When you are turning 30, certain life decisions are to be taken very seriously. At 30 years of age, most of us would be married with children, hence there are chances of increased expenses. Hence, there are some financial decisions to be taken before turning 30 that would help secure the future. Wise spending and investing should be the mantra of those who are turning 30 or already in the ’30s.
The right age for planning retirement is 30. Most common mistakes people do is either assuming that it is too early to plan for retirement or invest very low. The blog on Retirement Planning from Bank Bazaar will help in understanding the nuances of retirement planning.
Few bucks must be always set aside as an emergency fund. How much would be according to your monthly expenses, but the aptest one would be to save at least 3 months of your regular monthly expenses. Except in case of extreme emergencies, this fund must not be utilized.
Right Career Choice:
When you are in the initial years of employment, we often tend to move from one organization to another. There would be absolutely no clarity as to which career prospects to be chosen. But, when you are in your 30’s, it is high time that we stick in a specific job. Organizations would also not prefer to have anyone, who is frequently switching organizations.
People who are planning to start their own business should make careful consideration of their decision. Though it is necessary to follow one’s passion, it should not be done at the cost of not paying the regular utility bills. If possible, you can see if the business can be started without the need of leaving a full-time job. Once the business becomes standardized and yields good profits, the decision of leaving the current job can be taken.
Invest in self:
Expenses keep growing day by day. In order to manage the growing expenses, it is necessary to increase the income as well. This can be done by increasing your skill set in the right manner. Understand the latest requirement in the job market and try to acquire the skill set. Do not consider these as expenses, they are investments that will yield returns in the form of increased salary.
Pay Off Loans:
It is always wise to be debt-free considering the amount of excess money paid to the banks in the form of interests. Though it is completely acceptable to have some loans, it is necessary to focus on repaying it to minimize the burden of loan. Focus on minimizing the principal amount, whenever any additional income is received.
Home loan is an important part of the loans taken by us. If you are planning to buy a new home, consider understanding the pros and cons of it, in comparison to the rented ones. Do not take the decision emotionally, since most of us do so!
Life is always unpredictable. Anything can go wrong anytime and we don’t want our family to suffer at any point. Life Insurance is always a good choice, whether or not we face any mishaps. Not only life insurance but medical insurance has also become the need of the hour, due to growing medical costs. Most of the organizations provide medical cover to their employees, their spouse, and children. With additional costs, the medical cover can be extended to the parents as well. Without a second thought, grab them as it can also help save tax under Section 80D and Section 80C.