Personal Financial Preparedness for Marriage and Child Birth
In the East, they sincerely believe three major life events of birth, death and marriage are the work of destiny. These are identified as the most emotional events of your life. We can better handle these moments of sentiment and emotion, if we are adequately provided for financially. In other words, financial preparedness will help us to better deal with these extraordinary events of our life and feel the joys associated with them most intensely or cope up with the sorrow involved with the incident most gracefully. It is better to calculate the financial responsibilities well in advance so that you do not have to remain occupied with the numbers and figures during such emotional phases of your life.
Birth of a child:
The coming of a new member in your family is a moment to rejoice. But it also adds to your expenses. But by making some financial preparations to welcome this new guest in your home, you will be less stressed out financially and will be in a better position to cherish your newly acquired parenthood. So start planning for the extra expenditure right from the moment you are informed that a baby is coming. In doing so, you will be left with much more time and energy to build up a bond with this new person in your life. Depending on your spending habit and the state of your personal finance, lay out a budget first. Take out some time to discuss with your spouse about your anticipated ways of rearing up your child and make some compromise here and there to tailor it with the size of your budget.
Marriage is the union of two consenting adults. The union becomes blissful, if you are bound by trust and mutual respect. This trust and respect should reflect in the matters of finance as well. So before you take the vow, be clear about each other’s financial status and the monetary contribution both of you can make towards your family. If any of you are running on debts, do not hesitate to disclose to your future life partner. It will only complicate the matter if he or she comes to learn about it after marriage. In the days following marriage, chalk out a financial plan together and set up a joint account. After marriage you will be required by law to change the name of beneficiaries in the investments, insurance policies and bank accounts. If a lady is changing her surname after the marriage, she will make sure to use this changed name in all important documents.
An untimely death is the most unfortunate event for a family. We can not make predictions about death, so it is better to stay prepared for it all the time. Financial preparation involves making a will to determine where all your assets will go in your absence and who will be the legal guardian of your minor children. You can also build up a trust to look after your assets in your absence. Also make your spouse aware of all the details of your personal finance documents, safe deposit vault key, property deeds and others.