Today’s article is titled Baby-proofing the family finances by: Yuval Rosenberg. For me (and I suspect for many of you), it’s a very relevant topic right now. Since Jerrill and I are trying to start a family, we are in a whole new planning phase of our lives as well, and while I think this article is possibly a little specific to the situation of the couple in the article, the topic is one that needs to be discussed.
The article centers around Chad and Stephanie Grant, from San Diego, who are both 31, have been married 7 years and are starting a family. They make a very good living, with a nice nest egg already started, but not a very big emergency fund. The article points out that they have a few actions to take to be ready for baby.
If you are in the same situation, trying to start a family, I have a few tips:
- You MUST have an emergency fund of AT LEAST $1000, but preferably 3-6 months worth of expenses.
- It’s a good idea to find out what the total cost of doctor visits and delivery will be and save that amount (or as close to it as you can) to pay cash for your baby when it’s born. It’ll be nice not to finance your child, right?
- Now is the time to get diversified, as the article points out. Make sure you don’t have all of your retirement “eggs” in 1 basket. You should diversify between small, mid and large cap funds, and international funds.
- Insurance! We all know that health insurance is important, but life insurance is equally important when you are starting a family. If you die, something has to replace your income!
- A Last Will and Testament is important for you and your spouse, but when you have a baby, it’s IMPERATIVE. If you don’t have a local lawyer, or don’t have the cash for a lawyer, then go to USLegalForms.com and do it yourself on the cheap!
- And, of course, stock up on diapers (or ask for gift cards to buy diapers)!
That’s it! Check out the article, and use these tips to get you on track, if you aren’t already! Good luck, and I look forward to your questions and comments!
Tags: Budgeting, Emergency Fund, Finances, Financial planning, Marriage, saving money
