Sunday, February 18, 2018

4 Financial Plans You Need to Have down When Starting a Family

The decision to start a family is a big one, and whether the decision is a deliberate, well thought out one or a sudden one, there are some plans you should get into place. Families can be expensive, and planning ahead can help ease the burden. But, there’s no use in worrying, only in doing, so grab some of your favorite candy (with this cost cutting See's candy coupon, of course) and relax a little bit. 

It’s not as scary as it might seem. You just need some insider info and some diligence, and you can take control of your personal finances and save for the future. Here are some tips to help you reign in your finances. Here are four financial plans you should have in place when starting a family.

Maternity and Paternity Leave

You need to look at your state’s laws and company policy regarding leave for having a baby. Do you get time off? How much time? Is it paid or unpaid? Can you use vacation, sick time, or short-term disability to supplement the time off or the possibly lost income? 

This information is important to help you figure out your budget not only for the weeks after the baby’s arrival, but for the whole first year.

Start or Add to Your Emergency Fund

An emergency fund with no less than three to six months’ worth of expenses in it is critical to ensuring that your family can stay on financial track. If you don’t already have an emergency fund, now’s the time to start it. 

If you do have one, but don’t have enough, add to it now. Even if you already have three to six months in it, consider adding more. Babies can be expensive, and it’s better to be over-prepared than under.

Meet with a Bankruptcy Lawyer

After the baby arrives, you’ll have new expenses: child care, baby clothes, baby food, and more. You may want life insurance on your baby, or to increase your own. You may also want to look into disability insurance, start or add to your retirement fund, or start an education fund for your new addition. 

If you’re already in debt though, these plans can seem unreachable. Meeting with a bankruptcy lawyer can accomplish a couple of things. One, they can help you file for bankruptcy if that’s the right option for you. 

Second, depending on the types and amount of debt, they may be able to help you come up with a plan to pay off your debt without filing for bankruptcy that still puts you in a better financial position.

Write or Adjust Your Will

Once you have a child, everything changes. You’ll want to make sure that your child is cared for after your death, particularly if it happens sooner and more unexpectedly than you’d like. 

Making sure that your will is up to date to reflect your wishes regarding your child’s guardian(s), as well as how you want your estate distributed, will make things much easier on those left behind.

Starting a family is a beautiful time for most couples. A few easy financial tweaks can ensure that it remains a beautiful time, rather than becoming a stressful, worrying time.

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