Parents — Consider Making These 9 Investments In The New Year

When you have kids, your priorities undergo a deep-sea change. Where you may have once lived to spend the excess cash left over after paying your bills, you now need a long-term investment strategy to ensure your little one’s future security.  

Therefore, you need to think beyond saving for your next vacation. If you’re a parent, please consider making the following nine investments in the new year.

1. Health and Disability Insurance 

Despite the burden it creates on those with chronic illnesses, the U.S. remains the only industrialized nation not to guarantee health coverage, and change may not occur anytime soon. Until then, you are alone when it comes to providing insurance if your employer does not. Medical bankruptcies can affect your credit for a decade after you file, making it impossible to buy a home or even rent an apartment.  

COVID-19 should have reminded folks how fragile they are. What would happen if you get sick and can’t work? Don’t count on social security unless you have years of income set aside to last until you get a determination  — get a disability policy now. If you wait until you become injured or ill, you won’t find coverage minus a rider disallowing the very condition rendering you unable to earn an income. 

2. Life Insurance  

Who likes to think about their mortality? However, consider how your family would struggle without your contribution. Even if your spouse is the primary breadwinner, you nevertheless do a ton of housework and child-rearing that they would have to pay someone to take over if you died.  

Life insurance need not cost much — a healthy, 30-year-old man can find a term policy for under $15 a month. Plus, the younger you are when you secure it, the lower your rates.

3. Upgraded Vehicle Coverage 

You go to start your car in the morning and realize a hit-and-run driver crushed your driver’s side during the night. The police don’t find the culprit — guess who will probably get stuck footing the cost of repair?  

Collision coverage protects you from hit-and-run damage as well as accidents. Comprehensive policies also include theft and vandalism. If your ride is your pride, the right insurance can make the difference between an inconvenience and a zero-transportation crisis.

4. A Matchbox of Your Own 

There’s depressing news if you rent. Monthly rates continue to outpace inflation, and when you couple this development with wage stagnation, you could soon find yourself priced out of a suitable home. Plus, aren’t you tired of subjecting yourself to your landlord’s ever-increasing demands for more money?  

The best way to achieve housing stability is by buying your home. Even if you think it will take forever to repair your credit and amass a downpayment, the sooner you start, the more quickly you’ll reach your goal.

5. A Quality Home Warranty 

If you already own your castle, it pays to protect it. What happens if your septic tank needs repair right after your boss cuts back your hours — and income?  

A quality home warranty means you only pay one low deductible to fix anything from a garbage disposal that confettis your kitchen to a flood caused by broken pipes. It’s the best way to get the peace of mind that you can cover any emergency repairs that arise.

6. Sustainability Upgrades 

If you catch a chill while sitting by your front door or bay window, why haven’t you hit the hardware store yet? A caulk gun and some weather-stripping cost less than $20 but can save you much more over the years in utility bills.  

Plus, you save $3.80 each year for every incandescent light bulb you replace with an LED model. If you have 20 bulbs in your home, that’s nearly $50 a year — enough to fund your next holiday feast.

7. A Fitness App and a Cookbook 

Your health is your most valuable asset — if you still deny this wisdom, please, talk to any sick person. Taking care of your body can save you a fortune in medical bills over the years.  

You can choose from dozens of fitness apps — find a workout that you love that follows you anywhere, pandemic or no pandemic. While you don’t need to diet unless you carry excess pounds, everyone benefits from eating more plant-based meals. The right cookbook can teach you how to make things like kale and broccoli taste marvelous.

8. A 529 Savings Plan 

Higher education costs continue to skyrocket. Much like expanding health care access, some politicians talk a relief game — but don’t hold your breath. You can let your children start their adult lives swimming in student loan debt or invest in a 529 plan.  

These instruments carry considerable tax benefits. Although your contributions aren’t deductible, the interest grows tax-free and remains so as long as the money gets used for qualified educational expenses.

9. A Mutual Fund 

Historically, the stock market does a much better job of keeping pace with inflation than traditional savings accounts. However, many people shy away out of fear of losing money — are you one of them? 

You don’t need to spend hours researching the Wall Street Journal’s stock pages. Instead, why not invest in a mutual fund and let the financial experts diversify your portfolio for you? You can find funds that align with your values and invest only in companies that meet standards of sustainability or human rights commitments.

Parents, Please Consider Making These 9 Investments in the New Year 

As a parent, your financial priorities shift. Please consider making these nine investments in the new year to keep your family more economically secure.