The thirties is when we are healthy and do not bother about the future. We love partying rather than focusing on saving for the future. This may continue until we realize that retirement is not very far. The fifties is the time most of us regret money mistakes made during your 30s. Act now to avoid future regrets.
Here are 3 big money mistakes most people make in their 30s.
- Not Starting SIP: Renu started a SIP investment a few years back. She invested INR 2,000 every month for 3 years and discontinued. However, she did not pull out the money from it. To her surprise, years later when she checked her account she found INR 2 lakh amount in her mutual fund account. Such is the power of compounding. You may regret later in your 50s for not making a SIP in your 30s. Below is a simple infographic on how the corpus has grown when a SIP is started early on in life.
Sticking To Traditional Savings Method: People place heavy emphasis on traditional ways of savings like FDs, RDs, etc. But, investing wisely in products or channels that offer handsome returns is essential to allow savings grow and meet the needs.Note: The values and returns cited above are approximate assumptions.
- Neglecting Insurances: Getting the insurance policies should be a part of your initial strategy to stay covered for the rest of the life. Buying insurance schemes when young helps save costs on premiums. Your insurance kitty ensures financial support during emergencies at the same time save taxes. However, assess your needs thoroughly before buying one.In conclusion, ensure that you to choose your investments wisely to make you more money. Avoid buying products that do not work big time. Create a good financial plan as per your goals, risk appetite, etc. For more personal finance advice, approach ArthaYantra – World’s only full-service robot advisory