To ride the wave of 30s at ease, you must manage your finances wisely. Sound financial management can help secure your future and back you up in case of crisis.

Here are some ProTips to make the most of your 30s:

Re-design your budget

When you enter your 30s, there will be a lifestyle upgrade and changes in family commitments. You might have kids, take on home loans or car loans, support your parents’ medical expenses, and more. Prioritize your spending, save, and invest accordingly.  Learn to allocate money towards all your priorities efficiently. You can make use of the My Money app to plan your budgeting, track your expenses, and monitor your assets.

Invest, invest and invest

The sooner you start, the better it is, and there is no small amount for investing. Cultivating a habit of investing early will help in wealth creation as the sum compounds and delivers returns over time.

There are numerous investment options to choose from. You can invest through a mix of equity – stocks, mutual funds, SIPs, and low-risk investment options like fixed deposits, recurring deposits, public provident funds, or national pension schemes.

Choose the right investment option that helps achieve your unique financial goals.

Create a contingency fund

Saving for a rainy day is an age-old concept that’s still very relevant for all of us today.

Several unplanned expenditures might need you to tap into your savings. Unexpected medical expenses, loss of money due to cyber theft, or vet expenses for your furry kids, are some instances that can possibly hamper your financial progress.

Keep aside an emergency fund that can sustain you for 6 months to mitigate these unforeseen situations.

Save for an early retirement

All of us aspire to own our time, but you need to earn and save enough to afford that luxury. The 30s is an excellent time to start planning for retirement. The sooner you start, the higher is the corpus available when you retire.

You can also invest in pension schemes such as New Pension Scheme or Atal Pension Yojana to take tax benefits under 80C of Income Tax Act,1961.

Ideally, save 15% or more of your monthly gross income towards a retirement fund.

Expand your Insurance coverage

As you advance from your 30s, insurance coverage that caters to you and your family’s medical needs becomes all the more important. The unprecedented covid crisis across the globe comes as a grave reminder of the importance of insurance cover in times of uncertainty.  Be it auto, health, or life insurance, getting yourself and your assets insured will empower you in adversity. Health and Life Insurance have the added benefit of reducing taxes under section 80D and 80C of the Income Tax Act, 1961.

Understand Tax Implications.

The 30s is an excellent time to take complete control of your taxes. Tax planning is an efficient tool to save money while complying with the laws of the land.  The Income Act, 1961 provides for various tax exemptions which will aid in reducing the tax liability. Make use of such exemptions via investments and claim deductions to reduce taxable income.

Paison ki Seedhi Baat

Take control of your finances in your 30s and secure your future financial and mental well-being. Managing finances doesn’t have to be complicated. A few financial moves can create a massive impact on your life.

Do remember, it’s never too late to start saving and investing!