5 Money Milestones to Hit in Your 30s
When you reach your 30s, the chance that you have hit a stride in your career is high. You get a good salary...
When you reach your 30s, the chance that you have hit a stride in your career is high. You get a good salary credited in your account every month, and life seems good. However, in addition to a good pay scale comes the handful of responsibilities that you must handle as an adult.
To shoulder these responsibilities and have a prosperous future, global financial experts suggest that you must achieve some milestones before turning 30. While some of these milestones can be achieved with time, others need proactive work.
Here are five money-related milestones that you should aim to achieve before you hit 30:
1. Become Debt Free
Some of you might have outstanding debt of your student loans or credit card. It is better if you tackle these debts before you turn 30. Start by paying off the debt that has a higher interest rate.
Once that is done, you must try to keep your credit card balance below 25 per cent of the available limit because if you have higher credit dues, the chances of the rejection of your future loan application are higher.
2. Increase Your Emergency Savings
For people with 9-6 jobs, it is essential to have money worth up to 6 months of their expenses in the bank. However, this may vary from individual to individual based on their circumstances.
For instance, if a person has an unsteady job profile, he/she might need a bigger fund than the person who has a steady income. Similarly, if someone has a family, his/her emergency savings should be way more than a person who has no dependents.
The point here is that one should always have an emergency fund as life is full of uncertainties. So, if you do not wish to sell your stuff or ask someone for money, start saving at the earliest!
3. Kickstart Your Investment Portfolio
Once you are done with your emergency savings fund, begin investing in market-linked instruments, so that you have better chances of meeting your goals. ULIPs are one such wealth creating tools that allow you to invest money in the market.
Therefore, look online for the best ULIP plans in India and compare them to choose the one that suits you the best. Moreover, insurers like Future Generali also offer various benefits like loyalty additions, different fund options, partial withdrawals and others to make the plan suitable to your needs.
So, if you are looking for the best ULIP plans in India, research properly and choose the one that provides you value for money.
4. Get Insured
When you are in your 20s, getting insured might be the last thing on your mind. However, purchasing insurance is the most important thing to do after you begin earning. Therefore, have the right kind of life and health insurance plan in place before you turn 30.
The life insurance policy will help in taking care of your family if an eventuality happens. The health insurance policy will cover you in case you suffer from a medical condition. Moreover, another benefit of purchasing insurance is that you can claim tax deductions under Section(s) 80C (life insurance) and 80D (health insurance).
5. Begin Your Retirement Savings
Retirement may seem like such a far-fetched thing when you are in your 20s. However, understand that for an ideal retirement, the more you save, the better it is!
Before turning 30, therefore, you must have a retirement plan in line. It might include saving some amount in your PPF account or retirement pension plans. While some of you may have an EPF account provide by your employers, it might not be enough to see your expenses through your golden years. So, begin investing in a proper retirement plan to enjoy your best years peacefully.
Turning 30 can sometimes serve as a wake-up call when it comes to your finances. However, if you reach these above-stated milestones before you turn 30, you will not only set yourself up for success but also a carefree life!