1. Changing Spending Habits
By the age of 30, most people have got an idea of what they value in life, and what kind of lifestyle they want to lead in future.
People who change their spending habits and avoid wasting money on what they don’t need, are able to save and invest money for their bright future.
This means that it’s time to cut spending on stuff that is less important to you.
Sit down, and create a list of spending priorities and then, spend according to those priorities.
2. Buying Term and Health Insurance
Even if you are young and live a healthy lifestyle, there are reasons to have a health insurance. Medical emergencies can arrive anytime and to anybody. A good health cover can save your hard-earned money from draining out.
If you have kids and ageing parents, you must buy health insurance for them.
Buying a simple Term Insurance is a must when you have dependents. It should be bought at a young age to keep the premiums lower. It also keeps you worry-free in case of any mis-happening.
3. Creating plans for Retirement
Many people in their 30s or even 40s are yet to give a serious thought about their retired life and perform a retirement calculation. They are so busy ‘working’ today that they don’t want to think about the non-working days of retirement.
Now is the time for you to perform that calculation. Use the online calculators or contact your financial advisor to figure out how much corpus you need for a happy retired life, and what you need to do today to meet your goals later.
Don’t procrastinate. Make a plan today.
4. Diversify Your Income
Relying on just one job for your entire financial well-being can bring troubles. Try to cultivate income diversity with part-time jobs, investments, and other endeavors.
Diversifying your income through one or more part-time money-making jobs can be a good idea when you are young and work for longer hours. These part-time jobs can be anything that you love to do and monetize.
Your good investments also can bring you passive income where your money works for you and your future goals. For this we need to ‘save’ as well as ‘invest’ money with equal importance.
5. Getting Expert’s Help
As your finances become more complex, consider taking guidance from a financial planner. Whether you need help with tax saving, plotting a retirement course, or figuring out what insurance policy is best for you, consider working with a financial planner that has no conflicts of interest.
Unfortunately, most people assume financial planning services are reserved for individuals with very high net-worth.