13014 Howto ready your finances fra child The Times of nda THE TIMES OF INDIA. How to ready your finances for a child sosaMst 15 Sakina Babieani rsh. ‘One ofthe hapiest momeots or any couple isthe rival of child Whi reveling in thejoy ofthe newborn baby, many forget the mpac ti event wl have on tic nences Apart rom asin the dy oy expenses {on various tems ike ood and cates coupes neato factor in higher ash auto inthe form of doetor fees, vacsnatios, andthe ke. The ‘ving ly col renin maja bt Hentplatons arian ding ary which rg te mater ergo operation Marsorer, the monthly inflow of cash can be ateted ithe maher quits work after having the baby. Therefore, ts of paRSBBEEERE ance hat coupes pan Ahir fnances carefully before planning fr a baby. seemena Onn [Before the baby comes Feecmeeoy Every couple must make some preparations before the child is bor. If the wife has been working, the fi} WAR! do would be to get ready to survive on a single income. Tf the mother takes a break from her jb after the baby is born, then the famtuualdbetdspendent only on the father's income, the result of which would be inereased expenses on & pared salary. seo anaseiwee Retirement Homes To Rent Stes Find the right property for your retirement. Quality homes torent nvest in care ‘wowanchor.org.uk Canadian Work Visas ‘The World's Leading Experts Apply Now to Emigrate Today! Hamza oun fnpvisas.com/Canada, Visas esau St isimportant totes yours fora few months before planning the baby to make sre you are not cash-strapped afer the és ith, "Ty Iwi sty on one income fora few months” sugges naneal planner Charl Shs of Grea Weakh Advisors One ayocs income canbe invested ina sweapin fed depot short-term debt fund. This exeris has wo advanagen Fay, you wil be able to check i'you can actually survive ona sgl income and secondly it wil op eet cons that con be ued to del withthe expenes elated othe dle ‘you are notable to manage your expenses with a single income, in all probability, you are not ready to havea baby or need to cut down on frivolous expenses, such as outings, movies, te Ldeally, you should not only be able to manage your expenses, but also have a surplus every ‘month. This is because your monthly expense will naturally ris after the baby is born Find out about maternity benefits “The next step you need to take isto figure out the maternity benefits that your employer offers. As por the Maternity Benefit Ac, any woman who das been working with an organisation for atleast 80 days during the 12 months preceding the date of her expected delivery is eligible for a paid maternity breck of 12 weeks, either before or after delivery. However, se cannot take it for more than si weeks before her expected delivery. You cen check with your human resources department ifyou can cub your pending sick lave or other paid leave along with the maternity break. ‘Some companies also offer women unpaid sabbatical from work after the btth of the chil. This works well if you plan to resume work ater a slightly extended maternity break. Understand the company’s leave and matemiyy break policy before you goon leave. Violating the company’s leave policy can cost you heavily. You may lose your jab or even end up owing the company money. This can be fnanctlly disastrous forthe couirata ewe Ge epenet testy [raeronneies | ‘Managing expenses ‘You may find those baby shoes you saw atthe store irresistible, butt is best to avoid buying them as your baby is likely to outgrow them in afew ‘weeks, Couples tend to spend alot of money on items lke baby clothes, shoes, toys and cribs. However such expenditures mostly a waste asits of Title use to babies wino grow very fast. Typically, baby clothes and accessories ate expensive, sometimes more than those for adults. A wiser ‘approach would be to ask relatives or close friends to pass on used clothes, This would help you rediret the money to more important and useful items fr the baby, suchas food ane diapers. Also, avoid buying expensive toys for your newborn. Keep in mind that your child will not remember the stylish clothes you made him wear when ‘he was three months old, but buying good quality baby food will certainly ensure thet your child remains healthy. Get life and health insurance When a5-year-old Parameswar Biowal was expecting his fst child with wife Itishre, the st thing he did was to take aterm plan ofa erore am the sole earning member, I had to ensure that my wife and baby were protected against unforesoen calamities," says the Doli resident. Like the Biswals, every expectant couple must ensure that they adequately protect themselves. Ifyou already have a if caver, you may need to enhance i. Check with your insurer iit allows you to increase the existing cover. Ifyou have na insurance at all, make sure you buy one ‘immediatly. Apart from the life cover, you also need to have suficent health insurance in place since a newborn is susceptible to disease. You can buy a family foster plan and include the child itor also buy an individual plan for the child Biswal went a step ahead while buying insurance plans He also bought a 15 lakh cover for preservation of stem cells. 1f the cells are destroyed before his son atains 21 years of age, he will get 10 lakh as well as 5 lakh for any treatment that is required. "Asa doctor, I understand the htp:timesofinia indiatimes comfbusiness/nee-business/Movto-ready you finances-or-a-ctildfprartcleshow 32954671. erpage=1 1813014 Howto ready your finances fra child The Times of nda ‘importance of stem cells. Therefore, I have taken insurance for their preservation as well,” he says Formulate an investment strategy Reising a child is nota cakewalk and the cost involved can be tremendous for a mile class couple, Hven an elementary college graduation and taking care ofa chiki’ basi facilities ike food and transportation can costa couple close to $0 lakh after accounting for inflation. If your ei is reaming ofa professional degree like engineering or medicine or plans to go abrosé for higher studies, then the cost can skyrocket. To take care of such long-term expenses, you should start planning from the day the child is bora, In fat, many young couples start planning even before the child is bore tart by devising a long-term strategy keeping in mind the child's future goals. You do not need to stat investing massive amounts immediately. ‘You can start with a small amount, and as you near the goal, you can inerease your investments gradually. For instance, if you want to build an ecucation find of 50 lath after a period of 20 yeas forthe child, a monthiy amount of 5,054 wil sufice, given that tis invested in an equity instrument that wil yeld 12% annually. Fyou can't invest 5,000 immediately, you ean start with 2,000 and increase the amount inthe coming years Make sure you define your goals clearly and earmark investments for them as this gives you a clear base to build on. Once you have a clear idea of how much you neod for each goal and the time perio at hand, you ean zero in on the appropriate investment products, Ldally, the product you ‘choose should depend on four factors: tenure of the investment, the rk you are willing to take, the returns offered by the option, and the taxabilty “Typically, fora long-term goal, that, goal that is more than 10 years away, equity is the best option Since the goal is several years away, it allows you to take ris,” says Sumeet Vaid, founder and CEO of financial planning firm, Firedom Financial Planners If, however, you are not ‘sure about investing in dizect equity, you ean opt for mutual funds. Take the help ofa financial planner who can assist you in assessing your risk profile and choosing the right investment stratepy. 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