Many people dont even consider any serious financial planning before 40 but i recommend you should start thinking about financial planning before 35 or i recommend even before 30 . If you start investing early it will help you in longer term and will make your life easier in your old days , here are some major financial decision you should take before turning 35

Insure yourself

Many people specially in india consider that whats gonna happen to us we are young and we will take insurance after 50 , this is simply a disaster decision of your life , you must opt for insurance as soon as you start earning , you may opt for 30-50 lakhs life insurance for mere 3000-4000 per year in term insurance which you may extract easily and it gives you a stability and security in life which will help in any misshaping

Life insurance is compulsory and so health insurance , you should take health insurance to insure that your family dont get burden by hospital expenses which are very very high nowdays so opt for health insurance is a must task

Invest early

Investing early is like gearing up for finale and practicing before years for a game , the more you practice the more you gain when game begins , same applies in investing the early you start , you may invest in FD or even in Mutual funds . There are so many options to invest nowdays , Many people has a myth that we should invest when we have spare money but i say invest and then spend your money . If earn 15000 per month and your expenses are 8000 per month then you may invest 4000 rs monthly in any mutual fund via SIP ( Systematic Investment Plan ) . Early investment gives you power of compounding which will enhance your ultimate wealth in longer term

Make an emergency fund

Making an emergency fund is very very important , your should save atleast 8-12 months of your expenses in your saving a/c or any other security which you can withdraw as soon as possible , ( Make an emergency fund before starts investing but take an insurance even before making an emergency fund )

Retirement Planning

Many youngsters feel that they have just started their career and why should they start planning their retirement now but its a very bad approach and you should start as soon as possible , its not wise to depend on your kids after retirement as nowdays no kid wants to keep their parent and you should be having a cushion to live your life if you dont find your kids as you were thinking and planing .

Save for your Child’s Education

While its recommend to invest and think about retirement it is highly recommend to think about your child’s education too , nowdays major studies are getting costlier day by day be it engineering , medical or any other degree . While there are many educational loans available for kids but it is not recommend to take loans on education as it may put child in pressure to pay the installment after his/her job . So its wise to invest a small amount every month or year for child’s education

Happy Investing

By marafat

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