The 5 Best Money Tips For Your 30s
The 30s are the best decade of your life. You are out of the career and personal uncertainties of the 20s and are surer of yourself both personally and professionally. But you mostly have a family of your own and more responsibilities to contend with. Handling personal finances well is a major task during this decade, as the needs of the family increase but so does your income. This decade sets the foundation for your future financial life, so the behaviour you exhibit in your 30s can make or mar the future decades.
However, focussed discipline and knowing how to handle money responsibly can hold you in good stead during this time. We’ve compiled the 5 most important money tips for your 30s, from borrowing a personal loan to making the right investments:
#1 Save every month, and whenever you can.
The savings habit is the most important one to inculcate, especially in your 30s. It takes discipline and focus to stay the course and save money every month, but the payoff is beneficial. Saving just Rs 3,000 to Rs 5,000 per month from your income creates a comfortable nest egg for the future. But be sure to pay the savings fund the moment you receive your salary, instead of waiting to do so at the end of the month when reserves are constrained. Also, aim to never withdraw from the savings fund unless it is an emergency. The more money you set aside in your savings, the bigger the fund and the higher the opportunity for future benefit.
#2 Invest your earnings to make your money work overtime.
The point above explained the benefits of regular saving. However, money sitting idle in your savings account does not grow quickly. It may certainly get savings account interest, but the earnings via interest are quite meagre. Instead, aim to invest a portion of your savings in mutual funds, shares or other suitable opportunities based on your investment horizon and risk appetite. Investments make your money work overtime, even when your income stops. The growth happens exponentially with time, and based on the market performance of the instruments you invest in. You can time their maturity dates to coincide with future milestones.
#3 Buy insurance for life and health.
Even as you work towards creating a stable life for yourself and your loved ones, it helps to remember that your life and health must be safeguarded at all costs. If you are unfortunately absent in the future, your loved ones will suffer from the perils of a loss of income. You might worry about what happens to their goals and dreams in your absence, how your spouse will run the house and how your children will finish their education…instead of worrying, you should invest in suitable term life and health insurance plans. These pay your dependents a good pay-out in your absence, and ensure that they stay the course to realise their future dreams even without your income.
#4 Borrow personal loans instead of dipping into your savings to buy things.
It takes several years to build a savings fund, and just a few minutes for a financial emergency to deplete it completely. The prospect of starting afresh to build your savings fund to its recent level is a daunting one, especially in your 30s when there are so many demands on your income. Instead of using your savings to buy expensive items or pay for emergencies, you should apply for an online personal loan. The online personal loan can be borrowed from leading instant loan apps enabled on your smartphone. Though the personal loan interest rates are normally on the higher end of the scale, the loan tenure is much lower and repayment terms are flexible. You can get out of debt faster with the personal loan and keep your savings intact as well. Besides, the loan money can be used for emergencies or even to buy an expensive phone or foreign trip.
#5 Start retirement planning.
Though retirement seems to be a faraway eventuality in your 30s, it is never too soon to start planning for it. Caught up in various responsibilities, you will not notice the years pass you by and suddenly, you are on the wrong side of age 50. It is then too late to start planning for your retirement, so start today. The sooner you start, the more time you get to invest in suitable options and build a good retirement corpus. You can invest in ULIPs, mutual funds, gold bonds and even annuity plans to create a large retirement fund for yourself.
We hope the tips mentioned above help you plan your financial roadmap and make your own and family’s dreams come true.