There is no reason to fear the age of 30 if you prepare for this milestone wisely. Ask yourself questions about your job. Do you love what you do? Is your paycheque increasing at a favorable pace?
If you know where you stand in your career, you can determine the level of financial comfort you may want when you put your feet up. To complete your ambitious goals in life, you must reach specific financial goals before turning 30. What matters is how you begin establishing yourself.
You can begin planning and investing early in schemes that will benefit you in your later stages of life, such as systematic investment planningor SIP, mutual funds, and equities.
Here’s what all you can do to be financially strong before you turn 30:
Control Your Expenses
A thumb rule for controlling your expenses is – If you are paying for your expenses out of your savings, put it down. Impulse spending can decrease your savings effectively and is often a waste of money. Irresponsible spending will only make your dream goals shift further apart and hard to accomplish. So, avoid indulging in unnecessary shopping for a worry-free future.
Instead, create a budget and build a strategy to achieve your financial goals.
Establish Emergency Funds
One way to ensure a financially secure future is to have enough funds set aside to cover six to twelve months of your expenses. This fund will be useful to cover up monthly payments and debt repayments in case of unforeseen events, such as a medical condition or loss of job.
Also, life becomes more complicated with kids, relationships, and other career moves. Maintaining an emergency fund will make it easier for you to keep moving forward.
Kickstart Your Mutual Funds Investment Journey
It is vital to get comfortable with investing your money in mutual funds, preferably as soon as you start earning. Mutual funds are a great investment option for first-time investors as it requires no experience. This way, you will get to learn how to balance and allocate your investments wisely.SIP is one such tool that helps you regularly invest in mutual funds schemes.
Some of the advantages of a mutual fund’s investment include advanced portfolio management, dividend reinvestment, risk reduction, convenience, and fair pricing. Also, you can use SIP calculator to determine your SIP amount.
Avoid Unnecessary Debts
If you’re still deep in high-interest debts while you are nearing your 30’s, now is the perfect time to dig your way out. You must take steps to clear them up. Paying off your debts makes achieving financial goals and saving money easier. You will also ensure an astress-free future once you have no debts left to be repaid.
Plan for Your Future Goals The Right Way
Many people in their 30’s lack the right financial planning skills to support their expenses or achieve life goals. So, it would be good for you to develop sound financial habits from your 20’s itself. It will help you manage your credit well and give you time to establish financial stability. Sticking to a monthly budget helps resolve half the economic problems that may come your way.
There is a wide variety of ways one can follow to set your finances right and live a worry-free life. Alongside, a wise investment plan, be it related to investing in SIP or FDs can help you get significant returns in the future.