Child Marriage Plan
Weddings are in fact considered to be synonyms with fun-filled, colourful and musical events.
Every parent wants to make the wedding of their child one of the most memorable occasions of his / her life. Weddings are in fact considered to be synonyms with fun-filled, colorful and musical events. But along with all of this, another important thing attached to weddings is “expenses”. And in order to fulfill these desires, it is imperative that you follow the right approach towards planning for your finances. Having a practical approach to all wedding related expenditure is necessary and that will enable you and your family to live a stress free financial life.
While planning for your child’s needs, it always pays to start early. This is because if you start saving and invest early, it will give you a larger time horizon to meet the goal and even build a bigger corpus.
Remember the old adage, “Rome wasn’t built in a day.”
Therefore, to accomplish the dream of getting your child married begin saving and investing early —perhaps when he/she is a toddler.
Starting early has a variety of benefits:
✔ Permits you to take a relatively higher risk and invest in equity mutual funds and benefit from potentially higher returns in the long run
✔ Helps to benefit from the power of compounding; and
✔ Allows you to contribute smaller amounts regularly over longer periods
Don’t be carried away by societal pressures or affluent friends or neighbors. Remember, each one’s personal finances are unique. There’s also no need to ape others blindly, as each one’s financial circumstances/situations are different.
Therefore, focus on YOUR budget as there are other vital financial goals to fulfill as well like your child’s education and your own retirement, among a host of others.
While estimating the wedding expenses, take into account the present value i.e. the amount you would have spent today on your child’s wedding on a rational basis. Extrapolate the future value considering inflation and the time horizon before the goal befalls.
Then work out the periodic monthly investments you need to save in mutual funds via Systematic Investment Plans.. Keep in mind that the earlier you start this exercise, the lesser you would have to set aside and invest per month to accomplish this financial goal.