How 30-Somethings Can Restructure Their Finances
The 20s are the best decade of most people’s lives, but it’s the 30s that make things more serious. By the time you hit your 30s, you have a young family, a slightly higher income, more expenses and bigger dreams. But you find that your salary is drained rapidly, sometimes even before the end of the month .
An urgent restructuring of your finances helps. This is how you can do it:
Start multiple savings funds
Saving money regularly creates a nest egg for the future. But in your 30s, you have multiple responsibilities and you might be tempted to use your savings when you need to buy something expensive, or for home remodelling , or even take a holiday with your family. Instead of maintaining one savings fund, have two or three of them. One can be set aside for emergencies, another for travel, and a third for children’s needs. Please rephrase to withdraw from any of them, and to add small sums to each every month from your salary. Doing this ensures that you have the requisite funds for their intended purpose when you need them, without disturbing your income.
Take personal loans for short term needs
A lot of people dip into their savings for short term needs like buying an expensive phone, or to buy a holiday. We’ve already covered the need to have separate savings funds for these needs in the point above. However, if you don’t have the resources at hand to make these purchases and don’t wish to withdraw from your savings account, there is a better avenue to explore: an instant personal loan. Leading fast loan apps in India offer instant personal loans that are disbursed in just a few hours from application, and these loans can be used for a variety of purposes, both urgent and non-urgent. Once taken, you can repay the personal loan on the fast loan app in a series of monthly instalments.
Eliminate debt before you hit your 40s
Unpaid debt cuts into your monthly income till it is fully settled. You might have multiple loans to your name: home loan, car/two wheeler loan, personal loan, etc. Each loan is repaid via EMIs. With each successive EMI, you are left with lesser disposable money from your monthly salary. Do note that there are several responsibilities in your 30s, which will further increase in your 40s. hence Eliminating debt entirely by the end of your 30s frees up your income for other expenses, making investments, etc.
Start investing your money
The only way to grow your money exponentially is to invest it in the right instruments. Try options like PPF, SIPs, equity funds, mutual funds and debt funds.
Monetise an asset
There are some assets that you either don’t need, or which you can put to work to earn a regular income. For instance, there may be an extra room in your house that you can rent out to a tenant for a fixed sum, or rent out to holidayers or tourists. Or you could have a car that you don’t drive regularly, but which you can rent out to local tour operators for a weekly sum. Monetising your owned assets sets up a steady income stream that can pay for household maintenance, or add to savings, etc.
Conclusion
The points mentioned above can help you restructure your personal finances to create future wealth.
