The moment you learn that you are expecting a child, you are over the moon, followed by anticipation, excitement and nervousness. Your preparations for the arrival of your baby start right away, the theme of the nursery, outfit, accessories, list of possible names, selection of the doctor and hospital, maternity leave, the list goes on. Parenting will involve more responsibilities and new roles for you and your spouse, making life a roller coaster ride. You cannot prepare for this role by reading a book or watching videos; it is a learn-as-you-go process, and every parent’s journey is different. As you will be juggling a lot after the baby arrives, it is ideal that you have arranged your financial plan in advance.

Here are a few steps you can take to make your parenting journey financially stress-free.

Life and Disability Insurance

Getting life insurance is all the more vital now if you do not have it already. This can come in handy for many reasons, from paying college tuition, housing loans, weddings, and in case of any untoward incident, it may at least provide your family some breathing room during those emotionally draining times.

If you have life insurance, you can add disability insurance to provide financial protection in the event of disability, which will help you pay for household expenses until you can figure out what to do about your future.

You have 90 days from the day of birth to include your baby in your health insurance. The sooner you do it, the better, and any unexpected expenses in the future can be covered.

Build an emergency fund

According to industry standards, you should start building an emergency fund that has at least three to six months of expenses in it. Make sure your family is prepared for unexpected circumstances, such as a job loss, a death, a pay cut, or an unexpected expense.

College fund

Education costs are rising rapidly, so opening a college fund at the earliest possible time would be prudent. Consider investing in funds with a potential for high returns over the long term. A college fund will allow you to worry less about the costs when your child pursues their dreams. This way, you won’t have to worry about getting into debt in order to provide for your child.

Retirement Fund

You should provide the same quality of care for yourself as you do for your child. Invest in your retirement fund religiously so you can enjoy a relaxed retirement. It would be your goal to lead an independent retirement and not be a burden on your children. Plan for your future medical and home care needs now.

Prepare a Will

Life is unpredictable and throws us into situations that can be devastating at times. If you cannot guide your child and be a part of his/her life, you would want someone you trust to carry out your wishes, someone you have full faith in and someone who will treat your assets as you would. These are all things you can include in the Will and file with your attorney.

Make pre-planning your finances a priority so you can fully enjoy your time with your child without having to worry about upcoming expenses. In this way you will avoid getting into the debt trap. It is all too easy to get caught up in the moment, but being prepared makes life a lot easier.