Seven financial habits of highly effective 30 year olds...

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)

Age group of 30s is the crucial stage in one's life in terms of career and income generation. A properly planned 30s will lay a strong financial foundation for the future. The following are the seven financial habits of highly effective 30 year olds...

1. Keeping bare minimum in the savings bank account:

Savings bank account is just a temporary custodian for your money. One does not deserve interest @ 3.5% for the money invested and certainly not at this age. Look beyond this.

2. Rationalize and restructure debts:

20s is the time normally one spends and enjoys and in the process adds up the debt. 30s is to rationalize the debts which will go a long way in securing the future.

3. Definitely make a sound financial plan:

30s will be crucial to one's life as that's the galloping time for the career and income. A sound financial plan should include your dreams on retirement, children education, well being of children, acquiring homes, foreign holidays etc., Remember, starting earlier is not the better solution, it's the best solution...

4. Saving should not only be for Taxes:



Saving for taxes is important; but that's not the end of the story on financial planning. Thinking beyond tax saving will be key to the financial success during the 30s.

5.Increase in saving levels proportionate to the pay rise:

30s is the time for faster rise in careers and income levels. Adjusting the saving according to the rise in income is important. Starting earlier is not better, it is the best...

6. Saving Wisely, but Investing Intelligently:

Saving alone doesn't matter to one, but right kind of investing matters the most. 30s is the stage to explore above ordinary investment avenues for superior and fast track returns. for eg., investing in stocks in a diligent manner can work wonders over the long term.
 

7. Insuring self and the family in a comprehensive manner:


Life insurance is a powerful tool to protect you and your family's interests in the future. And the insurance cover is the legacy you leave behind for your family in your absence. So avail a comprehensive cover and upgrade the cover as you move in the income levels. It's important for you and your family.

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to reachyourviews@gmail.com)