Family planning is a very big responsibility on one’s shoulders and involves careful decision making at every step. A small family has a different nature of expenses when compared to a large family. A small nuclear family consisting of the husband, wife and one/two children has its own composite set of expenses that needs to be planned carefully. When it comes to a large family that consists of dependable parents in addition to the husband-wife-children combination, expenses have to be carefully watched over and plans to save extra money have to be made early on in one’s portfolio.
The right guide to family planning is often based on the income the couple generates through their work. Later, they are allocated for specific targets such as children’s education, parents health expenses, loan payables, house rents, personal investments apart from paying monthly bills and meeting periodical expenditures. All these targets build a huge pressure on the couple and they ought to seek the right financial planning measures in order to sustain through the journey:
The financial burden that these 5 milestones can put on your family
1. Buying a home.
When a couple decides to invest in a home/flat by buying a bank loan, they have to consider the interest rates allocated for the loan they have bought. Monthly EMIs are easy payout options to clear the loan in the fastest time possible. Usually home loans are bought for long time periods to manage the interest rates with convenience, but any additional burden on the diversion of income into other channels is bound to create a certain pressure on the earning members of the family.
2. Children’s education.
Right from getting the child admitted to a good school till the child finishes his studies, it’s a big challenge for the parents. Meeting the education expenses of children is a big task in itself. Higher studies especially take a toll on the parents’ lifelong savings and create a stressful situation for them. Keeping one’s assets in the loop along with careful planning by children for higher studies will avoid any last minute confusions when applying for universities.
3. Children’s marriage.
After studies, comes the aspect of marriage. Savings for marriage is quite different for boys and girls. Parents of the girl child need to save that extra money to meet expenses during their daughter’s marriage. Meeting costs for jewellery, taking care of the guests at the marriage and other related expenses to conduct the marriage are to be kept in mind while planning for an event of marriage in the family.
4. Change of job.
The first job assigned to a person is the most memorable one and he cherishes it for an entire lifetime. As years roll by, persons intend to change jobs to suit growing needs and to equip oneself with higher professional ladders. With the change of job, comes the aspect of a tremendous amount of pressure to cater to the changed environment of the job, work area, core work assigned etc. Hence, planning sufficiently before making a jump to another position is much sought after to avoid building necessary pressure in one’s profession.
5. Retirement plans.
After taking care of all the needs and satisfying the family enough with your income for a lifetime, there comes a very important phase in one’s life, that is called the retirement phase. When a person crosses the working age limits and intends to settle down at home, to happily spend time with his family, he still isn’t rid ofthe entire financial burden in this world. To lead a smooth life after retirement, he needs to plan early, when he is still in his job, so that he can enjoy the benefits of retirement without having to depend on anyone to meet his expenses.