The Father's Guide to Responsible Financial Planning

It certainly is no easy task being a father and especially not when the world around has become so much more uncertain and chaotic. So here are a few essential tips for fathers to manage finances responsibly in these torrid times.

• Get your Partner Involved - Women are the ones managing home budgets, managing home expenses and highly involved even when it comes to your child’s schooling, grooming or potential career choices. So in every sense you have a knowledgeable partner at home who should be brought to the financial planning table immediately.
• Re-evaluate your Financial Plan - Re-evaluating your financial plan from time to time is a responsible investment habit. Ensure that your key goals are well defined and planned for. Consider the high educational costs and post retirement expenses while planning your finances.
• Rationalise your Cost of Living - Get disciplined about your expenses. Start putting a priority to your family’s needs and expenses and put a stop to wasteful expenditure.
• Maintain Liquidity -You have to keep enough liquidity to take care of living expenses for at least 5 to 6 months and also take care of unforeseen emergencies.
• Insure Life and Health -Please ensure that your family is well protected with adequate insurance at all times. Take a term cover for yourself to secure your family and a health insurance policy with a reasonable cover.
• Stay focused on your Investment Goals - One has to stop worrying about the markets and stay aligned to investment goals. If you are investing for long term goals like your children’s education or your retirement, the current market phase should not affect you.
• Stay away from Risks - No matter what your risk appetite is, you should refrain from investing on impulse or based on hearsay. Invest in good quality assets , gradually and preferably through a mutual fund.
• Invest through Mutual Funds - Consider investing in mutual funds as you get experts to manage your investments. Plus you can customise your investments based on your investment goals, risk appetite and your investment time frame.
• Go for SIPs - This is the best time to continue investing in mutual funds via SIPs. Investors don’t need to worry about timing the market and can start with an amount by downloading sip app that suits their budget and investment objective.
• Get your Children started - You should consider getting your children comfortable with managing money, subject to their age and understanding. Expose them to the idea of money, expenses and savings so that they are well prepared for the future.

The Covid experience has made us realize that life is unpredictable. Therefore the best trick in our books is to be prepared at all times. Father’s have a big role in managing the family’s finances. But a few tips can hopefully make life a lot more organized.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.