Financial Planning - You are in 30's
Business
- On Feb 20, 2025
- By Avinash Kumar
Financial Planning - You are in 30's
Live below your means and avoid lifestyle creep
In today's scenario, most of the families are nuclear, having 1 or 2 kids to nurture. Their expectation, needs, time to be spend with them etc. But the best thing today is mostly both partners are earning. It’s a good boost for the families’ financial stability. Now the reach for life essentials and luxuries both can be achieved. Rising age means rising responsibilities too. A lots of things are coming to your way like, your own “Me Time”, kids schooling, planning for kids education and marriage, choosing a right Term and health plan for mis-happening and misfortune. EMI’s of your car and house are still pending. Therefore, below are some points to consider in your Financial Planning for future.
As both Partners are earning:
People tend to start making more money, get married and have a dual income for the first time, and buy a home or have kids in their 30's, it's the decade when life can get more expensive, "Your 30's is a time when people can be enticed to spend the most money. Notable point here, is to "resist living a lifestyle you can't afford" to prevent yourself from making big financial mistakes that carry into the next decade. It's up to you to keep up - or increase - the savings pattern you started in your 20s.Buying a House. If you're planning to buy a house, you'll want to make smart mortgage choices and avoid becoming "house poor”. Most of the millionaires never purchased a home more than three times their annual income.
Family with Kids:
If you have kids, you'll also want to focus on maintaining your career and financial fluency. One parent may consider staying at home to raise children - if that's you, keep in mind these findings by Fortune in 2016: If the average Indian woman takes a break from her career for half a decade, she may lose opportunity to work further. I also stress on the importance of considering how you'll stay self-sufficient if you find yourself single with children. Your kid is your responsibility now, this is on us how you will give proper education and time.Some suggestions from our end
LIVE A DEBT FREE LIFE:
Track your income from the beginning, budgeting, and designating an amount for your disposable income to avoid excessive debt. Make credit cards less accessible by storing them in a safety deposit box or with a trusted family member so they cannot be used for impulse purchases.
RETIREMENT PLANNING:
Work with a Financial Planner and begin strategizing your long-term financial goals early in your career to ensure that you stay on-track.
Tax planning and retirement planning go hand-in-hand. Explore with your Financial Planner or tax consultant how you can shelter some of your income through retirement vehicles that help you save short term on your income taxes and long term for retirement.
“Think for the scenarios if your company lays off
you”,
What will you do then?
OTHER FINANCIAL GOALS:
Begin a savings plan for your children’s education. Even if you do not currently have children, take advantage of the power of compound interest by beginning a savings plan before children are born.
If you need to pay off debt or are trying to beef up your emergency or retirement funds, consider changes to your current lifestyle and surroundings that might help fund these goals.
If you have a closet full of designer clothing, bags, and shoes, liquidate them and apply those funds to your long-term goals.
If you are overextended by living in a home that is too large or in an area that is exceptionally expensive, consider how a move might improve both your short term and long term financial picture.
If you are living debt free, have planned well for emergencies, and have a firm handle on retirement planning, you may have other financial goals in mind. Would you like to start a business? Travel the world? Go back to school? Take a year off to paint or write a book? Consider the way, smart financial planning can help you accomplish any or all of these. Points