If you are in your 30s and your New Year resolution is to save more and be financially prudent in 2023, follow Money Today’s quick tips to achieve your budget goals!
- 50% of income should be spent on needs
- 30% on wants
- 20% should be saved
- At least six months of your monthly expenses should be in short-term funds
- Your long-term investments are not to meet contingency expenses
- Income plus withdrawals are tax-free (unless exceeding Rs 2.5 lakh) in EPFO
- Compounding benefit helps you in accumulating retirement fund fast
- You should certainly open PPF because of its tax-free status.
- It helps you to save solely for retirement. It has a lock-in period of 15 years
A single hospitalisation can wipe out your entire retirement savings. The more you delay in getting a good health insurance, the more difficult it gets to buy a cover at a later stage
- Calculate your liabilities and go for a simple term insurance policy
- Increase or decrease your life cover as your liabilities change
- A good credit score helps in getting cheaper loans
- Keeping track of your credit score alerts you in case of any identity theft
Inflation reduces purchasing power substantially over long-term. Invest in assets that offer inflation-beating returns
Decide on the right asset allocation. The Thumb rule is “100 – Your age” to decide the equity exposure that one should have
Start saving as early as possible. Early investing helps you to reap the benefits of compounding
- Get rid of high-interest loans
- Consolidate your loans
Start SIP for child’s higher education. Equities tend to give higher returns over the long term
- Have succession planning in place
- Keep all important documents in one place
Story by: Teena Jain Kaushal
Designed by: Pragati