A Millennial Dad? 5 Tips To Be Financially Savvy To make financial planning a little easy and stress free for all millennial dads, here is a go-to-guide that will ensure your investments build a bright future for your young ones
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Parenthood comes with its own set of challenges and the pandemic has augmented stress levels of young parents, rejigging priorities when it comes to their children. It has catapulted the importance of budgeting, saving, investing and managing debt, in a way to support themselves and their families. To make financial planning a little easy and stress free for all millennial dads, here is a go-to-guide that will ensure your investments build a bright future for your young ones.
Map your savings
Due to these unprecedented times, many households are witnessing reduced incomes or potential job losses that has made supporting their dreams for children a distant one for parents. However, there is always a light at the end of the tunnel, and we must always look to a bright future. There is no better time than now to build a strong savings plan that factors in unexpected expenses/medical emergencies. While creating this, it is essential to consider all necessary expenses such as food, groceries, utilities, rent, EMIs and any other fixed costs that are incurred regularly while planning for a rainy day.
Build an adequate corpus for your child's education
In this day and age, the best gift that you can give your child is a strong and secured future. With the cost of education escalating with each passing day, it is crucial to invest in a savings plans that will offer enough funds to meet a host of expenses at key educational milestones in your child's life. Consider investing in a child plan that also offers the benefit of an insurance cover, in addition to an investment option for creating a corpus for your child's education.
Invest in a life insurance policy that gives adequate financial security
As per a study conducted in urban part of India, Tier 1 cities witnessed sharp rise in awareness of life insurance products, as well as ownership that stands at 66 per cent. Investing in a life insurance plan is an important step towards being financially prepared to manage your savings and investments for the future. While choosing a life insurance policy, ensure you opt for sum assured that gives you and your family guaranteed protection. The key to choosing optimum sum assured is primarily undertaking proper research, considering you age, income, inflation, lifestyle and medical history, etc.
Look for investment plans
It is always advisable to look for long-term investment plans that give good returns and securities. One must be aware of all terms and conditions for such investment plans and financial instruments that allow easy withdrawal of funds for fulfilling your child's future needs.
Remember to keep your retirement plans on track
It's easy for your personal goals and long-term plans to fall off-track in the midst of securing your child's financial future, therefore, it is important to stay on top of your retirement plans so that you are financially independent in your old age. With rising life expectancy and growing costs of living, it has become prudent to plan for one's retirement and a steady flow of incomes is one key aspect that everyone desires at this stage in their live.