Last Updated on January 29, 2020 by Gopal Gidwani
Every individual might have specific aspirations in life. Whether you have personal or career-centric goals, you should have financial backup to achieve it. To turn your dreams into reality, you might strive hard right after you start earning. Since your annual income can be low initially, you might not be able to achieve your dreams at a young age. However, see to it that you get to achieve your goals before you step into your 30s.
When you are young, you might have many things on your bucket list. However, you should focus on accomplishing the targets, which can help you live a secure future. Here is the list of top 13 things you should aim at accomplishing before turning 30. Let’s go through each goal in detail that can help you head in the right direction.
1) Start savings early
As an Indian, savings can be an essential part of your life. According to a report, many Indians have started saving regularly to live a financially stable future. After you get your first salary, you can deposit a specific proportion of your money every month in your bank accounts. As your career progresses, you can increase the savings amount and build a larger corpus for your bright future.
2) Consider long-term investments
Although investing can be risky, it can be an imperative part of your financial planning. Investing can not only help you to earn returns on investment but also grow your hard-earned savings. Therefore, you should look for long-term investment, which can let you build a substantial corpus over the due course. A Unit Linked Insurance Plan is a long-term investment option, which has a lock-in period of five years.
3) Purchase life insurance
Life insurance policies are protection plans, which can cover your loved ones financially in your absence. The primary aim of life insurance policies is to offer financial protection to your family members after your demise. Hence, it can offer a pay out called death benefit to your nominees when you are not around to look after them.
4) Identify post-retirement goals
Today, retirement might not be about only living a simple life. You might aim to retire early to fulfil your post-retirement goals such as traveling, starting your business organization, etc. Before you start your retirement planning, you should identify your post-retirement goals that can align your plan accordingly.
5) Have a retirement plan
Although retirement might seem miles away, it is imperative to start your retirement planning with the right pension plan at a young age. When you buy a pension plan at a young age, you can be able to build a relatively high corpus for your retirement. Look for a pension plan with a long lock-in period since it can ensure the growth of your funds throughout the tenure.
6) Build a social network
It is essential to have a strong interpersonal network at work. Building a social connection with your colleagues can allow you to gain trust and earn respect within your organization. Moreover, your social network can help you to boost your intellect.
7) Clear past liabilities
It can be natural to take loans or credits from the market to fulfil your dreams at a young age. For instance, you might take a travel loan to explore new cities, business loan to start a business venture or a student loan to study abroad. If you have past debts, you should pay it off before you reach your retirement period to avoid financial burden when the flow of your professional income stops.
8) Begin tax planning
Taxes can be an inevitable part of your life after you start earning. Rather than avoiding tax payments, you should begin the tax planning at a young age. The primary idea of tax planning is to increase tax-efficiency. To reduce your tax liability, you should look for tax-saving investment options like a Unit Linked Insurance Plan (ULIP), National Pension Scheme (NPS), Life Insurance (LI), and so on.
9) Invest in capital markets
Many of you might fear to invest in the capital market due to the involvement of market risks. However, capital market has the potential to give high returns on investment. Therefore, you should invest in the capital market at a young age since you can afford market risks, and you might have fewer financial responsibilities. If you are unaware of how to invest money, you should seek professional help to do so.
10) Be financially independent
As a working professional, you might aim for financial independence from the time you start earning. A financially independent life can help you to live life on your own terms without any source of income. However, you should accumulate your hard-earned savings in advance during your active working years to ensure you don’t have to depend on any other individual financially in the future.
11) Balance your social and work-life
During your active working years, you might put in your extra efforts without worrying about your physical health to prove your mettle. However, you should learn how to maintain a balance between your social and work life to ensure that you lead a healthy lifestyle. It can avoid physical burnout as well as a financial burden.
12) Define your boundaries
Setting boundaries can help you to build a healthy environment for you. When you define your boundaries, you might not be compelled to do something that is not good for you. That way, you can attain peace of mind and not be worried about disappointing others.
13) Create a strong career background
As a young adult, you might hold your career at the highest regard. When you are young, you might go that extra mile to ensure that you build a stable career for the future as well as scale the career ladder faster. That way, you can not only enhance your current financial situation but also safeguard your future.
To conclude, your 30s can be one of the most crucial milestones of your life. In your 30s, you might have increased the financial responsibilities of your spouse or your children. After you cross your 30s, it may become more challenging to accomplish your unfulfilled dreams. Therefore, see to it that you plan your finances in advance to meet your life goals before turning 30.