Before knowing the best ways to invest money in 30’s, I would like to share something I have heard often, “ Grind in your 20’s, Build in your 30’s and chill in your 40’s”.
30’s is an age where one suddenly feels grown up, responsible and feels the need to build because things start changing around. We realize the importance of a lot of things including Wealth Management. Future, security, family safety plays a whole different role in one’s life. The real question one in 30’s should ask is “Are we on the mercy of Credit Cards or Loans, just because we are salaried and EMI is an easy option?” According to my experience with my clients, I can say being prepared for the rest of life is hardly on their priority list. The big goals are laid ahead but many don’t know the best ways of investment. Let’s see what can be the best ways to invest money in 30’s :
- Prioritize your Goals: When you are in your 30’s, a lot of wishes, needs, wants, dreams lines up one after the other. Like, if you are newly married then vacations, holidays, buying a home, buying a car, etc are on the list or if you plan to have a baby then kids health, education, higher education, other expenses on the list. Many a times confusion takes up too much space in our minds and we end up sacrificing our needs for our wants and land up in a place realizing we should have planned it better. It is very necessary that you prioritize your goals into short term, medium term, and long-term goals and work out a plan accordingly.
- Invest in equities: Equities are the asset class which requires time to grow. The investment that you do in your 30’s are mostly long-term investments because you don’t have the immediate need for cash as the goals that are being set is again long term like kids education, buying a bigger house, starting your own business or financial freedom. So without worrying about the volatility or short-term movements in the market, one can be assured that 30’s is the right time to invest in equities. The time is the factor here and that is in your side so utilize it and make some good amount of returns to have a brighter tomorrow.
- Invest in Education: Young parents start thinking about their kids’ education and the amount of investment required for it. But it’s also the need of the hour that you start investing in yourself by growing your knowledge and by creating better opportunities for the future. With the kind of speed the development is happening all around, we need to gear up our game to match with or else the plan what we are making won’t be fruitful in the long run.
- Start SIPing: When one gets clarity on prioritizing their goals the next difficult thing one feels is lack of discipline. The best solution is to start doing systematic investment planning, this helps us to grow our investments according to our goals.
- Buy adequate covers: Enough insurance cover is also the best way to invest your money. Many of them feel paying a premium is a waste of money but protecting your savings from leaking is also a kind of investment. So here adequate cover means follow this thumb rule
Many of them feel paying a premium is a waste of money but protecting your savings from leaking is also a kind of investment. Click To Tweet
Brightest of the opportunities are visible only when you start having a clear vision about your goals. Best ways to invest money in the 30’s will eventually follow once you set your priorities right, just have a right financial planner with you.
For everything else, Money Anna is always there.