There is never a bad time to review and make changes to your personal finances. When we step in our 30s, incorporating investment plan in our personal finances become imperative. Though it is recommended to start planning early in life, starting investment planning in your 30s means you still have time by your side.
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Investment planning helps you to plan your finances and deposit money systematically into different investment instruments to achieve your financial targets. Investment planning allows you to get maximum returns on your investments thus making the best use of your hard-earned money. Planning your investments is a life-lesson that can help you nurture financial discipline. Here are some best investment moves you can make in your 30s.
See Also: Types Of Investment Plans
When it comes to our dreams and long-term goals very few of us are able to achieve them by 30s. It’s a good time when you should start worrying about your financial goals and dreams in life.
At this age, you should think about how you want your future to look like and come up with a precise savings goal. Prioritise your goals and list the primary ones that can be achieved within a relatively shorter time. For example, purchasing a home can be achieved comparatively faster than saving for retirement.
Turn your thoughts into action by choosing the correct investment tools. Set aside a particular amount every month and make sure to make payments to these accounts as per their payment schedule. Stick to your financial resolution and remain dedicated to get the best results.
Life doesn’t always go as planned. You may face several emergencies in life like losing a job, a medical emergency or dealing with unplanned expenses. If you have not yet started saving for emergencies then start it right away.
It is recommended that you should save at least 6 months of expenses as your emergency fund to deal with unforeseen events. The most common way to create a contingency fund is to create a savings account or investing in liquid funds. A sufficient financial cushion will help you handle tough situations with ease.
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Diversifying your investments is the best way to maintain a healthy investment portfolio. People often end up saving all their money in a single type of investment. For example, saving all your money in a savings account or FDs will lower your returns from investments. Explore the other investment options and diversify your income into a stream of income-generating investment options like equities, , mutual funds, real estate and PPF etc.
Always remember to invest a portion of your savings in risk-free assets along with risky ones. This will allow you to balance the risk and the returns on your investment. You can enjoy diversified returns and save your investments from market risks or low returns.
While planning for the long-term you must consider every aspect of life and not get carried away by your emotion. Most people tend to delay saving for their retirement while fulfilling their family duties thus resulting in low retirement corpus. Though it is important to fund your child’s education and fulfil his/her requirements it is equally important to save for your retirement. Investing in retirement will help you lead a secure and financially independent retirement. You can take care of your medical expenses and you do not have to rely on others to look after you if you retire with a good retirement fund. The 30s is the best time to start a retirement planning account as you can create a good corpus and remain invested for long.
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While planning your investments reassess your insurance needs. If you are married (with or without kids) you must buy adequate health and life insurance coverage to safeguard your family in case of unfortunate events. Having adequate life insurance helps your family get financial support in case of your unfortunate demise. Similarly, health insurance allows you to take care of medical emergencies and avail the best treatment and care for your loved ones.
These tips will help you build a strong financial foundation for your future as well as enlighten your financial path. Life becomes easier for you if you have good financial management skills.
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