If you are an expectant parent, then you know that your life will never be the same again and neither will your finances. Expenses begin to arise right from the time you conceive, they increase multi folds once the baby is born. Hence it is imperative that a plan should be put to motion regarding your finances right from the beginning of your term.
Check out the maternity & paternity leave policy of your organization. Do the math and see how the unpaid leaves will be affecting your monthly budget.
Medical/Life insurance helps. Check your policy to see if you can afford an increase in the payout amount and cover the soon-to-arrive baby. Â If you do not have insurance, then it is advisable to get one.
Plan a monthly budget with options of savings; it is of utmost importance to stick to the budget planned.
Reduce credit card debt. Large debts affect loan getting abilities. One option is transferring the debt to a card with lower interest rate. Once done, try to charge it as less as possible till the previous balance is paid off.
You should start saving especially for baby gears, child care and other post pregnancy expenses that are bound to occur. It is fitting that an emergency fund must be in place in your savings list as you never know when emergency strikes.
Add nominees to your existing investments; it may be your partner, parents or relatives. Even though it sounds grim, make a will. In case of your or your partnerâ€™s pre-mature demise, who can step in to be your childâ€™s guardian? This is to ensure that even if you are gone, your child is well taken care of both emotionally and financially.
- January 20, 2016
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