This is a popular topic that everyone worries about regardless of which age group you are in. I would think money impact millennial dads the most compared to other age groups.
When I changed from being a husband to father, the first thing came to my mind was money and how would I manage it. Now that I have a greater responsibility on my shoulders, it would be prudent to have some form of financial planning in place.
My personal opinion is, millennial dads should take care of themselves first before making plans for their babies. This might sounds selfish as a new dad but think of it in the long term. When our personal finance is sound then we have the capability to provide enough for our dependants.
4 Financial Must-Do’s For Millennial Dads
1. Insurance Coverage
It requires more effort to control my diet and keep myself in shape each year. This has made me realised that my health is not what it used to be and I should be responsible for it. A millennial dad such as myself should get sufficient insurance coverage because my family does not need to worry about paying my hospitalisation bills in the event of an emergency health condition.
These are the basic insurance plans that I recommend buying:
- H&S Insurance
- Term or Whole Life Insurance
- Personal Accident Insurance
- Early Stage Critical Illness
Check out Jiale Tay’s MoneyMap videos on insurance plans.
Jiale is a new-age financial adviser. For more than half a decade, Jiale’s passion has been guiding families & individuals with plainspoken, no-nonsense financial advice, especially in his forte of Investment. His MoneyMap videos have been informative and practical.
2. Emergency Fund
At certain point of time, everyone needs to have an emergency fund to shelter from the uncertainty. This uncertainty may come in the form of retrenchment from the job market or major expense. Therefore it is recommended to keep at least 6 months of expenses in the emergency fund.
3. Retirement Planning
This is a hot topic discussed in Singapore.
Let’s be honest with ourselves that all of us are going to grow old one day. Like it or not, we simply cannot rely on our dependants or government to take care of us when we are old. It is an extra financial burden on our children when they have their own family to support too. We also cannot predict how the government’s social welfare will be in the next 20 to 30 years.
So what’s left for us is to start planning for our retirement while we are still able and employed. Start by asking yourself what is the monthly expenses you will need to retire and the number of year before retirement.
We can make use of the CPF Saving Calculator to calculate our goal. These are some of the popular ways that Singaporeans used to build up their retirement nests.
- Investments (Easiest Ways To Invest A Monthly Sum For Beginners)
- Central Provident Fund (What You Need to Know About CPF Top Up)
- Starting a business or side hustle
4. Career Progression
I have to emphasis that career progression is also important to millennial dads. Being employed will benefit us to build our emergency and retirement funds faster.
We should not deprive ourselves of the opportunities to make progress in our career when we have children. I often hear this statement, “I do not have time to do this because I need to take care of my children”
The world keeps changing that we have to keep learning to ensure our skills stay relevant to the job market. Unlike a decade ago, we have to depend on our company to send us for training or sponsor ourselves.
Learning a new skill has made easy today. Udemy has made online learning affordable and convenient. It can be anywhere and anytime as long as you have a laptop with internet connection.
The hardest thing is just to start.
But I am getting long-term financial peace?
Ok, that's all for today!