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If you haven’t been able to invest and save enough money in your 20s, you still have ample time to make amends. Your 30s are a golden time in your life. You are pretty settled in your career and you are also more responsible now. As a result, it becomes easier for you to be disciplined with your money and subsequently, invest and save more. So if you are 30 or 30+ and you have finally decided to invest for your future, we have some handy tips for the existing and new investors.

Step up the SIP investments 

If you already have started investing in SIP mutual funds, your 30s are the decade when you really need to step up on this and work towards the accumulation of wealth.

Stepping up on your SIPs means increasing your SIPs on an annual basis, in accordance with your income growth, so as to fulfil your financial goals. You can choose to start another SIP, in a different fund for a completely different goal as well, or increase further investment in the same scheme.

For example, if you invest about INR 5000 every month in SIPs, you will have close to INR 1.5 crores in 30 years’ time at a 12% CAGR, which will also coincide with your retirement time.
You can increase the SIP investment with time and have an even greater fund when you are 60 years old. Amp up the SIP investments and create a big and healthy corpus for your future. you can use the Step-up SIP calculator.

Goal-based investments

By the time you reach your 30s, you are quite settled in your life and you clearly know what your financial milestones are. Whether you wish to buy a house of your own, or you want to send your kids to study abroad, it is important to start identifying your financial goals. Then, invest accordingly to ensure you have enough savings to fulfil your financial dreams.

So you need to mentally and financially account for each investment for a specific financial goal. For example, a SIP in a mutual fund for buying a new car in 5 years. Thus, you would most likely not break/redeem that investment for any other purpose.

Maximise tax saving investment limit

At this phase of your professional life, you must be drawing a handsome salary. Hence, the need to make the most of your income tax deductions to the limit. As we all know, saving money is crucial to investments and so you should try to save your tax money too. Apart from utilising the common tax deductions available under Sections 80 C and 80 D, also look at other investments that offer tax savings under other sections such as Section 80EE (home loan interest rate) and Section 80G (donations made for relief purposes). 

To know more about taxes, click here to read this article.

Plan for your retirement 

When you invest for your future, remember to keep a specific fund for your retirement years. As a youngster today, your retirement may seem like a lifetime away, but you will be 60 before you know it. This is why you should start saving in small amounts so that you have enough money to be financially stable and independent till the last day of your life. There are many retirement schemes to consider. From the retirement life insurance plans to the NPS, you have several options to rely on.

Thus, you need to first decide on the actual age of retirement and then understand how much money would be needed as your retirement corpus based on your lifestyle. Then you need to plan your asset allocation based on your risk appetite and then choose your desired investment product. You can use the retirement calculator.

Get a high health cover before hitting your 40s

Getting a health insurance policy with a high coverage amount is a crucial thing to do in your 30s. The earlier you opt for your health insurance, the easier it is for you to get higher and all-inclusive coverage.  Therefore, invest heavily in a good health insurance policy, along with a critical illness cover. Your health is your wealth and you need to protect it at all costs. Additionally, a health plan also covers your money and protects your savings and so you definitely need to get one at the earliest.

To wrap it up
You are all set to grow in life so don't put a brake on your investments either. Diversify your investments but keep investing based on your asset allocation to see the best results. Invest in your 30s and enjoy the benefit of time. Multiply your wealth with the help of compounded interest that you can get by investing wisely.  

Disclaimer: Investment in securities and other investment products is subject to market risks; read all the related terms and documents carefully before investing.