​​30 Things To Do With Your Finances Before Turning 30 – Forbes

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What questions do you ask yourself when you are nearing 30 or when you think about your life post 30? How you foresee your future in your 30s depends on the financial planning you do while still in your twenties. Here are a few things you can financially accomplish before you hit that big milestone of your life, i.e., before you turn 30.

  1. It is the Best Time to Invest Long-term

    When you are about to touch 30, you are almost working for a few years, earning a decent salary. You could save but saving will not generate wealth. If you want to make sure you achieve your long-term financial goals, investing in a long-term instrument is the best way. Investing can be intimidating, to begin with, considering the risk involved and knowledge required, but you start by aligning it with your future financial goals.
  1. Get Rid of Debt

    We all know how expensive colleges get or that education loan, so this is the best time to pay them off. By the time you turn thirty, you can be debt-free. Getting rid of your debts can make things lighter for you in your thirties and provide you with the bandwidth to attain other financial commitments.
  1. Get a Term Insurance

    Insurance is an essential aspect of financial stability, and most people tend to take it lightly. Life can be uncertain and getting term insurance might just allow you to secure your financial future to a certain extent. Getting insured early on will develop a deeper understanding of how insurance can secure your future.
  1. Get a Health Insurance

    Without good health, it wouldn’t be possible to attain other goals in life. So do not forget your healthcare insurance or forgo it for other financial plans. Moreover, healthcare is quite expensive today, so you might want to be backed up on it.
  1. Have an Emergency Fund

    Emergencies often happen when we least expect them, and unfortunately, without planning, you can be caught off-guard. Life is unpredictable, and the Covid pandemic has proved it for all of us. So save up a little towards your emergency fund to fill in the gaps for the unforeseeable situations in life.
  1. Begin Contributions to a Retirement Account

    Your retirement may seem too far to start now. But starting in your 20s can come with many benefits and saving for retirement can come by your side as a positive.
  1. It’s Time to Set Aside Money for Big Purchases

    You can go ahead and think big now. If you plan early, gone would be the days when you had to save up to go on a local trip or an expensive luxury. You can start looking into purchases like getting your new home and saving for bigger goals.
  1. Find the Best Method to Track your Expenses

    You might feel like you know where your money is going, but do you really know? Tracking every expense might seem like an unnecessary effort, but it can work wonders in helping you save and avoid overspending. Some useful apps help you track your expenses efficiently and smartly manage your finances.
  1. Consider a Side Hustle

    Living on a budget and being frugal with your money can be an effective way to save, but what about growing your wealth apart from investing? But that can’t always be the case. So, take up a side hustle while you still can. It can be an excellent way to bring in additional money.
  1. Keep an Eye on that Credit Score

    A good credit score can go a long way in case you require financial help, so be mindful of your credit score. Building a healthy credit score will benefit you in the long term when your financial need requires you to loan.
  1. Build an Automatic Payment System

    Now you know money flows in every month, so let your payments be automatic, where you do not have to go around every month to make them.
  1. Invest in Yourself

    Investing in yourself, self-educating, taking up a class, looking into health can grow on you and make the best out of you and your finances in the future.
  1. Create a Credible Career Picture

    Building a solid interpersonal picture at the workplace can take you places. It enables the development of trust and respect – the two components that improve a person’s position in an organization and, consequently, financial well-being long into their 30s and 40s.
  1. Master your Finances

    By the age of thirty, you need to be well-versed in all aspects of personal finance. This involves understanding different avenues to park your money and judiciously aligning money requirements with returns.
  1. Work-Life Balance is Must

    Along with understanding the importance of earning money while you’re young, you must know how to balance work and life. Learning to draw the boundary between work and personal life is beneficial to one’s physical and mental health. A healthy lifestyle keeps an individual from being burnt out later.
  1. It is Time to Be Self-reliant

    By your mid-20s, you should strive to leave your parents’ house and live independently. It allows you to develop a perspective on good financial management and provides room to work things out independently.
  1. You Can Take Chances

    Being ready to be thirty does not mean you need to be risk-averse. The younger you are, the greater risk appetite you have, like investing in the stock market, starting your own business, or moving abroad.
  1. Build a Budget

    Planning your finances makes it easier to save and spend in the future. Note things down; how much you want to spend and how much you have to spend gives you a sense not to overspend your income. When you have an amount set aside for expenses, you will notice you are saving money without thinking much about it.
  1. Price Spree Shopping

    It is easy to buy the first thing you see or even just indulge in a shopping spree, but it’s better to remain frugal by shopping on a fixed budget. Such as taking up the job of finding lower renters’ commission agencies, big discounts, insurance with more features, stockbrokers with lesser commission rates, etc.
  1. Utilize Cash Backs

    There are plenty of apps today that offer cashback. It might seem like something small, but when you look at how much you spend every month, it can turn out to be a considerable saving.
  1. Put Impulse Spending on a Hold

    Impulse spending can put your investments and savings at risk and usually prove to be a waste of money. When you spend impulsively, you would probably be buying things you do not need and would not use.
  1. Learn How Inflation Works

    If you are only saving under your mattress, you do not know how inflation could hit you. The value of money depreciates with time. You need to learn how inflation works and understand how it can affect your finances.
  1. Learn to do your Taxes

    Taxes are unavoidable, and you will have to pay them for the rest of your life. Unless your taxes are complicated, hiring a professional is typically unnecessary. So the best thing you can do is to learn to do them by yourself. 
  1. Know What Kind of Accounts to Use

    Each account will be best suited for a different purpose. A savings account that offers high interest rates as opposed to others, money market accounts, or breakable certificates of deposit (CDs) are ideal if you are putting money aside that you could need, such as funds for an emergency or an expense you’ll have in the next two years.
  1. Try to Diversify

    Diversification entails not placing all of your eggs in a single basket. The goal is to reduce the risk. If you invest in things that do not move in the same direction, at the same time, or at the same pace, then you potentially reduce your chances of losing all of your money.
  1. Measure your Return on Investments (RoI)

    The amount you make or lose in relation to the amount invested is the return on investment. Divide the amount you made on an investment by the cost of the investment to determine RoI. Following this, you can assess how much you will get on maturity.
  1. Analyze your Risk Appetite

    Often, the case is that the higher the risk, the higher the returns, whereas low-risk options don’t offer as much but can be a safer investment route. Make an informed choice about how much risk you’re willing to accept.
  1. Know How Much You Are Charged as Fees

    Some investments include nominal fees but also provide a good return on investment. So before you start, learn to evaluate them to reach your net earnings.
  1. Have Some Liquid Assets

In a nutshell, the liquidity of an asset is how rapidly it can be converted into cash. Cash is the most liquid asset while selling real estate is an illiquid asset. Other assets, such as certificates of deposit, fall in the middle since there may be a penalty for selling soon, or you may have to sell at a price less than face value. In the event of an emergency, you will require liquid assets.

  1. Plan How to Use your Money

Planning your finances can ensure you save, invest and create wealth in your 20s for a secure life. Living life recklessly in your 20s could be fun but discipline is key if you want to build your financial future.

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Harsh Jain heads growth and business at Groww. Prior to Groww, Harsh was part of the product team at Flipkart. Jain holds a B-Tech in Electrical Engineering and a Masters in Information and Communication Engineering from IIT Delhi. He pursued his MBA in product management and marketing from UCLA Anderson School of Management.

Aashika is the India Editor for Forbes Advisor. Her 13-year business and finance journalism stint has led her to report, write, edit and lead teams covering public investing, private investing and personal investing both in India and overseas. She has previously worked at CNBC-TV18, Thomson Reuters, The Economic Times and Entrepreneur.