Different stages of family life demand different financial changes. These aspects should not be overlooked as they can lead to a flawed retirement savings plan.
Undoubtedly, the most exciting time of life. Getting married, however, also requires you to significantly change your savings plans.
How much would you want to spend on your wedding?
Do you need a prenuptial agreement?
Such questions are bound to cloud your mind. Here are some pointers to help you make the right decision:
- Review and re-define financial goals and time frames
- Analyse income and spending patterns of you and your spouse
- Assess financial commitments and loans (if any)
Getting married is the beginning of a beautiful journey. Plan well so that it doesn’t dampen your financial goals.
Time to be a parent:
There is nothing more exciting than expecting a baby. Your family life is about to begin and you are all excited about it. At such times, money may be the last thing on your mind. Medical and lifestyle expenses could soar. However, you can plan and manage your finances effectively so that it doesn’t leave a big hole in your pocket.
Some points to ponder:
Have you considered the impact of the paternal/maternal leave on your job, in cases where it crosses the period of paid leaves?
Do you have a plan and have you budgeted yourself before having a family?
Becoming a parent is a huge responsibility. You are responsible not just for the baby but also for your retirement savings. Plan well in advance.
In recent years, the cost of education has increased primarily due to newer arms of education and the surge towards super-specialization. When it comes to your child’s education, you don’t want to be cutting corners; you want to give him/her the best.
Like retirement, education needs to be planned as early as possible. This can help you cover the costs without letting your other financial goals suffer.
Some points to ponder:
What will be the cost of education?
What types of financial instruments are available targeted towards saving for education?
The cost of running a family increases as the years go by. Your income might not go hand in hand with the increasing costs. Hence, a well analysed financial savings plan can help you take care of the financial needs of your family while saving for the golden years of your life.
Apart from the scenarios listed above, there can be many other minor changes in your family which can have a direct impact on your savings potential. When planning for retirement, family matters are of utmost importance. Every time you are faced with a planned or unplanned change in lifestyle at home, revisit your financial plan and make room for the change. Seek the assistance of a financial planner to help you develop a plan encompassing your needs; helping you towards financial independence post retirement.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully.