The ideal investment strategy to reach your financial goals changes with age. Entering the 30s, your concerns about
starting a career or fulfilling a student loan transpire into more domestic matters. As a result, the 30s is an age
of moderately conservative investment planning that can provide for responsibilities that come with marriage, family
and other personal plans.
So, with changes happening on the personal front, you must prepare financially, keeping your personal, professional
and financial goals in mind. Here are some points that might help you financially plan and invest in your
Identifying Future Expenses
If you haven’t saved in your 20s while achieving higher studies and navigating an ideal career path, your 30s is a
good time to put away your money. You can start with a basic evaluation of your goals and the expenses that will
drive your investment plan. The future is indeed dynamic, and everything cannot be an accurate guess. However, a
close prediction, like buying a car and getting married or analysing your debts, can help lay the groundwork for
where you can invest.
Get Strategic About Your Debts
Once you have identified your future expenses, it is vital to sort out your debts. This is the age when you can
earn, save, invest and pay off your debts before getting into a new phase of life. There is no wrong or right
formula to clear debts. Everything rides on your financial situation. However, financial advisors suggest addressing
debts in the following order:
● Debt with a high-interest rate that is not deductible (e.g., credit cards).
● Debt that includes home or car loans.
● Tax-deductible debt with a high-interest rate (e.g., some student or business loans).
● Reasonable debt with a tax-deductible interest rate of 4% or less (e.g., many student loans and
Introducing Stability Into Asset Allocation
Asset allocation in your 30s could be planned to contribute to your retirement fund. You also have a good 30-40
years of active work life. Hence, taking risks is not entirely out of the window. Stocks, forex, and mutual funds
could form the majority of your investment plan.
However, since you may have loans to pay off or family expenses to take care of, choosing investment vehicles like
bonds (even if 20-30%) may help bring stability into the mix. Debt funds are also a form of stable investment that
may be fruitful in your 30s. Debt funds invest in less volatile money market securities such as corporate bonds,
treasury bills, and other instruments.
Start An Emergency Fund
When you start saving, you might want to begin with an emergency fund. The health of your finances depends on having
an emergency fund. If you don't have an emergency fund, you'll be liable to use your savings or credit cards to
cover unexpected expenses like home or car repairs. To start, you can set aside small amounts from your paycheck and
eventually set goals to increase this amount as you progress professionally. A general emergency fund is suggested
to equalise three months of your living expenses. In other cases, it could be for six months. The sum boils down to
your financial standpoint.
Get An Insurance Plan In Place
Most employers today provide some kind of health insurance. Regardless of whether your employer offers this, you
should still have a comprehensive insurance policy in place. Examine your employer's coverage and decide if you
require additional coverage to supplement it. If so, you should do it as soon as possible because insurance premiums
increase with age.
To summarise, financial decisions in your 30s can significantly shape your life. Even if you have been relaxed in
previous years or found it tough to save due to financial crunches, this is the time to make up. Stable and
long-term investments in your 30s could help you secure a better, safer future for yourself and your loved
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