Financial Planning For Your Child’s Marriage

It is every parents' dream to plan a grand wedding for their child.Raj and Simran had the same dream. But, it is not easy to manage everything as marriage is considered to be ahuge responsibility for parents.

Raj and Simran gave birth to a beautiful daughter who was 25 years old. At that time, Raj was the only earning member of the family. The couple devised various plans to invest in multiple sources to secure their daughter’s education of studying abroad. They had also collectively planned for their retirement by allocating funds in the best possible way. But when it came to their daughter’s marriage, Raj and Simran remained complacent assuming that they had a lot of time to plan for the same. 

When the time for throwing a lavish wedding arrived, the couple panicked as they had not invested in the right places for the marriage. They had not saved enough but this realisation struck them later. They had no option but to opt for huge loans from the banks which charged them heavy interest rates later. 

Learning from the story of Raj and Simran, you need to be rationally planning for such important decisions of life. It is important to start planning early to avoid such undesirable situations in life. This way, you will not stress out or worse, be in debt, when the time comes. Here are a few points you need to focus on before you start investing :

1.Start early
Any delay in starting your investment, can increase your burden in the future. Don’t wait for the right time and start investing money in short installments every month. The small amount over the years accumulates to form a huge sum. After you make the smart decision of starting your financial planning early, you need to
carefully decide how you are going to go about it. The choice of investments you make is important to receive appropriate financial returns. 

2. Calculate wedding expenses
Every family has their own budget and aspirations when it comes to their child's wedding. A few might want a luxurious affair, while others can be content with a simple ceremony. So, calculate the expenses taking into consideration things which are important for you. Consider your monthly salary, pending liabilities, inflation rate, risk-appetite, and many other factors before deciding on your investment. You must ensure that your financial health is in check. Also, plan according to what you are capable of handling. You should not get influenced by your friends or relatives and put yourself in debt only to match societal expectations of a lavish wedding.

3. Manage your assets carefully
Building your portfolio as your end goal in mind is critical to a financial plan. When it comes to marriage, investing only in equity funds is risky, even though it provides substantial returns. Depending on your risk appetite, you can balance out funds between equity and debt. This way, you can receive a good return when you take out the funds. Also, there are many other investment options available these days. They can be government bonds, gold, SIPs, etc. Therefore, a perfect blend of two or three viable investment options can help you sail through easily. It can be tempting to take money from your savings accounts, fixed deposits, or investments you made for your retirement while planning your child's wedding. However, you should realize that these other investments also serve their purpose. Hence, you should prioritize and safeguard these saved up funds.

4. Say no to debts
Taking a sizable amount of debt can be seen as a short term easy option but it can put you in a risky position in years to come. You have to ensure that you don’t have to bank upon your family and friends or borrow from banks to manage wedding expenses of your child. This can simply put you in immense pressure to repay the loan with a high interest rate. Therefore, arranging a beautiful wedding for your child is just as pivotal as smoothly carrying out other household responsibilities at home. Keep in mind to invest after careful consideration of risk tolerance level, liabilities, and miscellaneous expenses, so you can live a wholesome life. So, what are you waiting for? I will be happy to assist you in the best possible way. Seek my expert guidance to know more about the right kind of insurance plans
which suit your needs and requirements.