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Once you enter your 30s your career and life starts to stabilize, but your responsibilities grow tremendously. Career growth implies increased earning and also greater responsibility. At the same time, there is a good chance that you also have a family of your own and children who are dependent on you.
Your changed circumstances and responsibilities will now require a new set of financial goals. Long term planning becomes critical at this stage and you should give thought to retirement plans like the national pension scheme. Every individual has different objectives and these tips can help you plan for different situations.
1. Emergency Funds
If you do not have an emergency fund yet, it would be wise for you to start immediately. If you lose your job due to an injury or layoff, you need to have sufficient reserves to at least manage your living expenses for 6 months. This gives you the peace of mind that you will be able to meet your responsibilities, while searching for another job.
2. Paying Non-Mortgage Debt
Keeping your non-mortgage debt like credit card bills to the minimum is crucial. Reduce your expenses, try to earn through other sources, and increase your savings by investing in the best pension plans in India.
3. Increase retirement savings
If you don’t have a retirement account, it may be a good idea to check the national pension scheme. While you focus on reducing your debt obligations, it is recommended that you save at least 15% of your income by investing in some of the best pension plans in India. Experts recommend increasing this to 20%, to ensure that you remain financially independent during your golden years. To get more information you should ask your financial adviser for new pension scheme details.
4. Plan Your Estate
As unpleasant as the thought may be, we are all mortal and you need to plan for your demise. At that time your estate has to be distributed among the beneficiaries. To avoid complications and disputes among your beneficiaries it is necessary for you to plan your estate through trusts or wills. A will can also help with medical decisions that need to be made, when you are not in a position to give or withhold consent.
5. Include Term Plans
During your 30s, you need to build the robust foundation that ensures the financial security of your family. Have your thought about what would happen to them if you were to suffer an accident or illness that results in disability or death? Purchasing a term insurance plan, along with the national pension scheme is advisable. These plans are affordable when compared to traditional policies and you do not have to avoid insurance coverage because of the higher costs.
6. Do Not Cash Out
Many people who move their jobs cash out of the best pension plans in India. This is not financially prudent. By doing so, you will lose on building a significant corpus that can secure financial independence when you retire.
7. Hire an Expert
If you find financial planning complex or do not understand what is national pension scheme, consider hiring a financial expert. The skills of an expert will come in handy not just with retirement and pension plans, but also with tax savings and other financial planning aspects. You will also get information on any new pension scheme details as soon as such data is available.
Following these simple tips should put you in a better position and will help you to secure future that is financially stable. This will not just help you, when you eventually retire, but it will also help your family. Calculate & estimate your tax saving options with NPS Calculator.
Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.