Financial Life & Investment at 30? Folks! It’s time to wake-up
You are rocking in your early 20s, you have just passed your university and congratulations! you have been placed in a corporate through campus placement. You are curious to join your first job and have already made plans of spending your first salary; Oh! Not your first salary, but your couple of salaries. It is not long enough that you realized you are in your 30s and you have not saved or invested any amount of money during your professional life. Are you not thinking about future circumstances? Don’t worry, we have got you covered; given below are some of the reasons stating why at the 30s you get a wake-up call for ‘investing’. Here:
- Working Under Pressure: Like always, by the time you have turned 30, you might be married with a child too. This is where you realize there are certain mouths to feed and take care of. The responsibilities are good enough to make you feel under pressure. There are stages of life:
- : Marriage: No limit for the expenses (marriage and honeymoon), purchasing of furniture to switch from bachelor apartment into a family home, and purchasing of consumer durables.
- : Pregnancy and Delivery: Hospitalization expenses, doctor fees, other expenses associated with child birth, pregnancy, and celebration/rituals.
- : Parenthood: Expenses of baby care products, baby food, and nanny; 1st birthday celebration, and admission to a day care.
Like said, when you are 30, you realize that you have not saved enough to meet your future responsibilities (stated above). At this point, either you realize or regret.
- Short-Term Goals vs Long-Term Goals: When you were enjoying your early 20s, school, college, you must be chilling out the whole day and end up studying at the last moment, right? Sometimes, in your professional career too, you have the habit of leaving your work till the last day of submission. The truth states, in your 20s your financial goals or responsibilities are short term and small like a down payment of a vehicle, a road trip to Leh, Vacation to Europe or it can be purchasing a Lazy Boy chair for your weekend binge watching. These short-term elements can be achieved by saving diligently every month. However, when you are touching down 30, you realize that this short work shall not continue furthermore. Think about this!
- An Eye-opener: The reality check states, no one likes to lose money; in the same way the life teaches you that without any financial help or planning nothing will make you feel relaxed and save for the future troubles.
- Your Net Worth: At 30, you would have been working with full power and more than a decade. When you calculate that in 5 years of your professional life how much you have invested or saved after putting up 10–13 hours every day. Definitely! To NIL. You suddenly realize how much you have worked and earned, but at the end ‘no saving’; everything goes to vain. Our sympathy!
- Time for an Emergency Corpus: Having an emergency corpus will happily manage your finances related to any job loss, accidents, illness, etc. Likewise, the corpus should help you survive through the financial storm. A WORD: It is said that four to six months (at-least) salary should be kept aside for any kind of emergency.
- A Retirement Corpus: Most people think that 30 is too early to start preparing for the retirement; you should start taking baby steps to save enough for your retirement. For this, you start investing in SIP (Mutual Fund) with a low amount — 500 INR — 1000 INR every month. This will help you plan your goals, thus making your future safe, happy and healthy.
Readers! It’s time to retire rich!
*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.