Most Indians get married and settle down with a secure job by their late 20s. They have dreams of a bright future for themselves and their children. What they don’t realize is that smart investments should be made as early as possible so that benefits can be reaped later. The investments you make at the beginning of your career will have a big role to play in securing your financial future.
It is advisable to make financial decisions wisely after getting in touch with an expert. The goal of this article is to provide you with the necessary foundation to help you make the right decisions before you turn 30.
- Buy a term insurance plan
We live in a digital world and this is probably why a lot of people prefer to buy a term plan online. Take your time to choose the best term insurance plan for you. Note that not all plans may be available on an Aggregator’s site, so take time to search and visit individual company’s websites. Rely on a plan that can secure your family’s future in case of an untimely accident or death. Use a term insurance premium calculator to calculate the right amount to invest. Also, verify the insurance company’s claim settlement ratio before making the investment.
Also, remember, the sooner you buy, the cheaper it will be for you.
- Start a PPF account
A PPF account offers immense benefits because the interest earned each year is tax free. Most banks offering PPF accounts have a lock-in period of 15 years. One advantage of this account is the flexibility you get in choosing the amount you wish to spend each year. You can invest from Rs. 500 to a 1.5Lakhs each year.
- Set up an emergency fund
Nobody knows what’s in store for us tomorrow. It’s ideal to set aside some money that can be withdrawn at short notice. This money will be able to cover expenses that suddenly pop out of nowhere. Ideally, you should have at least 3 months of monthly expenses as the basic amount in your emergency fund. The best way to do this is by setting aside a certain amount of your salary every month.
- Take a health insurance policy to safeguard your family against health expenses
The best part about health insurance is that it is economical when you are younger. Get a health insurance policy before your 30s and stick by it for years. Your premium amount will reduce each year, especially if you don’t suffer from any major health ailments.
Some employees avoid taking a personal health policy. They assume that the policy offered by their company will suffice. Don’t make the same mistake!
- Start saving for future milestones
What are the future milestones your life will encounter? It could be a new house, a child’s education/marriage or even a foreign trip! Milestones vary from individual to individual. Just make sure you are aware about your milestones! Think hard and jot them down. Start saving for these milestones. It will help you fight the rising cost of expenses brought about by inflation.
Did you find this article useful? Use the insights to drive your investments forward.