When it comes to managing money, time is on your side in your 20s. But turning 30 is a significant milestone. It marks the end of a carefree stage of life and brings a phase when you must start thinking about your wedding or planning kids. In other words, this phase of your life brings in more responsibilities.
Another aspect that you need to start thinking about is the use of money towards achieving goals. Some individuals are on this path. They invest in mutual funds, buy a health insurance policy, focus on savings, etc. But if you have not started focusing on the must-have financial goals, here’s what you can start with.
- Invest for long-term goals
When you turn 30, you have a few years of work experience and earn a decent salary. There are chances that you have saved money or invested in some low return yielding fixed deposits or recurring deposits. However, investing is not the same as saving. To achieve your long-term financial goals, you need to put your money in places where there is a chance of high growth.
One of the best instruments to achieve your goals are equity mutual funds. You can start a monthly Systematic Investment Plan (SIP). SIP brings investing discipline and ensures that money is invested automatically every month. Today, goal-based investing is as easy as it can get with Moneyfy.
Every individual feels that there are many goals with not enough money to save. But you must know how to prioritize. A goal that requires the utmost attention is retirement. Many people ignore this financial goal as they focus on buying a car or owning a house. But if you don’t start early, it can get challenging for you to build a corpus for a comfortable retirement.
- Buy a good term insurance policy.
Another instrument that many individuals forget to invest in or give importance to is insurance. Term insurance helps to protect your dependent family members in the event of your sudden demise. If you buy it before you turn 30, you will need to pay a lesser premium. Moreover, you will receive extensive coverage benefits. The premium you pay on a term insurance policy provides tax benefits under Section 80 C.
- Get health insurance
As medical costs rise, one emergency can rip off all your savings. Your employer may offer a corporate health cover, but it may not be enough. It is a good idea to invest in a personal health insurance policy. Moreover, if you have dependent family members, you must choose a policy that offers coverage for all the family members.
Most people feel overwhelmed when it comes to deciding how to manage money. After all, there is no course that you can take to understand financial investments. Nevertheless, having financial goals and working towards them is crucial if you want to succeed in life. The Tata Capital Moneyfy app is your friend and guide that you can use to start your investing journey.