When you are on your way to hit 30, things really start changing; you get more mature and approach life with more responsibilities. Also, you start thinking about the financial goals, health related-goals and more, at this significant momentous milestone. On top of it, if you have a spouse or a child, you spend a little time planning as well. We are here to help you out about what you should do with your hard-earned money for a better tomorrow.
Here are the top 5 things to achieve with your money before turning 30 so to make this journey great and memorable.
Achieve These Financial Goals Before 30
1. Become Debt Free
Since debt comes with interest, having lots of debt pulls you off financially. Pay off all your debts like credit cards, student loans, auto debts, or any other kind of debt.
Make a financial goal of paying off your debts that has a higher rate of interest. Once there are no debt obligations, your income will fund your lifestyle.
2. Get a Health Insurance Policy
COVID-19 pandemic made us realize how important it is to focus on our health in order to thrive in this unpredictable world. Individuals who lack sufficient health cover become the victim of loans later on. So, if you want to avoid all these, consider getting a health insurance policy to secure your and your loved one’s lives.
When you are below 30, the health insurance premium is generally less. It also comes with lots of comprehensive coverage benefits.
3. Create Emergency Funds
What’s the most critical step during financial planning? It’s creating emergency funds with 6-12 months of savings for any kind of emergencies. The goal of this emergency fund is to meet unforeseen emergencies like sudden job loss, medical bills, or unexpected expenses. For stable returns, make low-risk instrumental investments that offer ease of liquidity.
4. Invest For Long-Term Goals
This financial goal by 30 will bring more benefits, especially if you have a decent salary. You can keep up with low-return investments like RDs and FDs. Other than this, you can invest in equity mutual funds that will help you get your dream car, house, or good retirement later on.
Start a monthly SIP (Systematic Investment Plan) to invest automatically every month. With disciplined investing, you can increase the amount and test the water.
The one piece of advice that you should ponder upon is building a corpus of investment for a comfortable retirement over materialistic temptations.
5. Avoid Impulse Spending
Impulse spending is a waste of money. Before you spend your hard-earned money on things like pairs of pants, t-shirts, shoes, or taking a meal in restaurants, reflect on your goals.
A good rule of thumb would be to wait for a week when you get the temptation to do impulsive spending. This will help you understand whether you really want that thing or not.
These are some of the financial goals you should achieve by age 30 for a secure future.