(function(w, d, s, l, i) { w[l] = w[l] || []; w[l].push({ 'gtm.start': new Date().getTime(), event: 'gtm.js' }); var f = d.getElementsByTagName(s)[0], j = d.createElement(s), dl = l != 'dataLayer' ? '&l=' + l : ''; j.async = true; j.src = 'https://www.googletagmanager.com/gtm.js?id=' + i + dl; f.parentNode.insertBefore(j, f); })(window, document, 'script', 'dataLayer', 'GTM-MJSC3XL');

Posted on 2/2/2023 1:02:00 PM

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 30s.

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 mortgages).

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 ones.


An investor education initiative by ICICI Prudential Mutual Fund Visit www.icicipruamc.com/note to know more about the process to complete a one-time Know Your Customer (KYC) requirement to invest in Mutual Funds. Investors should only deal with registered Mutual Funds, details of which can be verified on the SEBI website http://www.sebi.gov.in/intermediaries.html For any queries, complaints & grievance redressal, investors may reach out to the AMCs and/or Investor Relations Officers. Additionally, investors may also lodge complaints on http://scores.gov.in if they are unsatisfied with the resolutions given by AMCs. SCORES portal facilitates you to lodge your complaint online with SEBI and subsequently view its status.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.

  • Did You Know?

    You can transact faster and enjoy more features on ICICI Pru AMC once you log in!

    Login Now
  • Need to talk?

    Call on our Toll free number 1800 222 999(BSNL/MTNL)

    or Get a call back

  • Follow Us

    The latest from ICICI Pru AMC, including our unique, industry-leading programs, conferences, reports, and special events.

Recommended fund