You should be financially prepared to deal with any situation before the baby arrives. It is better to start from the day you hear the good news.
Becoming a parent is a joy that is unmatched. It is exciting to hold your baby in your arms, but at the same time, there are financial responsibilities, which come along with. It is best to be prepared financially to deal with any situation before the baby arrives. You should start from the day you hear the good news.
If you are going to become a parent soon, then follow the listed money moves here.
Make A Pre-Baby Budget: There is no better way than to start planning in advance. So do make a pre-baby budget listing out the expenses– medical check-ups, hospitalisation, doctor visits etc. You may have to cut down on few luxuries or a holiday to stock adequate liquidity for the pre and post pregnancy period. This planning also becomes vital for you to arrange for resources just in case you fear of falling a bit short.
Get A Health Plan: Besides creating a fund in advance, what’s extremely essential is to buy a health plan to cover these expenses. This provides the cushion to cover these expenses. The Health Plan should cover not only the medical needs of the mother but also the newborn. Post-delivery, there might be extra medical needs and one has to be financially covered for it. In case you and family are already covered by a health plan, do add your newborn into the plan as soon as possible.
Create a contingency fund: Remember, grandma used to say, “Do put aside some money for an emergency”. It still holds relevance. What’s extremely essential is to have a contingency fund for parenthood. If you have been a working woman then you may have to extend your paid maternity leaves into a non-paid one. If you are a soon-to-be father, you may have more expenses coming up your way. So save well in advance by investing in short-term debt funds or liquid funds and withdraw as per your needs.
Take A Life Insurance Policy: Usually, when you are single or have just entered a matrimonial relationship, you tend to avoid a Life Insurance policy. But when you get a dependent then you need to invest in a plan that will take care of your family in case of any unfortunate eventuality. Hence, getting a life insurance is a must that provides cover in case an unforeseen eventuality.
Take care of the child’s future: Cost of education increasing manifold, it has become more challenging for a middle-income group family to provide quality education to their children. It is a must, therefore, to start saving for your child’s education or marriage as early as possible. You can set aside some money every month for your child’s future even though he or she is yet to arrive. This money can then be invested in a SIP or a child’s plan that will secure the child’s future.
If you are a soon-to-be parent, you must make your financial moves cautiously to secure your family and child’s future.