FINANCIAL PLANNING FOR A WOULD-BE MOTHER - It Shall Save You From Last-minute Hush-Hush

FINANCIAL PLANNING FOR A WOULD-BE MOTHER It Shall Save You from Last-minute Hush-Hush Whether Women were conventionally left out of participating in financial matters or they didn’t soak in-this might call for discussion. Still, it is ‘Women’ whose life got severely affected because of this lack. It is imperative now for a Woman to take an active interest in her finances as in Emergency circumstances, she can always handle financial matters meticulously by herself. Women have no dearth of exposure to learning tools now. A goal-based financial blueprint regardless of Women’s marital and work status is the need of the day. A Contemporary Woman should take a lead in setting financial goals such as maternity, Children’s education, Retirement, etc along with the family. A family, when involves in setting ‘Financial Goals’, they become more compelling, stronger & more potential as it is an investment of ‘Emotions’ rather than ‘Money’. A Group responsibility comes into play & all members take precautionary measures to refrain from over-spending. This becomes a goal for the family & no the Woman alone. Women’s low involvement in the financial aspects and venture decisions has impacted them; having very restricted knowledge of the various investment avenues and the overall financial situation of the family. There being conscious of all the Investments, knowhow of all Documents, loans, etc., not only in their name but of the full family, is imperative.

Let us encourage ourselves to be a part of the finances of the family and take joint-responsibility towards the achievement of financial goals {Be Prepared For Emergency Breaks} Keeping 3 to 6 months of one’s monthly expenses in a Bank Saving Account is an ideal proposition. A spouse’s participation or involvement to maintain this is definitely a welcome move. ‘Emergency fund’ be maintained by every Woman to safeguard her. So, having auxiliary cash at hand for any emergency is a must. Building such a cache at any age is welcome. Let’s take a look at how you women can kick start your financial planning journey. {Understanding the Financial Landscape} Becoming a Parent is superbly exciting but it definitely needs, a prior ‘Financial Planning’. Very Few Couples put serious thought to this as they grade themselves-insufficiently equipped with needed funds. This fear surely adds up to the delay in achieving Parenthood. However, innumerable significant factors are playing a role in these delays, from Professional commitment to social & family commitments. Financial planning for Women can be broadly classified into three categories – 1. Protection Planning 2. Investment Planning 3. Retirement Planning We would highlight ‘Pre & Post Motherhood Protection planning’. Protection planning involves identifying the best Insurance Policies for you and your family. There are different types of Insurance that you must consider while creating a financial plan. The first and most important one is Health Insurance. Medical emergencies can be quite heavy on the pocket. Not having adequate health cover for yourself or your family members could lead to you having to scramble for funds in case of any unforeseen medical situation. Young Women, on the verge of motherhood, need to have a discussion over these financial issues with other family members. Actually this can save them from any future awkward situation. They need to adopt a straight-forward, transparent approach to keep it simple & Open-to-all-for-discussion. BUDGET planning shall be of immense help. {Expenses Hike after pregnancy} Raising a Child has become an expensive proposition. Reasons are definitely: hiked inflation, hefty fees & skyrocketed rates of all goods. Every Parent spends a hefty a Child’s education alone. On top of this, Women choose to take a break or leave the job & this is a ‘loss of income’. A readiness for staying with a single source of income, too, must be in place. But if a Woman is a ‘single mother’, she too, shall have some multiple sources of passive income, flowing in from deposits, Parents, Freelancing or part-time job.

{Essential Pre Motherhood Financial Planning Steps} 1. Note expenditure categories. 2. If need be, cut the unnecessary items from list. 3. Record all bills after you pay it & notice the escalation, if any. 4. Keep 4/5 Pots or small bags or envelopes where you can keep the money for all Regular expenditure. 5. Keep one envelop for ‘Savings’. This should have all money you intend to save. You should be enthusiastic enough to put all your gifted money or Interest received in cash. 6. Try paying the debt at the earliest possible; even try paying Principal amount instead of paying monthly EMI. {Maternity & Life Insurance} Prior to planning for a baby, the would-be mother should seek information from the Company’s HR Manager about ‘Maternity Leave’ benefits. Many Companies even provide Insurance to Pregnant Female employees. ‘Maternity Life Insurance’ is an essential insurance tool to escape any untoward critical situations. Even any other Insurance Policy can suffice. The child’s name included in the Policy along with the Husband’s name would reap it benefits in the future. Sometimes even Insurance too doesn’t come handy as medical expenditures have skyrocketed. At such juncture, Emergency Funds come handy. Prior research into Budget Medical care can save you a handsome sum. Any of the Family members shall take responsibility for Hospitals, Services available, package & Delivery specialist. There are certain insurance plans which cover the mother’s health, delivery & related expenditure-before & after delivery. These services [mother’s health) fall under ‘Maternity Benefit Act’. {Insurance for Parents} Most of the Companies pay to cover their employee’s health but that is insufficient. Once you are on a Family way, buying extra Private Medical Cover is beneficial. {Post Motherhood Financial Planning Steps} 1. Keep running SIPs howsoever small amount you might have. 2. Cut unnecessary expenditures. 3. Fore plan Child’s School, Crèche, Stationery, Tutoring expenditure & even Insurance Bills. 4. Start investing in SIP – Systematic Investment Planning. Before choosing any plan, study, compare & understand the SIPs available in the market, yourself. Approaching a Financial Planner might rescue you from any impending risk & fill the knowledge gap. 5.Keep aside some part of savings every month towards investing through SIPs & build a corpus. Welcome your partner, too, into making an honest contribution to this fund. 6. Similarly, one could also begin investing for one’s baby’s milestones such as higher education or marriage. 7. Keep reviewing new milestones as Parenthood could be excessively challenging yet very gratifying. email: Financial [email protected]