9 Financial Tips for you When you turn in the age of 30

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.