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A New Financial Planning Responsibility

Elvis Elvis

Congratulations on the birth of you newborn, hopefully the labor and delivery went smoothly and without incidence and your new bundle of joy is healthy, happy and ready to start the wonderful journey called “life”.

If you haven’t already done so,now may be a good time to start thinking about some of the new changes you’ll have to make in order to have a smooth transition to your increase in financial responsibilities for your baby.Your probably thinking “….man, I have all the time in the world, my baby is not even 1 yrs. old yet”. The reality of it is, when it comes to financial planning for your kids- it’s “never to early.”

As a new parent (or maybe you already have children) you always want to make sure that certain basic buildings blocks exist in your family’s financial plan. You may want to ask yourself some questions:

  • What do I do when my baby gets sick?
  • What if I get sick or injured and can’t work for and extended period of time, what do I do for income?
  • What would happen to my baby if I or my spouse should have an untimely death?
  • How will I pay for my child’s college when the time comes?
  • Once my baby is all grown up, will I have enough saved up for retirement?

    Depending on how old you are, some of these questions may have never come to mind before. I mean who really wants to think about death or ever retirement for that matter?There are those of us that have a very “care free”, nonchalant way about life and don’t mind “letting the chips fall as they may” when it comes to financial planning for the family and then there’s those of us that need to have a bit more structure, by putting together some sort of game plan.

    A New Financial Planning Responsibility

    The most essential financial planning building blocks will consist of putting together a good “protection portfolio” for you and your family; this will typically include the following:

  • health insurance
  • disability insurance
  • life insurance

    These are the core building blocks that everyone needs to have- even if you don’t have any children and regardless of your age. Depending on where you are in your life cycle, disability and health insurance may not be as vital to have.If you’re a retired person and you’re getting your pension and social security, then obviously you wouldn’t need disability insurance. If you are of retirement age, you’re probably also eligible for medicaid, thereby taking care of most of your medical insurance needs.

    You may be saying to yourself that “…there’s just not enough money left over, at the end of the month, to add any new financial obligations.” Seeing that you agree that these are must have pieces to your family’s financial plan, you must then ask yourself where do you squeeze this extra money from or how do I go about increasing my income to accommodate these new essentials?

    For starters, if you have a large amount of high interest credit card debt, and you own a home, you may want to look into refinancing your mortgage in order to consolidate those credit card bills in to lowered, tax deductible mortgage payment.