Father’s Day 2024: Fatherhood is one of the fulfilling experiences for a man as it helps him evolve as a person and develop a sense of responsibility. This is the time when a father start prioritizing the needs of another being over his own. Fatherhood is also a time when a man starts becoming a lot more financially responsible.
As you start a family, you face challenges like budgeting regular expenses and investing for future needs like kids’ education and family healthcare. By setting up a robust savings plan, a father or dad-to-be can navigate the financial challenges and secure a stable future for his kids and the entire family.
Also read: Secure Your Dad’s Future: Life insurance for superheroes
A father serves as a pillar of emotional support and guidance for his kids. Financial planning is the cornerstone of a secure and prosperous future. For Indian parents, it involves a comprehensive approach that encompasses savings, investments, insurance and retirement planning. In present times, it’s important for fathers to know the significance of financial planning, particularly when it comes to their children’s educational planning. This Father’s Day, take charge of your family’s financial journey with some invaluable tips, as shared by Tushar Bopche, Co-founder and Head of Strategy, Invest4edu.
Budgeting and savings:
Set clear goals. Establish short-term and long-term financial goals. Short-term goals could include saving for a family vacation or an emergency fund, while long-term goals might involve buying a home or saving for your children’s education. Commit to regular savings. Adopt a disciplined approach to saving. Allocate a specific portion of your income towards savings every month.
Diversify your investment portfolio:
Invest in a mix of equities, mutual funds, fixed deposits, and real estate. Diversification reduces risk and maximizes returns. SIPs in mutual funds can be a great way to build wealth over time, offering the advantage of rupee cost averaging and disciplined investing.
Get adequate life insurance:
Ensure you have enough life insurance coverage to protect your family in case of unforeseen events. Term insurance plans are a good option for substantial coverage at affordable premiums.
Don’t forget health insurance:
With rising medical costs, a comprehensive health insurance plan is essential. It safeguards your family’s financial health during medical emergencies.
Retirement planning:
Contribute regularly to provident funds and consider investing in pension plans to secure your post-retirement life. The National Pension System (NPS) is a government-backed pension scheme that provides tax benefits and a regular income post-retirement.