Things to Achieve with Your Money Before Turning 30

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08 min read

Turning 30 years old is a major event in everyone’s life. They say you lose your youth once you are 30 years old. Therefore, it is essential to ensure that the following points are taken care of by the time you turn 30 years old:

Have the right term life insurance

The modern world is uncertain. You are not sure as to what’s in store for you in the next moment. Given this uncertainty, you must cover yourself with the right term life insurance. A term insurance policy covers your life against the possible contingencies that may take your life. In case an untoward incident takes your life, the nominee of your term life will be paid out with the sum assured of the policy. 

A term life insurance is particularly recommended for the breadwinners of each family. The sum assured of these policies would be sufficient for your dependents to live the same standard of lifestyle that you are providing. Also, the premium of a term life insurance policy is nominal, and in exchange, you get a large life cover. The premiums payable will be on the lower side if you avail of the policy before turning 30 years old. 

Avail a health insurance policy offering good coverage

As mentioned earlier, the modern world is uncertain. Nobody ever saw the COVID-19 pandemic would take over the world, and that’s when most of us realised how important it is to have a good health insurance policy. If you or your dependents require emergency medical care and hospitalisation, you will likely spend a fortune at a good hospital. This could be avoided by availing of a health insurance policy. 

Most health insurance policies provide cashless hospitalisation facilities. Therefore, you can protect your savings and investments even at times of ill-health. Most employers offer health insurance. In case you feel the sum assured is insufficient, you may consider topping it up or even purchase a private health insurance policy and cover all your dependents under the same. 

Have a sufficient emergency fund

An emergency fund is a corpus accumulated to cover unexpected expenses due to various unprecedented events. They could be a medical emergency or job loss. Having an emergency fund by your side helps you overcome the challenge without having to readjust your lifestyle. 

Ideally, your emergency fund should be at least six times your monthly income. You may consider accumulating an emergency fund in a liquid fund. These funds facilitate redemption in just one to two business days and provide higher returns than a regular savings account. You may also consider saving a sum in your bank account every month to build an emergency fund. 

Start working towards your long-term goals

It is crucial to start your journey early towards achieving your goals. You have to identify what your long-term goals are and should have started the work towards achieving them. These goals could be early retirement, financial freedom or building your dream house. Remember, the sooner you start investing in achieving your long-term goals, the faster you can reach them. 

Conclusion

It is critical to ensure that you have taken care of the above four things before you have turned 30 years old. In addition to this, it would be best to get debt-free.