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Financial Planning for 30-Somethings: 5 Things to Do

In your thirties your financial goals and requirements may change drastically than what they were in your twenties when you just started your career. In your thirties you will most likely be married and will have a family to take care of. Any long term financial goal and planning for that goal will now include the well being of not just you but also your family. So with all these new responsibilities what should you do to secure the financial future of you and your family?

Here are 5 things you should take care of.

1. Start Planning for your family

During your bachelor days you would have lived easily in a PG or with friends in rented apartments. But when you have a family, one of the foremost things you need to consider is deciding on the financial implications of renting an apartment vs. buying one. Experts suggest that only if you live in a place where the real estate prices are not too high and if you plan to stay in that place for at least 5-6 years, you should consider buying a house. Otherwise, renting out a flat works out much better.

Other than house you should manage your monthly expenses judiciously and cut down on avoidable expenses (like dining out or movies). That is not to say that you should not enjoy life, but spend within your means.

Once you have taken care of the basics you should start planning for childcare, whether you have one yet or not.

2. Prepare for contingency

You never know what surprises life will throw at you and your family. So prepare for any surprise in advance. And insurance is the way to prepare for unforeseen future circumstances. Get life insurance for yourself and medical insurance for yourself and other members of your family. Life insurance and medical insurance are the first steps in preparing for future emergencies.

But what most people don’t realize is that they should take insurance cover for any major loans as well (like home loan). Any major liability can cripple the financial future of your loved ones if the earning member of the family dies.

3. Prepare for major milestones

There is no harm in dreaming big and wanting to have your own house or car. But none of those big dreams will materialize if you don’t plan for them from now. Start saving for these and other such milestones and make adequate investments for them.

4. Invest in different places

Diversifying your investment is the best thing you can do for securing your future. In a volatile economy, it’s not prudent to put all your investments in a single asset class. If you want to invest in stocks, then balance it out with some investment in safe investment tools like EPF and Government bonds.

You should clearly evaluate your risk appetite and make diversified investments in accordance with your financial goals. You should take professional advice from a certified investment advisor to make prudent investment decisions.

5. Prepare for Your child’s higher education

This is the right time to start a fund for your child’s college education. With higher education becoming costlier day by day, not planning for it can have disastrous consequences for your child’s future? You can delay buying a house or car but when your child is ready for college that cannot be delayed.

To secure your and your family’s future and to make the right investment decisions, you can avail of our financial planning services.

Moiz Choolawala
Moiz Choolawala
Moiz Choolawala is the founder of Plansmart and a SEBI Registered Investment Adviser. An MBA in Finance and Marketing Moiz is an experienced investment adviser and blogs about investments, personal finance, insurance planning and tax planning.

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