It’s exciting to welcome a new baby into your family, especially when it’s the first. The exhilarating joy you feel when those tiny fingers are clutching your hand. It makes you want to give that little one all the happiness. Among the sleepless nights, nappy changes, and financial planning for the future can be overwhelming. Therefore the best time to start financial planning is as soon as you learn you will be a father. If you are yet to begin, the next best time to start is now. 

The following suggestions will help you fulfill this responsibility.

Set a budget 

You must drastically adjust your budget. Your budget will have to change because you’ll need to add new items to your list of purchases each month by eliminating things that no more matter, like a gym membership that you don’t use; you can make room for these.

New budgets need to account for doctor visits, hospital expenses, baby essentials, medicines, caretaker expenses, and the increase in the cost of living. If your wife plans a more prolonged sabbatical, the household is shifting to a one-income family. You need to adjust income and expense gaps.

Health insurance

When you become a father, your responsibilities grow. It would be wise for you to reassess your insurance coverage and raise it to protect your entire family. Additional policies may be necessary or you may need to increase the value of the current policy.

Update nomination & beneficiaries 

Check your investments and assets to update your beneficiaries. This small detail is often overlooked and can create problems for your loved ones when the time comes.

Education Fund 

The gift of education is an everlasting and priceless asset you can give your child. Education is becoming more and more expensive as we go along. Now is the time to start an education fund. It will allow your child to do whatever they want when the time comes.

Emergency Fund 

Uncertainties are part of life; you need to prepare for them. If you have a child, an emergency fund is your safety net if the unexpected occurs. It will allow you to take a break if the situation demands without falling into a debt trap.

Re-visit your investments 

As your expenses increase, you’ll also need to increase your income. Diversify your portfolio to include investments spread across a mixed bag of risks.

Savings Account 

Children’s savings accounts have become standard practice in the past few years. By doing this, you can start putting money aside in your child’s name, and when they are older, you can have them inculcate the habit of saving, thus tackling two birds with one stone.

Neglecting yourself and your spouse

Little ones take over as the top priority. It’s easy to neglect your own goals. Don’t sacrifice one for the other. Asset Allocation is the key to wealth management. Include retirement planning and estate planning in your financial planning. You need the help of a financial advisor to develop a comprehensive financial roadmap. They typically have your best interests at heart. 

You may find all of this daunting, but don’t panic! Time is on your side, and you can make changes as needed. Priorities can change as your family grows. As you accomplish old milestones, new ones appear. Enjoy the journey.

Whether your dreams are big or small, it is never too late to start planning for your finances and building your wealth. We will help build the financial plan and investment strategy you need based on your goals.