- Date : 16/06/2023
- Read: 3 mins
Securing funds for your child’s higher education, marriage and career requires long-term financial planning. This Father’s Day young fathers can start planning early for a worry-free future of their children.
- Father's Day 2023 is around the corner. This day, secure your child's future
- Start investing early and stay disciplined
- Create an emergency fund and a diversified portfolio
- Plan your taxes and review the portfolio regularly to ensure its on track
As Father’s Day approaches, children plan to pamper their fathers for all their love and support. As a young father, you can bask in your child’s love on Father’s Day but you have to plan for its future too.
Raising children, their higher education and paying for their weddings involve considerable costs. You have to create a suitable financial plan to create a corpus sufficient enough to meet these costs. If you are wondering how here are four tips that can help –
Start Early and Stay Disciplined
Starting early is always beneficial as the old saying goes – the early bird takes the worm. There are two primary advantages to starting savings early on. One, you can benefit from the power of compounding which grows your corpus exponentially with compounded returns when given time. Two, you can save small and still end up creating a considerable corpus.
So, start investing from an early age so that you have 15-20 years on hand to plan for your child’s future.
Also, stay disciplined in your investments. Save every month regularly. Avoid the temptation to withdraw from your savings and allow them to grow.
Create an Emergency Corpus
Emergencies can strike unannounced and when they do they might threaten to wipe out your savings. So, it's better to create an emergency corpus meant to pay for such emergencies. Invest in life and health insurance plans and set aside at least 3-6 months’ worth of your income in a liquid avenue (like savings accounts or liquid mutual funds) as an emergency fund.
Diversify Your Investments
When investing your savings, there are different avenues that you can consider like equity, debt, gold, and real estate. Don’t play favourites. Invest in a mix of assets like equity shares, mutual funds, gold, fixed deposits, small-savings schemes, etc.
This would diversify your investment portfolio helping you to minimise the investment risk while enhancing the profit potential.
Plan Your Taxes
Investments and their returns might attract tax or give you tax-free benefits depending on which avenues you choose. So, invest in tax-saving avenues to reduce your tax liability. This would help you earn tax-efficient returns and the corpus would also fulfil your child’s needs.
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Summing it up
Use these tips and plan for your child’s future. Review your portfolio regularly to ensure that it is on track to fulfil your child’s financial needs.
Father’s Day is a wonderful time to bond with your children and feel appreciated. Return your child’s love by securing its future. Plan for your child’s future and help them fulfil their dreams.