Congratulations on becoming a new parent. Welcoming a newborn is a graceful act, and our heart goes out to these parents, who put in all sorts of efforts to make their child feel loved and special. The feeling of becoming a parent is just indescribable.
You would also be feeling the immense weight of responsibility as it is probably the biggest one in your life so far. By taking some small but essential steps, you can at least ensure that the financial aspects of this responsibility are taken care with care. Here’s a short financial list that would be helpful for all new parents to follow:
- Increase your savings
Even though it seems quite simple, it’s the first crucial step towards creating your child’s future and ensuring that it is safe and secure. You are going to witness increased expenses sooner or later. It would be a smart move to increase your savings right now Investing in mutual funds is a great way to cater to your future financial needs. It would also be a good idea to boost your emergency savings. Understand the importance and difference between saving vs investing and consider your investment options
- Plan for bigger expenses like healthcare
Healthcareexpenditures would be on the higher side now and therefore adding your kid to the family healthcare plan is crucial. Also, don’t forget to allocate a part of your savings regularly for healthcare expenses. There are various types of investments and mutual fund option available to users. Evaluate the one that best suits your needs.Taking care of an infant requires additional expenses, and unless you plan it soon,the expenses are bound to mount. Make the best use of the time available in your hands right now.
- Start an SIP in a liquid fund to cover the educational costs of your child
If your savings allow, get a head start on your child’s education expenses. This will help you in the future, avoiding a burden on your income that might involve hefty lumpsum payments. Instead, start an SIP or Systematic Investment Plan. SIP is a way to invest in mutual funds. There are various types of mutual funds to choose from. However, since you would be needing the funds shortly, consider investing in debt mutual funds or liquid funds.
- Start planning for your child’s college fund
Have a smart portfolio of good equity mutual funds for your child’s higher education. College fees can be costly and burdening. When you start early, you have the liberty for a lower SIP commitment, and therefore your income will not face a blow. Given that you have ample time for your child’s college education, you can plan better.
You can invest in mutual funds online at the comfort of your own, enhancing your investment experience. Mutual fund investments are a great way to fulfil your needs, whether short-term or long-term. Happy investing!