Financial life begins at 30

No sooner you are in your thirties that you realise you have saved nothing much in your twenties. Academics, gadgets, vehicles, friends and partying would have already drained your cash reserves. You would have just enough to pay off your EMI’s.

By the age of 30 you may be married and a parent of a child too. Conversation with friends that once revolved around football, music and going out. Now it’s allabout  house prices and babies. Even if you don’t have either yourself. It is by this time that you feel as if you have been hit by a truck. You realise that there are mouths to feed and to take care of. At this juncture of your life making the first investment stroke is very important.  During the 20’s your financial responsibilities /goals are small and short term. However, at a later stage you would realise that it is not just essential to juggernaut your way towards financial goals but also to ensure your future is monetarily secured.

At 30 you realize that it’s not only the quantity that you have saved but also the quality of

investments that make a major difference. You might have saved for yourself to peddle through

crisis; however,you understand that the money that you had reserved for hay days such as in an ULIP plan does noteven return the capital employed, from a 3 to 5 years prospective, it was good money thrown at a bad product. You acknowledge the fact that“0% interest on EMI through credit card” is a misnomer and loan EMI’s hampers your savings. Soon you comprehend the “power of compounding” and “rupee cost averaging”.

Rupee cost averaging is the technique of buying a particular investment through a fixed amount on

a regular schedule, regardless of the price. More quantity is purchased when prices are low, and

fewer quantities are bought when prices are high. Eventually the average cost of purchasing a unit

becomes lesser and lesser. You should note that magical!

Systematic investment becomes important when an investor earns a regular income such as

salary for meeting his day to day needs. Starting a mutual fund SIP early in your working career

and staying invested with it is the best idea.Rs 15,000 per month would raise you a jaw dropping corpus of more than Rs 1 Crore after 15 years in top mutual fund schemes.

As a child chasing butterflies was what life was all about and now chasing money would be your primary objective. This is the stage you work for money just to ensure money works for you when you call it a day.