Turning 30 sounds like a milestone. While I am almost 2 years away from turning 30, I feel like I need to prepare myself for 30.
Here are the 30 things that you should know about money before you turn 30
- Chasing money is a futile experience. Add value to people’s life and do what you want and money will flow.
- How much money you save and invest depends on how rich you ‘feel’ and not your bank balance.
- Save before you spend.
- Money does not buy happiness but it can’t help us to do things that make us happy.
- Having a lot of money does not change your personality. It amplifies who you already are.
- To gain wealth, give your money and time to people who don’t have it.
- Express gratefulness for the money in your bank account.
- Money is not the most expensive thing. Time is.
- If you don’t value your money, no one will.
- Understand what is an asset.
- You don’t have stop living to save money. After you have your investments in place, focus on things that you want and leave out the rest.
- Saving is important and you should save/invest at least 20% of your salary.
- Money makes more money. So you need to save first.
- Emergencies can happen anytime. Be prepared for it by parking at least 3 months of expenses in a separate savings account or liquid fund.
- There is no need to buy house if you are not planning to stay in the same city for more than seven years.
- Get a term insurance even if you don’t need it now.
- Your employer’s health insurance is not enough.
- Don’t mix insurance and investment.
- Know your short term and long term financial goals.
- Focus more on your financial goals than returns.
- Investing in yourself gives the best returns.
- Don’t invest in investment options just to save tax.
- Buying things on sale that you don’t need is a waste of money.
- Always try to understand the reason behind the financial advice.
- Stay away from people that does not support your money saving goals.
- The earlier you start investing for your retirement, the easier it will be to retire early.
- Seek financial advice that goes against what you already believe.
- Mutual funds and fixed deposits can’t make you rich. Its main objective is to manage your money.
- Automate your bill payments so that your never charged late fees.
- Get a credit card only if you are 100% sure that know that you use it sparingly and pay the bills on time.