Life begins at 30! 30 is the age when a person is still young and energetic but not as naive as their teenage. This is the age when most of the people having finished their education become stable in their job / profession and it is time to take up more and bigger responsibilities in life. This is the time of life when an individual starts turning their dreams into reality, dream like car, house, dream wedding, investments and what not. This is said to be the perfect time when anyone can grow financially as they have less responsibilities in this age. Responsibilities always grow with the age and more responsibilities means you need to be more financially stable and strong. 30 is probably that age when most of the people start their family. So, if you want a burden free future where you can enjoy and live happily with your family then you should take some steps today and try to secure your future financially for tomorrow.
Financial Milestones to Achieve before You Turn 30
- Be Financially Independent
By the time you turn 30, you should try to be financially independent of your parents, well settled into your career/profession and able to support yourself and your family financially. Your job is the most important financial asset which generates the most income for you. So, for all these things it is most important that by the age of 30 you should get well settled in your job and be earning well. By the time you are 30, there is much chance that your parent(s) would be retired by then and hence instead of just being financially independent you should be your parent’s financial support as well.
- Clear all Your Debts
Before you turn 30 you should try to clear all your debts you started in your youth. Many of us take education loan for our studies. You should always try to clear your loans and credit card bills before you turn 30. Once 30, your responsibilities are going to increase and while being under debt one can neither respond to their responsibilities nor they can enjoy their life in this way. Most importantly when one is debt free they can set their next financial goals such as purchasing a home or it can be saving for your children’s education.
- Create a good Credit History
A good credit history is very important. This is the one on which all your future borrowing depends. Whenever you would go to any bank or NBFC for a loan the first thing they will consider is your CIBIL score and if your CIBIL is not good your borrowing can become much difficult. To avoid any situation like this you need to build a good CIBIL and for that the only thing required is – be on time with your bills. Whether it is a loan EMI or your credit card bill or any utility bill. To build a good CIBIL you need to do this.
- Starting Saving for Your Retirement
Ideally, from the age of 25 onwards every individual should start saving for the retirement. It is said one-third of monthly salary is enough for their retirement nest if saved. However, if anyone finds themselves without a retirement plan even at 30, it is never too late to start now. Start saving now onwards and increase your contributions with the rises in your income or when you have already achieved more of your short-term financial goals. If one-third of monthly salary is too much for you then start at least with 5% of the monthly income towards your retirement fund.
- Start Investing
Savings is never enough for future. Money never grows by saving. Money grows when invested! You don’t know how much you are going to need in future, as it seldom happens that life goes exactly as planned. Nobody wishes bad for themselves, but it would be to have more money saved than the requirement. You can enjoy and live your life in a better way if you have more, which can happen only when you have money invested. There are multiple option available today for investments, like mutual funds, fixed deposits, recurring deposits and many more. Investment is the best way in which you can have a financially strong future. So, choose wisely which is the best investment option for you and start investing.
- Buy a Property
Buying a property/home is everyone’s dream and being in your 20’s is the perfect time to achieve this milestone as you have comparatively less responsibilities now. Nowadays purchasing a property needs lots of money which may be not possible for many of us to have in this age. Don’t get tensed if you are among one of them. It is not too late start saving today and have at least that much savings in your account from which you can do the down payment for your home as rest can be done by taking a home loan. The maximum tenure that you would get for a home loan is 30 years, and as your age grows this only going to reduce. Hence it would be wise to avail a home loan by the age of 30, so that you can enjoy the maximum tenure and the lowest EMI.
- Savings for Emergency
When you are young and healthy both, it’s easy to think optimistically about life and save some money. But according to a research on the retirement plan contribution by employees, young people tend to save less for their future. One should start saving for retirement in 20s only, but in addition to this you should also be prepared for bumps on the road. This includes anything from a broken bike/car to a necessary medical surgery. Always try to save and keep some emergency fund for situations like these and the situations you would never expect.
Achieving these financial milestones before turning 30 will definitely decrease your financial burden in future and you would be able to live your life in a better way, and turn your dreams into reality!
