5 Financial Planning Tips for Second Time Parents
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Some parents go all the way out planning for the arrival of a second child at home. From tidying up the house and making it child-friendly, to buying dozens of clothes and toys, the preparation just doesn’t seem to end! Having a second child is a life-changing decision and there are only three things that can prepare you for the avalanche of expenses coming your way — planning, planning and more financial planning!
1. Start Early
Let’s face it, mothers are the one with more responsibilities when expecting (quite obviously!). Hence, she might decide to take a sabbatical and this means lesser monthly household income. The only way to tackle this and enjoy the pregnancy period and not worry about how you will pay the next doctor’s bill or set up the baby’s nursery is to start financial planning and saving much in advance.
Holidays become dearer with a second child at home. Four flight tickets to your holiday destination and booking two rooms in a hotel for around a week’s stay is bound to cost you a lot. Plan well in advance to benefit from the discounts in rates or put aside some money every month to save for your dream vacation.
Education is a major expense as school and college fees are skyrocketing. Gone are the days when you could manage your child’s school and college fees with your monthly income. You need to be well prepared in advance to be able to pay for them. There are a number of child education plans that you can choose from, which not only helps you build up a corpus, but is also insured. Start investing early to enjoy the benefits of compounding.
4. Don’t buy what you do not need
Postponing buying that luxury bike or that flat screen television for your room won’t seem to be such a bad idea when you see the smile on your child’s face when they are playing with the mobile toy over his crib in his new nursery that you built allowing him to have the best of everything a baby needs.
You may already have a term insurance for your family. Increase the premium of the term insurance when your family grows. A higher sum assured mean that you can be assured of your family’s needs in case of unexpected situations.
Find out about the best suited insurance plan for your family here!
Plan your finances as soon as you find out about bringing a second child into your home. Preparing well in advance means that you can budget your family requirements in a better way.
Now we know all of these decisions can be scary and you might not know where to start! Just head over to www.upwardly.in and use our Nobel winning algorithm to get the best-suited investment plans for you and your family.
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