While there’s no reason to fear the big 3-0, we can tell you how to plan and be prepared for this milestone in your life. Here is your financial checklist.
Net worth review
Do the math and find out what you are worth in financial terms. How to do that? It’s easy. Here’s the formula:
Net worth = Total money + your assets – loans
Wondering why this is important? A quick calculation of your net worth only tells you if your finances are headed in the right direction.
Ask yourself these questions about your job. Do you enjoy what you do? Is your paycheque increasing at a decent pace? Review your skill set to check if you’ve been keeping up or falling behind.
Now, this is important because your career gives you a major portion (or all) of your income. If you know where you are in your career, you can estimate the level of financial comfort you may enjoy when you put your feet up.
Additional Reading: 5 Golden Rules of Investing
Have you checked the health-o-meter?
What is the scene with your medical expenses? How much are you spending on your health? We have to ask – do you have Health Insurance?
Do we really need to tell you why this is very important? Well, alright. You know how medical costs are going through the roof, right? Health-related expenses can be one of the biggest out-of-the-blue surprises you may be faced with. Be prepared for them. Secure your health today.
SOS! Emergency! Got those funds?
The most important question you’ll have to ask yourself is whether you’re prepared for any unexpected expenses. Have you got enough money salted away to take care of expenses for at least 3-6 months? More, the better, really. An emergency fund can come to your rescue if you ever need money in a hurry. Have you got yours?
Additional Reading: How To Build An Emergency Fund
Investments are important if you want to create wealth. Have you explored Mutual Funds? These are high-return investment options. It’s a good idea to have a balance between equity investments and traditional savings schemes like Fixed Deposits and Recurring Deposits.
Remember, with Mutual Funds, the earlier you begin your savings, the larger your total corpus will be. That’s the magic of compounding and rupee cost averaging working for you.
Regular saving early in your career can help you prepare for your golden years with a sufficient amount stashed away in your retirement fund.
So are you financially prepared to be 30?
Additional Reading: 10 Financial Mistakes You Will Regret At Age 50