You Need to Invest These 5 Funds Before Turning 30

Kholiq Ashidiq    November 15, 2023   

Turning 30 is a big milestone for many people. After the carefree beginning of your 20s, where you graduate and get your first job, to your mid-20s, where you start to live a less important life, you come to this stage and a mature person. A wife or even a child may be a part of your life, which also means responsibility.

You Need to Invest These 5 Funds Before Turning 30

This also means that you need to start thinking about how to use your money to ensure that you can achieve what you want and have a good future. If you've been on this journey, that's awesome. And if not, don't worry, it's never too late. The point is to start.

Here are some things you should start doing before you reach your 30s

1) Start investing for long-term goals 

By the time you reach 30, most of you have been working for a few years and have a good salary. You can save some of it by keeping it in low-cost FDs and RDs. 

But saving money is not the same as investing. If you want to make sure that you can achieve your goals - whether it's buying a house, having a good retirement, getting the car of your dreams or just getting rich, you need to start investing in the right place. has strong growth opportunities.

Mutual funds are one of the best ways to do this. You can start SIP every month and the amount will be automatically deposited every month. SIP not only helps to bring discipline in investing and ensures that you can start small, test the waters and increase the income. Even if you have many goals and not enough money to save, the key is to prioritize. One goal you shouldn't delay in starting to save for is retirement. Most of the time, we ignore it, because our car or house is more attractive. But if you don't start now, building a good retirement corpus can be overwhelming.

2) Free yourself from your debt 

The debt we are talking about is the debt you would have incurred to support your lifestyle. It could be a personal loan you took for a vacation or a credit card EMI you paid for a smart phone. Not only are these types of loans more expensive, but the purchase loses value, so it's a double whammy. On the other hand, a home loan is accepted because you have bought a property that will appreciate, this appreciation can cover the interest payments. So, before you start investing, you need to make sure that the loan has been repaid.

3) Get a good term insurance policy 

Insurance is something that many people forget or don't give much importance to. A term insurance policy is important to protect your family members against any financial problems that may arise in the event of your sudden death. Buying it before you reach the age of 30 will mean lower premium payments and extended cover benefits. You can get Rs.1 crore cover as low as Rs 8,608 (per annum). In addition, the amount you pay allows you to save tax under article 80 C.

4) Take out health insurance 

Escalating medical costs mean that one accident can wipe out all your savings. Even if your employer offers company health insurance, it may not be enough. You can read why here. So, get a private health insurance policy too, and if you have dependents, get a policy that covers everyone.

The cost is usually lower when you are under 30 and you can get full coverage. Also, this amount will help you save tax under section 80 D. 

5) Build an emergency fund 

We all know that life is unpredictable and having an emergency fund allows you to manage uncertainty quickly. Emergency funds help you cope with unexpected events, such as losing your job. To ensure that you have enough cash to face these adverse situations, build a company that can cover 6-9 months of expenses (including EMIs). Also, make sure you don't tap your emergency fund for other financial needs. Therefore, it is better not to keep them in your bank account.

Conclusion 

It's easy to feel overwhelmed when it comes to figuring out the best way to manage your money. After all, we are not taught this anywhere - not in school, not in university, not in our workplace. But you must not ignore it if you want to succeed in life. 

And there is a solution that makes it all very easy. ETMONEY was designed to take the stress out of money management. So download it now and see how you can manage and increase your income without hesitation.