entails additional expenses, and unless you plan it quickly, the expenses are bound to mount. Try to make the best of the time available in your hands now.
3. Start an SIP in a liquid fund
If your savings allow, consider getting a head start on your child’s schooling expenses. This will avoid a burden on your income in the future and help avoid hefty lumpsum payments. Instead, start a Systematic Investment Plan, commonly known as SIP.
SIP is merely a mode to invest in mutual funds. There are various types of mutual funds to choose from. As you would be requiring the funds soon, consider investing in liquid or debt mutual funds.
4. Start planning for your child’s college fund
Have a smart portfolio of good performing equity mutual funds for your child’s higher education. College fees can be expensive and troubling. When you start early, you have the freedom for a significantly lower SIP commitment. Given that you have ample time for your child’s college education, you can plan your finances better.
You can also choose to invest in mutual funds online at the comfort of your home. Mutual fund investments are a great way to fulfill your future financial needs, whether short-term or long-term. Happy investing!