It is never too early too start planning your finances, its better you start early and reap the benefits of power of compounding.
Managing finances comes only with experience as each individuals financial commitments and earning capacity defers.
Individuals in 30s are financial stable and can bear some risk, long term investments can work well for them.
1) Importance of Inflation
Do not just blindly invest, understand the inflation rate and compare them with your financial goals. Say for example, just by merely putting your money in bank deposits will not help in reaching bigger goals.
Only, investing your money can fetch you higher returns. However, there is risk associated with such instruments.
2) Invest for Retirement
If you still have not planned for the retirement than do not delay further. Saving for retirement must be vital part of investment strategies.
Also read: Planning for Early Retirement? Here are Few Things to Consider
3) Seek help from Technology
Individuals in 30s are mostly tech friendly and one can make use of investing automatically by just subscribing for them. Such as investing regularly in Mutual Funds, SIP, Recurring deposits.
This will help you save unknowingly without much pain.
4) Get Insurance
It is must to have an insurance policy, which will help your family when you are not around.
Having a right insurance will help you in saving tax as well as save the expenses or else which you should shed from your pocket in case of accident or any such need.
5) Home Loan
If you are in higher tax bracket, home loan can save much of your tax and at the same time one can enjoy being in a own home.
6) Emergency Fund
At this stage, emergency fund is a must as any unexpected expense can make dent in the savings.
If you don't have emergency fund then you will be forced to break your FD or remove funds which will have impact on your future commitments and as of now banks levy penalty for premature withdrawal.
7) Make a Will
One may think , preparing Will at this age may be early. Yes, it may be, but life is uncertain.
When you are financially prepared why not this step? Creating a Will is not expensive, however, one can make changes when and so needed.