Some Financial Mistakes That Need to Avoid at The Age of 30
The 30s are an important phase in your life as it is a juncture where you have a stable job with financial dependents. While wise financial decisions in your 30s ensure a fortified future, rash decisions can be detrimental. With the easy availability of credit cards, it’s very easy to buy things that you want. However, large credit card dues can severely dent your credit score which in turn can make it difficult to procure loans later. Therefore, it’s important to keep these dues in check.
With financial dependents, you must have an effective plan that caters to their needs in case you are no longer there. A term life insurance plan is your most trusted financial instrument that hedges your family against financial insecurities in your absence. It is equally important to have a health insurance plan in your portfolio to mitigate risks of out-of-pocket expenses while dealing with a health crisis.
At the same time, it’s crucial to set up an emergency corpus to shield against sudden job loss or a temporary break in work due to an accident or a medical emergency. Fixed deposits and liquid mutual funds are some of the best investment schemes in India that can help you set up an emergency corpus. Equally important is to save and invest a small amount regularly for building a sizeable corpus for various goals in the short and long term.
You should also be planning for retirement when you are in your 30s. By investing in a mix of equity and debt instruments, you can build a large retirement corpus to take care of your needs when active income stops.
To know more about Financial Mistakes You Must Avoid When You Are In Your 30s read this article:
November 30th, 2018