Childhood was a period of fascination when the elders would influence our thoughts. But as you grew, you realized that growing up comes with its own set of agonies. In reality, you need to work hard, plan and execute things to make life bigger and better.
In India, the average age when adults would start working is 24 years. It is the age when you taste freedom but also the responsibilities of being a grown-up. Gradually, you aim for buying a car, home and secure yourself and family against odds of life. But this might seem like a colossal mountain to climb. Here are some pointers to help you ease the journey uphill.
Get rid-off the loans/debts
At the beginning of your career, you make good money with comparatively less amount of expenses. Hence, adopt a modest lifestyle and get rid of the debts/loans you may have taken. It will improve your financial status.
Create a fund for emergency savings
Managing an emergency when your funds are running low can prove to be a headache. It is better to be a visionary and understand the challenges that life can throw. Start creating a fund for emergency savings like a loss in business, etc.
Buy a Health Insurance policy
Health issues in life can arise at any time. You may have observed, that the challenges of work and lifestyle have caused illnesses like diabetes and thyroid. These diseases may not trouble you in the short run but can give birth to bigger health problems. It is wise to buy individual health insurance. It will help you at the time of hospitalization due to illness or accident.
Invest in SIP/Mutual Funds
Plan your monthly income and make a considerable amount of investment in SIPs or Mutual Funds. Though these are governed by market risks, they are convenient options for savings. No investment means no savings in today’s time. The cost of living is rising in all the cities. Hence, you need to be wise about making investments and multiplying your money.
Protect your parents
When you are earning, you must bear some responsibility towards your parents as well. Ageing and lifestyle may lead to heart ailments or other similar kinds of diseases. Such an illness would need treatment with hospitalization. It is better to save money and buy insurance for unexpected events like these. Buy health insurance for parents and protect yourself from the financial liabilities arising from medical emergencies. A health policy helps you to prevent a dent in your savings.
Begin Retirement Planning
Don’t think that below 30 years is early to make a plan for retirement. Keep aside a small amount of money every month to save. The every-day small savings will turn out to be a blessing in the future when you retire.
Start investing for property
If you live in a rented property, then below 30 is the correct age to invest in buying a home. You can start the instalments and by the time you retire from your job, you will have a place to live.
Save for Education
The improvements in the education facilities have also created a ripple effect of increasing its costs as well. You would want your child to get the best education. Saving for it as quickly as possible will be the wisest thing you can do.
Buy a vehicle
Mobility is important but you should not go extravagant on that. If you are earning Rs.50,000 and you buy a car worth Rs.15 lakhs, the average instalment will be Rs.15000. It is quite a big portion of your salary. Avoid taking such decisions as you will wipe off your savings.
A ready monthly budget plan
Think smart when the world is getting smarter. You should prepare a monthly budget plan for yourself. You are the best judge for your earnings and expenses. Going overboard on spending will be damaging to your financial situation.
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