With the birth of your baby girl, it is also essential that you plan for her secured and financially stable future. The earlier you start better returns you get. Therefore considering all the plans and schemes and investing in the right ones, way before the birth of your baby would be a smart move. It will promise a better life for your baby girl, as you will be able to provide adequate resources for her well-being. Check out these few tips on how you can financially secure future of your bundle of joy.
Create A Will
Financial Advisors suggest creating a will even if the idea makes you feel queasy. A will is not for parents but their kids. When making will list down physical assets, financial assets, people who you may feel like including and trustworthy executors who will distribute your property. You should also mention the current holders of the above assets.
Pay Off The Mortgages
A mortgage is a bad debt as it comes with interests and is non-tax deductible in nature. Hence, reducing mortgage takes off a huge financial burden from your shoulders.
Paying off the mortgages sooner will make you able to aid your children in settling down in their life and ensure their security. You may also help your children by funding university degrees, supporting during financial crunches and taking up cost of weddings, and other significant events. Also, maintaining your mortgage at low levels with redraw facility promises free flow f cash for the future. Redraw facility is much more cost-effective when compared with other credit sources.
Think About Life Insurance
Life insurance is the most avoided topic when it comes to financial planning. Addressing contingencies and staying prepared for them can give us the feeling of being in control and provide us with peace of mind. Revising your life insurance plans before getting married, having children, changing jobs, buying the property, or taking up debt is recommended by financial experts.
Learn The Art Of Budgetting
Sticking with financial budget cuts off unnecessary expenses. For budgeting, note your expenses and establish a realistic budget. Automate regular savings and direct debits. Check your dairy weekly to keep track of your finances and recognize your progress. As you instill the habit of budgeting in your lifestyle, you will encounter gradual improvement in your finances.
Financing The Education
Every parent dreams of giving children the best education possible. But financial advisors suggest splurging on education only if their household finances have steady footing along with emergency funds. To save for your child’s education, you should maintain mortgages close to zero to use redraw facility when the need arises. Avoid specially formulated educational saving plans and schemes as they come with relatively higher fees which are included in them.
Every bread-winner should consider having income protection insurance after having a child. If you have spouse or children who are solely dependent on you, then, income protection will protect your family financially in stressful and demanding times.