Nearing your 30s is a great thing, not just because are you more settled overall but also because there is a high chance you are finally achieving all your career goals. By the time you are 30, you have a sense of direction and stability in your career and your life; and there are high chances that you have a steady income, along with some good amount saved up in your bank account. To reach this phase, there are certain financial goals that you must aim to achieve before you turn 30 years old:
- Becoming Debt Free: Clearing out your debts (be it education loans or credit card debt) in your 20s while you are still relatively free from burdens and responsibilities is a wise thing to do, and something your future self will thank you for. Also, aim to keep your credit card dues lower and your credit card balance below 25% of the available limit, to increase the approval of your future loan applications.
- Emergency Savings: By the time you reach 30 years, you must have a good amount of emergency money to deal with the unpredictability of life. It is essential to keep yourself secure for whatever circumstances might throw at you. Start saving an emergency fund – even if you work at a 9-5 job and have a steady income. In case you are self-employed and have a fluctuating income, you might require even more money in the emergency fund.
- Build an Investment Portfolio: When your emergency stash is ready, you might want to explore the best investment options and start investing in market-linked instruments. Learn the different types of investment and how to invest your hard-earned money in the market, so that can have various monetary benefits and returns. ULIPs can be a good option for achieving your financial goals. Research for the best ULIP plans in India and choose the one that gives you good returns and is the most suited for yourself.
- Become Insured: Right after you begin earning in your 20s, it is crucial to buy insurance. You need to choose the right life insurance and health insurance plans before you hit 30 years of age, to provide you and your family coverage during medical situations or any other eventualities. Buying insurance also provides tax benefits, as you can claim tax deductions under Section(s) 80C (life insurance) and 80D (health insurance).
- Starting Retirement Savings: You might be young right now, but you will not be young forever. You need to start saving for your retirement and have a retirement plan in mind by the time you turn 30. Save some amount in your PPF account or in retirement pension plans. Begin investing for your old age, now!
In your 20s, all of these might sound quite overwhelming, but if done systematically they are not too difficult. Start saving up money, learn how to invest money and start investing in the right places, and clearing off your debts. If you reach these financial goals before you turn 30 years old, you are certainly on the right track.
