I am excited to talk to you today about what happens if you are a late starter when it comes to your investment and you are getting started at your 30s? What do you need to think about?
Let's dive in and talk about it.
The biggest thing is most of us in our 30s, its been a long path to get here. Chances are we have not invested to date because we did not have enough money, no stable job, did not know what to do after higher studies and we bounced around. May be we got stuck with some life events and unforeseen reasons. These kind of things lead people down a path where money and investing was a challenge between their 20s - 30s. Now we are in the 30s and know that it is time to get started.
Here is what you need to think about when you get started investing in your 30s.
Understanding your goals
The biggest thing you need to do is to decide on when you want to save, what life events are going to be important for you and what is really going to happen etc. The first step to addressing it is having an emergency fund of at least six months already saved should something happen to you because you have someone relying on you. You probably have a husband or wife, you have a child on the way etc. You could lose your job and you need to have at least six months emergency fund to live on
Organize your finances
You need to have a tool for setting up and viewing all your investments in a dashboard. In case if you are not organizing, you are adding more complexity to your investments to manage and view it. Kuvera.in is a good tool to track and monitor all your investments in one place. So make sure you get yourself financially organized.
Take care of your family
Make sure you have a will in place, life insurance, health insurance, personal accident insurance etc so that in case anything unforeseen happens to you your family can rely on it. If you have a family, these things are mandatory before you get started in investing and building wealth for the future.
Saving for the future
This is for deciding how much you need to save, how you want to save and set up a retirement plan.
Planning for the big events
Decide on what big events are going to happen and planning for them, because if they are not part of your plan, chances are that you are not prepared for them. So, are you going to get married? Do you want to have kids in your 30s? Is your sibling going to get married? Do you want to take a big vacation? What are these plans? These are essential questions you should ask yourself as you are building your financial moves for your 30s. This will help you to strike a balance and make sure you are achieving everything.
In your 30s, it can make sense to meet with a financial planner to discuss creating a financial plan if you do not feel comfortable building one by yourself. If the above steps of making a will, choosing life and health insurance after comparing the best suitable products cannot be done by yourself it really makes sense to approach a financial planner to put together a plan for you.
Way forward
The best order for most people to save for the future in their 30s is to first contribute towards an employee provident fund in addition to the mandatory contribution. This can be followed by starting a Systematic Investment Plan (SIP) to set up a retirement corpus. The biggest thing here is that you need to start. If you are in your 30s right now, get started and get your goals on paper.
No comments:
Post a Comment