11 Financial Rules for Every 30 Year Old
As you reach this crucial decade of your life, it is important that you get more careful about your health, your finances, your relationships, and your overall happiness. By the time you are 30, you are earning good, you spent most of your earnings on parties when you were 25- 28. But now is the time you need to start taking a few conscious financial decisions that will be beneficial for you in the longer run when you hit the age of retirement.
Here are 11 financial rules that every 30 years old must swear by:
1. Buy Health Insurance
As you are getting older, it's time to think about your health and the ailments you might face in the longer run and get yourself a health insurance policy. It's good if you are already careful about your health but a health insurance becomes mandatory once you are 30, especially if you have kids.
2. Life Insurance for Family
If you are the bread earner of your family and have dependents on you, it's wise to provide for your family with a life insurance. Figure out how much insurance you need to cover your family for, depending on your overall lifestyle and the number of dependents.
3. Protect Your Financial Assets
By the time you are 30, you must have accumulated quite a few valuable things like a nice car and a big house. Hence, it's wise to get your property insured. And if you are living on rent, get a renter’s insurance.
4. Invest wisely in Depreciable Assets
You need a car to commute to your workplace. If that’s the only purpose of your car and if public transport in your area is not too good, it’s good to have a car. But a brand new car? Not needed!
5. Value Your Time
As they rightly say, “Time is Money”. Value your time and figure out ways to utilize it well and earn more efficiently. And if need be, let others take care of the mundane tasks that are taking your time.
6. Look for Good Deals
You have put in hard work to earn all the money. So, when it's time to splurge, try and get a good value or look out for good deals to shop, whereby you get the best service or product in a lower price.
7. Increase Your Emergency Fund
As you grow older, having just one month’s salary as emergency fund won't suffice. You have more obligations and responsibilities now. It should be nothing less than 6 months of your salary, but an ideal emergency fund at 30 would be a year’s salary.
8. Pay off High-interest Debts
Early 30s is the right time to clear off all your high-interest debts and save that interest amount in building a retirement plan.
9. Evaluate Your Financial Progress
When in your 30s, you can better evaluate where you are, the mistakes you have made and how to reach your financial goals. Evaluate your financial progress so far and make necessary changes.
10. Plan for the Costs of Children
If you are planning a family or already have one, plan for the costs that children bring with them. As they grow older, their expenses also grow, and its time to plan for that now.
11. Start Saving for Your Child’s College
Start planning and investing for your children’s education and higher studies now.