Write by Vikas for Personal Financial
tips
Turning in the age of 30, It’s a wakeup call for many people
that you are entering into a new phase of life where you have to take too many
important decisions that may affect your life in both of way good or bad. Either you get married or have kids or
planning for them.
Now we point out 9 most important Finance Decisions when you
turn 30 or before 30.
1.
Understand the a powerful word of Finance : Investment
We take 2 person as example
for his Financial behavior :- Praveen
and Sachin
Praveen starts investing Rs 10,000 every year at the age of
25 and stops at the age of 35, but does not withdraw
Sachin starts
investing Rs 10,000 every year at the age of 25 and stops at the age of 35, but
does not withdraw
Which person Make good amount of Money when they are both in
the age of 65?
As crazy as it may sound, Praveen will have 2.5 times the
amount Sachin has (1.28 Crores vs 46.5 lakhs), even though.
Sachin invested for 20 years more.
What happened in this
case is that for Praveen, money started compounding early, and earned interest,
which in turn generated further
interest, and this goes on. This is the true power of Investment. (Click
here to see the calculation sheet).
Expert Tip: Start investing today. Even if it’s just Rs
10,000 a year, it will compound to many times that amount by the time you
retire.
#2: Should have Own house or Keep renting?
So Many would like to have a Own house. This Question Must
ask for yourself Because you know yourself best that you need that one or keep
yourself on rented place?
Buy your own house is an emotional Decision But it’s make
logical when we are making discussion on it for a home loan. Understand the
purpose of owning house or living in a rented accommodation then choose a right
way. Because When you take a decision that will make a huge impact on your
financial planning.
3: Get insured
When you getting Insured yourself there is lots of think
keep in mind like Children’s Education, Marriage, Family Senior Citizens
responsibility or medical problem.
While we all wish it does not happen to us, life is created
such unexpected and unpredictable situation.
In the mean while Our insuring team plays a important role or its EMI.
Insurance is most recommended. The earlier you get a life
insurance, the lower the premiums and complications. And do not stop yourself
only on insurance also think about medical cost at that time you need to get
medical insurance to cover. your medical costs. Even if your employer gives you
a medical cover, take one additional to cover you and your entire family.
Choose Plans accordingly that helps you save tax under
Section 80D and Section 80C respectively.
Expert tip: Insurance is an expense and not an investment.
Don’t fall for money back plans that typically give you much lower returns for
your investments. When choosing life insurance, always opt for term insurance.
4: Fund Help you in emergency.
You Should keep some of Amout that which full fill your 3-6
months need including any EMI if you have. Make Shure you do not use that amout
While have an emergencies. And no, upgrading your hatchback to a sedan does not
count as a emergency.
5: You should be on right Career way.
Chances are, by the time you are 30, you would have switched
a couple of jobs. If you are not yet settled in a job (not a company, but a
line of work), you have to do some soul searching.
Find out what ticks with you and stick to it. Just because
you might have read about someone starting up and claiming that you should be
your own boss, doesn’t mean you can succeed at your own business.
Take calculated risks. Following your passion does not
guarantee that it can help you pay the bills. In all likelihood, the moment you
try to earn a living by following your passion, you’d probably starting liking
it less. Figure out what makes you happy
and helps you pay the bills. Then stick to it and follow a routine investment
plan to ensure you have enough savings to help you retire and do what you are
most passionate about (even if it means you have to keep spending money on it).
#6: Invest in yourself
There are two ways to get more money. One you are thrifty
and save as much as possible. Two, increase your income Because there are so
may external factor like rent, petrol prices rise others that will making money
by controlling expenses become difficult.
Expert View: Increase your income and investing in
yourself In the way learn new skills
that will help you get a promotion in your current job. Or maybe spend oney for
relaxing vacation that will help more efficient when you back to work.
#7: Plan for retirement
So many people are not prepared enough for retirement or
they miscalculate the amount of money the required at time of retirement or
start saving too late.
Don’t make that mistake so that will affect your kids future
or their expenses.
Start Planning for your retirement before you hit 30.
Earlier decisions gives you much better result.
#8: Become debt free
Become debt free when and what you are investing, buying,
Loans, EMI schemes Which more Indians than ever are under debt. Debt is
something that you need to get rid of before you turn 30 – or at least take
steps to minimize it.
When you got your bonus or hike in salary, instead of the
latest feature-packed mobile on EMI, try to pay your loans and become debt free
ASAP.
Expert tip: While becoming debt free is good, not all debt
is bad debt. Debt taken for purposes of creating a long term high value asset
(like starting a businesses or buying a reasonably priced home within your
budget) is OK.
#9: Plan for your children’s education & marriage
Children education & marriages are plays important role
in Financial decisions Especially for Indian Fat marriages .
Try to Save early as early possible for Children Education
Some of kids schools charge more then one lake for admission or a medical seat
in private college can be more then 60 lake or eng. college may charge about
13-15 lack same for B-schools. That’s how expensive good education has become.
Sure your Children future as much as you are on your pick of
your best time. That will help you a lot those are small things in life that are ones in a
lifetime moments.
Make sure you set a separate target for your children’s
marriage spending and work towards that goal. Since the cost of conducting a
marriage is increasing at a very rapid rate, traditional saving accounts like
bank FDs and RDs won’t work.
