This is a rather informative post here in my blog. I believe that the direct audience of my blog are women in their 20’s who are just starting their career. But, i also havfe a gut feel that there are those who view financial blogs who are starting their family life and making researches on how to budget effectively. Anyways, this post is dedicated to parents out there or soon-to-be parents.
As you know i am a wedding coordinator so i actually talk a lot to couples and i find out that some have lesser knowledge in what to expect ones they start the family life financially. For me, prevention is better than cure so it is as always a good thing to start early and be ready to anything.
1st Tip is to Build an Emergency Fund
- Well, it’s actually a tip for everyone. Having an emergency fund will assure that there will be enough money that the family can use in case emergency situation happens. Unwanted accident, sickness or if and then one of the parents will suddenly lost his or her job. Emergency Fund should be about 6-months of the monthly expenses of the couple.You can easily start this by putting the money you receive from the wedding or the traditional money dance in the program. A lot of my couples do that because and i recommend it too because it will truly help in the financial security of the couple.
2nd Tip is to Save for the Future Kid’s Education
- You can either buy an educational plan which is quiet risky or you can have another savings account where you will invest money monthly. I suggest to invest this in stock market so it can yield a lot of interest once the baby will be entering college. The good side about this is that when the time your kid or kids will study in high school upto college, you will rest assured that there will be enough sources of money. You can then invest to other paper assets of properties the money that you save.
3rd Tip is to have a Fun Fund as a Couple
- Of course not because you now have the kids does that mean you and your hubby should limit yourselves at home. Save an amount for out of town travels or simple dinner and movie nights. This will strengthen the relationship and keep the focus of love in the family. Having fun as a couple should always be present at all times.