In this article we talk about 5 important personal finance decisions that you need to take before you hit 30.
1. Start investing early on- Investing is an art and the earlier you learn about it, the better it is for your FINANCIAL health. The earlier you start investing, the more time your money has to grow. Investing as little as say Rs 1000 per month can help you compound for a much better future and help you save for the important decisions in the upcoming life
2. Emergency Fund- Make sure you have a backing of an emergency fund at your end at all times. The emergency fund can range from 3 to 6 months of your monthly expenses. Making sure that you have a cushion to rely on would help you make important decisions like change of job, planning for children’s education with more peace. Do not withdraw from this fund at any time except during emergencies– also, withdrawals for a new car or a mo-bike do not count as an emergency.
3. Set short term goals- Rather than setting long term goals, set yourself a series of short term goals which are easily measurable. Planning for the future can be pretty daunting as a lot can change from today to the next 30 years in your life. Setting measurable short-term goals would take care of achieving your future plans and needs. Short-term goals can range from paying back your student loans, getting a job that you love, investing in yourself by learning a new skill etc. Once you achieve one short-term goal, set another one that you need to achieve within a given period of time and so on.
4. Get that insurance- Life is very unpredictable and the least you can do is plan for your family’s well being in case that unpredictability shows up. There are so many types of life insurance plans available in the market today- term plans are highly recommended. And the sooner (at an early age) you get a policy; it’s more likely that you’ll get it at cheaper rates and premiums. Apart from life insurance, medical insurance is also need of the hour as medical expenses are on a rise and medical insurances help you plan for health hazards if any. Insurance is not an investment but an expense to safeguard your future, always think of it as a necessity and never fall for money back plans.
5. Plan for your children and their education- Affording children is not easy today. So, if you have already started a family or are looking into a possibility of the same, it is the right time to start investing for your child’s future needs especially education, which is becoming more and more expensive by the day. Making a financial plan is not easy, but there are tools that can help you reach your targets very safely and easily. Make sure you start SIPs for your children as early as possible so that by the time they want to get into their favourite colleges, FUNDING is not a problem!

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