Once you become a parent all you want is the best for your child. The first change that comes to your life is you replace your budget of eating out with diapers and toiletries. You end up making compromises with your shopping list. But these little adjustments do-not need extensive planning but things like healthcare and quality education need planning ahead of time. India’s First Free Online Financial Advisors As a parent, it is your utmost responsibility to provide quality education and proper healthcare to your child. present some simple steps which you should take in order to ensure that you have sufficient finance when your child is about to go to college.
Start As Early As Possible
With every passing day, the education expenses can be seen increasing. For example, if a course cost Rs 10-12 lakh at the moment will surely inflate to Rs 30-50 lakh, 10 years from now. If you calculate the funding needs of your child, you can assess the future cost by factoring in inflation. One of the best things you can do is create a corpus for college as it is a long term plan which can be very beneficial for the future. The effect will be created out of the compounding growth and will allow you to create a fund with small, monthly contributions.
Investing In Mutual Funds
In order to build wealth mutual funds offer you different investment choices. According to your investment plan and risk-taking decision, you can choose from a debt fund, balanced mutual fund, and equity mutual fund. Depending on the risk taken with the underlying assets of mutual funds, the return prospects will be decided. Let us take an example, in the long-run equity-based mutual funds have higher return potential as they can be seen investing in stocks and also the risk associated is higher.
Starting Small And Stepping It Up
If you believe in astronomy and want the fund to be raised as astronomical then do not get involved by the magnitude of it. It is always preferred to start small and step it up. Let us take an example, at present suppose you earn Re 50,000 per month and you save Rs 10,000. So, by the next year if your income increases by 10% then you can also increase your savings by 10%. Even though you have limited means, with these little steps you can start early and secure your child’s future.
Two of the most important financial products are Life and Health Insurance. Even in your absence, Life Insurance ensures that your family stays financially protected. It is always advisable to aim for a corpus of 10-20 times of your annual salary to keep your family financially secured also helping your children achieve their goals.
You should not solely, rely on your corporate insurance as it may not be enough for your family in the long run. If currently you are not working or transiting from one job to another, corporate finance won’t cover your needs. So, it is always advisable to go for a Health Insurance to cover yourself and your family sufficiently.
With these easy money moves given by India’s First Oncall Financial Advisory Portal your child can be seen having a great future fulfilling his/her dreams and ambitions. Planning from the initial days is always a good option in securing your child’s life. So, it better to start early and be tension free while your child grows up.
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