Everybody’s life style is unique, but the common point that every individual faces when he reaches 30 years of age is “Financial Responsibilities”- whether it would be purchasing a new house, education costs of their newly born child, looking after the well-being of their parents etc. Though it is accepted or not, it is fact that reaching 30 years of age increases financial burden on the breadwinner.
To meet the day-to-day expenses as well as family responsibilities, one should need sufficient money, indeed it should be planned from his early 20’s. But generally it is neglected and once he reaches 30, he feels the “Heat” of the financial problems.
To avoid this, one should plan his financial life from his early 20’s, if not, even now, in the 30’s. Plan your finances well in advance before you reach 30.
Financial Planning Tips To Be Followed Before You Reach 30–
- Taking Sufficient Health and Life Insurance– The foremost thing to do before you reach 30 is taking adequate life cover and health insurance cover.
As you are the sole breadwinner of the family, your family would suffer if you are not covered with sufficient health and life insurance.
Ensure that you select “family floater plan” covering all your family members. Make sure you should take health insurance beyond your employer health cover as you may loose benefits when you shift from job to another.
Make sure you should take “Term Insurance” in place of “Endowment Policies” as they are relatively cheaper and covers high risk coverage with less premium. Endowment Policies won’t provide sufficient life cover as inflation beats the coverage value. Do note this
- Create Emergency Fund Up to 3 to 6 Months– Life is uncertain, No one knows what would happen in the next minute! Recent Corona taught us the need of creating Emergency Fund.
As private jobs are temporary, many employees lost their jobs during Covid-19. Not only job loss, there might be medical emergencies, your EMI’s and house rents might be on due etc.
Your Financial troubles won’t stop until you find another good income source. So you must be ready to face any financial emergencies. For that, you have to keep 3 to 6 months of your expenses as an emergency fund. This would protect you from deep financial troubles.
- Create a Financial Plan– If you are in mid 30’s, you might be holding some financial burden. If you neglect your finances and “Live in the Current Moment” you would suffer a lot in the future.
So think once! Analyse your financial condition and plan your finances by preparing budget in advance and stick to the basics. Never cross the budget limits and in case, you have crossed, choose alternatives to fill the gap of your finances.
You should have clear roadmap to your future. If you don’t have such plan, prepare it today
- Plan For Your Retirement– In India, the most neglible plan is “Retirement Planning”. Many think that it is long away from now and there is no need to worry on retirement today
.Some people are confident that their “Pension” would suffice their needs during retirement! But the fact they are forgetting is “Inflation in India”. Though you retire from your job, your lifestyle and medical expenses won’t cease after your retirement, in fact they rises rapidly. In that times you have to suffer financial crunch to meet your expenses
To avoid that situation, you have to plan for your retirement from your early 30’s. In fact it should be started from 20’s, but never mind! Start Planning for Retirement today itself! The moment you realise the need of retirement planning is the best time to implement a plan for retirement.
Don’t delay retirement planning, you are in mid 30’s, you still have 30 years to retire. You need not save lakhs for retirement now, just save a few thousands as per your economic conditions and gradually increase the investments whenever there is a salary hike