Raghav was the father of Neha. Stemming from an average middle-class family, Raghav assumed that he did not need to take stringent measures to recuperate monetary assets for the wedding ceremonies of his three beloved daughters. This assumption led Raghav to depend solely on his savings without any other form of investment for almost 23 years.

Raghav was regrettably unaware of the various factors that fuel the need for monetary management. He was heedless of factors such as the time value of money or inflation of the economy as the time progressed.

This lack of knowledge and investment resulted in Raghav getting struck with an unpayable interest amount. He took out a huge loan to fulfill his daughter’s dreams. It took him a while to realize the importance of early investment and he deeply regretted his decision.

Over time, it became a burdensome task to repay the monthly installments. Raghav found it non-viable to manage the finances revolving around the household requirements and also consolidate his debts. These dilemmas led him to liquidate almost all his savings which led to the financial crisis.

The above snippet illustrates the level of distinctive concerns that can arise due to a lack of financial preparation for your child’s marriage.

To avoid the pitfalls that Raghav fell into, it is highly important to have a plan for investments and systematic structures to grow your monetary assets. Given below are a few pointers which can help you to start you’re the journey of financial planning for your child’s marriage:

1. Start early

The first step towards availing a secure financial umbrella for your child’s marriage is starting early. Starting early includes multiple benefits like a long period for you to save a load of corpus through various LIC of India policies or opening multiple savings deposit accounts. It makes you prepared to face obstacles that might come your way and gears you in facing uncertainties.

1. Budget estimation

Bruce lee strung the words in truth when he said, “I’m not in this world to live up to your expectations and, you’re not in this world to live up to mine”. Families differ widely in expectations. Though a grand display for your child’s marriage is a common emotion, it is required of you to rationally estimate a budget that is well suitable to your requirements and capabilities. The various set of factors to consider in your budget estimation are the expected inflation rate, the time left for your child’s marriage, and interest rates expected from current and future investments. These factors will help you estimate a dream cost manageable for your child’s dream wedding.

1. Portfolio of acute investments

Investing in the right assets that will help you grow your savings is significant while formulating a financial management plan. The recommended approach is to invest in LIC of India policies for your child’s marriage. This suggestion is fueled by the factor that the gains of these investments are risk free and tax free which can be significant if you start early.

1. Avoiding debt

Taking a well-sized loan can be burdensome when it comes to repayment through multiple installments. The factor of having to pay high-interest rates in the future will make it impossible for you to break out of the debt trap. It can take you years to repay a loan and this will in turn majorly impact your financial health.

Managing a dream marriage with the funds you already possess through multiple investments is much more efficient than risking your financial and mental health by taking lump loans.

It is clear that lavish marriage ceremonies are always seen as emblematic of wealth and societal status. Therefore, starting early is the key. So, what are you waiting for? I will be happy to assist you with the best insurance plans according to your needs and requirements. Feel free to reach out to me in case of any queries and queries. Happy to help!