Turning 30 is one of the most important milestones in every individual’s life. You move towards getting more independent and self-sufficient but amid this celebration financial planning and management are often overlooked. You might be planning to getting married or having kids or changing your current job or buying a new house but financial planning is not really a part of your list.
Before you cross the milestone of thirty there are some important decisions that should be on top priority on your list. In this blog, we will shed light on the top 5 decisions that you should make before you turn 30. Furthermore, we will be sharing some important tips and tricks that will help you to improve your financial stability and achieving your goals at an accelerated pace.
Getting the right Term Insurance
This might not appear to be the most important decision that you should make before thirty but it is as important as getting a job. The trail of life is uncertain and none of us are aware of what might come next; therefore, the right approach is to be well-prepared to counter the strokes of uncertainties. Now, this is where term insurance comes into the picture.
Term insurance plans are the most common and affordable form of insurance available in the UAE market. The plans provide high coverage at affordable rates of premiums that is one of the major reasons behind the popularity of these insurance policies. Most of the people by the age of 30 become a contributing member of the finances of the family. Some of the people have to take the responsibility of handling the expenses of their family solely.
In such a scenario, with the right term insurance, you can ensure that you and your loved ones are financially secure in case of any unforeseen event. Furthermore, the sum assured in case of term insurance is paid as a lump sum which might act as income replacement for the family to make ends meet during the financial crisis.
Building an Emergency Fund
As mentioned earlier life is an unexpected mystery that might take dangerous turns without any notice. In order to be prepared the first step is getting the right term insurance and the second step is building an emergency fund. Ideally, according to financial experts, your emergency fund should hold the 6-8-month worth of savings.
The main idea behind the emergency fund is that in case you suffer from a disease and are unable to work for six months or let’s say you lose your job due to inflation then this fund will take care of your and your family’s financial needs during the phases of financial instability. An important point to be kept in consideration while building an emergency fund is that the capital should be liquid as it will help you to immediately take care of expenses. Contrary to this, if your emergency fund comprises non-liquid assets you will first have to spend time and capital to liquidate it which is not a wise decision. Therefore, try and build an emergency fund with liquid funds and assets.
Investing your Savings
Investing your hard-earned savings is as important as earning it. Investing is the key to growing and multiplying capital to build a corpus for a secure future. The UAE investment market is diverse and I filled with a plethora of securities and vehicles that invest your capital to yield returns. The right approach to choosing the best-suited investment vehicle is by first assessing your appetite for handling and the kind of returns you are expecting.
Once you’ve chosen the type of investment vehicle all you need to do is start investing in closely observing the vehicle to understand and improve investment strategy for better returns in the future. You can go for savings bank account schemes, fixed deposits, stocks, bonds, SIP, mutual funds based on your needs and situation.
Take care of your Health and Get Health Insurance
Health should be your foremost priority at every stage of life but especially with growing age, you should lay even more emphasis on your health. The modern-day lifestyle and stress have led to a spike in the number of lifestyle disorders that are not bound by age and attack all age groups.
In order to be prepared against illnesses, it is important to get comprehensive health insurance that takes care of the finances in case any of the insured members of the policyholder is diagnosed with an illness or ailment. If you struggling with finances and it is difficult for you to get a health insurance plan start off slowly by getting a basic plan with low coverage that is available at lower premiums. It is always better to have less protection instead of nothing.
Planning for you Twilight Years
Retirement years of life are like a long-awaited vacation when you get all the time to pursue your hobbies, travel, spend time with your family, and simply doing what you love. However, in order to ensure peaceful retirement years, it is important to start planning even before you turn 30.
Yes, that’s right planning for your retirement is a long and hefty process that requires investment over the course of several years to build a corpus that will take care of your expenses in the financially unproductive years of life. The best way to plan for a comfortable retirement is by getting the right investment plan that will take care of your financial needs along with leaving a legacy for your loved ones and family.
In a Nutshell
Turning 30 is often accompanied by celebrations but amid the fun and joy do not forget planning for your future. With these 5 important decisions, you can make sure that your life is on the right track for the coming years and you are well-prepared for all the hurdles on the way.
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