Parenthood is the most beautiful experience in the world only if you plan your finances in a well-manageable way. While, if you fail to plan your finances before having kids, there is a likely possibility that you might get frustrated with the new expenses attached with new-born one. This financial burden may dominate your happiness of being a parent and engulfed you with tension of meeting the basic necessities. So, parenthood is not just about tiny clothes, warm hug and heart-warming pictures of ultrasound, but it is more then that. It is about ready to take up new responsibility, able to meet the new growing expenses and a sense of fulfilment of lives depending on you. In this realm, financial planning is the key.
Here are the key tips to plan your finances before having kids, let’s have a look on those tips to save yourself from the hassle and enjoy every moment with your new-born without tension.
A Sound Career
Children are the blessings no doubt, but raising children is not an easy job in todays scenario. This blessing comes with a hefty price not only in terms of up-bringing but also in terms of financial responsibility as well. To fulfill this responsibility, you need a stable and a sound career. The regular and growing payment schedule from a source whom you rely for meeting your financial needs.
Think about career paths that you can continue even after having a baby, that can show positive trend in your income and cover your childcare expenses. That can pay you even if you are own your maternal/paternal leaves. A type of the job that has decent sick leave policy so that if you are taking off for your ill-child that doesn’t mean you are out of a day’s pay.
Make a Budget & Track Your Spending
It is advisable that you make a budget and track your spending. If the budget you make doesn’t align with your real time expense, do not give up on making budget. However, try until your expenses fall in your budgeted expenses. This will allow you to cater the important needs and over throw the luxurious one. Further, it also enhances your focus towards the one who needs more attention.
Additional Reading: Should You Plan to Save or Invest Money in 2018
Enough Cash Reserve
If you are planning to have a baby or expecting one it is advisable that you put aside some cash in reserve to meet unplanned expenses which is obvious in case of kids. On a lighter note, having kids means that you are ready for the adventure, and that adventure at times cost you hefty amount. Because, kids love to play in their own space and you cannot cut their roaming and fun-loving space. If this thing is there then you must be ready for the possible risks, they might hurt themselves, get sick or any other potential threat. In such scenario, the cash reserve comes handy to save you from the financial burden. Even if your other better half is staying at home with the new-born, you still need at least 6-7 months extra living expense to cater their needs on the safe side.
Save for His/her College
With the passage of time the basic needs will get expensive adding the inflation rate, with them the education will also get expensive. To meet the future needs, it is advisable that you start saving for your child education from today. The very moment you plan to have a baby. That’s the wisest move on the part of any person as it will save him and his children of the future worry and give him time to enjoy the family moments. Another good idea is to save money by opening a saving bank account. You can use the link below to compare all the savings bank accounts being offered by leading banks in Pakistan.
Contribute Towards Your Retirement
Today you are young and energetic, ready to take on lead in your life. You can cover miles but planning your finances during this journey will save you from potential risk that can create a big hole in your pocket. It is advisable that you do save something for your after-retirement life. This will not only help you in your life but also ease up the burden on your kids. Who have to take up your responsibility in your older age. It leaves both of you tension free.
In a nutshell, parenthood can be made more enjoyable if you plan your expense in a suitable way before having kids. Visit Mawazna.com today to plan your savings and investments in an efficient way and help you in enjoying your family moments care free.
“Mawazna Karein Apne Liye, Apno key Liye”