Financial expert Charul Shah lists out the top 10 financial goals for men in their 30’s
‘My children are my retirement fund’ is a common notion in India. With families becoming nuclear, you should save adequately for your retirement fund. Those earning a steady salary do end up investing in EPF by default, but the amount is seldom enough. The lot that function off of a non-salaried income (Read: freelancers, business owners, etc) have to generate the amount for their retirement fund carefully because there’s no employer pension to fall back on. Being in your 30’s is a very important stage to review your retirement goals and take necessary steps towards building a fund to support. PPF and NPS are good options, in addition to investing directly in equities or real estate.
Your child’s higher education is one of the most important goals. Given the rising costs, you must anticipate inflation-adjusted costs to fund your child’s education. It would also be wise to start the education fund before the arrival of the child. One can invest in FDs, bonds, ETFs, mutual funds, stocks, etc. Avoid children policies offered by life insurance companies, as it is best to separate your insurance and investments.
It is likely that the investments made in your 20’s are done sans an overall strategy. Now would be a good time to review your existing investments and create a portfolio based on risk profile, goals and investment horizon.
FIXED MONTHLY SAVINGS
The traditional way to calculate savings is: IncomeExpense = Savings. However, with increasing expenses, it would be wise to decide upon a fixed amount you’d like to save and invest every month with a new formula of: Income-Saving = Expenses.
Identify the growth areas in your personal and professional life that you’d like to realise and make a plan to pursue knowledge-enhancement and skill-building programmes. Excelling in your work will make you love what you are doing.
It is also important to see that you do not go overboard in saving and investing for your future at the expense of not enjoying the present. As long as your important financial goals are being met, you can spend on taking a vacation, home renovation, etc to improve the quality of your life.
One of the most important questions in life is: what are we doing for others? The root of the word philanthropy is in ‘love for humanity’ and hence, it’s not something that you do after you have made a lot of money for yourself. Find everyday opportunities to carry out small acts of kindness for others and experience how it makes your life more fulfilling.
Most car owners take vehicle insurance because it’s compulsory and in the event of an accident are thankful for they get the cost of repair reimbursed. It’s very important to also ascertain the need for disability/accidental cover, home/office insurance, liability insurance, health insurance, critical insurance and take necessary precautions.
HOME SWEET HOME
Rule of thumb says that your home loan repayment amount should not exceed 30-40 per cent of your annual income. While in your early years it is common to live in a rental home till you establish your career and decide on a location you’d like to permanently live in; by your 30s, it is good to have already invested in a home that you love.
(The author is the Director of Greshma Wealth Advisors Pvt Ltd)
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