We all know about the benefits of investing, but the getting started part seems extremely complicated and challenging. If you are struggling to get started in your 30s, here is a breakdown for you courtesy of Geeta Goswami, co-founder and director of Usha Financial. “Women in their 30s should concentrate on stable and continuous investment. Today’s women take on multiple roles. From homemakers to entrepreneurs, they play a huge role in the country’s economy. As they have multiple hats to wear, they should invest in stable and consistent returns, which should complement their well-being and future planning,” shares Geeta.
From the must-haves in your investment portfolio to the amount you need to invest in, scroll down for a thorough list.
Things To Consider While Investing In Your 30s
“For starters, plan the finances you may need around major live events like your marriage, having children, any medical requirements, etc.,” shares Geeta. “Some investments might seem very lucrative; however, you need to invest in things that provide you with consistent returns. Another thing to take care of is liquidity. Make sure your investment can easily be converted into cash within a short time. This will ensure that you have access to emergency funds when necessary.”
“Ensure that you invest continuously. Make a budget where you keep aside around 40 per cent of your total income for your investment. The last thing to remember is to focus on becoming debt-free as soon as possible so that you can focus entirely on your investments,” she adds.
Three Must-Haves For Your Investment Portfolio In Your 30s
“If you didn’t invest when you were in your ’20s or didn’t save as much as you could have, don’t worry, there is still time,” explains Geeta. She lists three must-haves for your investment portfolio for maximum returns.
Mutual Funds
These are one of the best investment options out there. Having mutual funds ensures growth in your wealth over a longer period.
Equity Funds
Equity funds have high potential. There are tax-saving and also provide good returns of up to 14-18 per cent, which sounds great for someone who is just starting out.
Systematic Investment Plans (SIPs)
One of the safest investments is SIPs, as they have a high potential to grow and are also flexible in nature.
Financial Risk Factors To Consider While Investing In Your 30s
According to Geeta, your ’30s are an excellent time to take some risks as you still have enough working years left to recover the losses. “Investing is important at any age, but the same strategy should not be used for every stage of your life. Young investors have more risk-taking capacity, and those near retirement may have more money to invest but will have less time to recover losses. At 30, you can reap the benefits of compound interest as there are still 30-40 working years left before you retire. At this age, you can still recover the losses if you incur them.”
“It is important to determine the amount of money you can invest at this age. “Do a proper trend analysis before you start investing. Women are known to have a lesser appetite for risk than men, which is why you need to invest in a mixed portfolio instead of just investing in one or two instruments,” shares Geeta.
Investment Mistakes To Avoid While Investing In Your 30s
“Your ’30s are a significant decade in your life for financial planning. Most of us have established careers by this point, have a steady salary, are married, and some of us may even be proud parents,” explains Geeta. “Compared to when you were in your ’20s, you now have more obligations. This is why you need to consider the following pointers:
●Ensure that you don’t put off your retirement plans. Make sure you start investing in your retirement funds at this age.
●Secondly, don’t forget to put tougher an emergency fund.
●List down specific financial objectives and spend this decade fulfilling them.
●Avoid investments that require long-term liquidity. This is important to remember, especially when making long-term investments; the money can come in handy in times of emergency.
●While saving money for the future is a good idea, make sure you are also doing so for current everyday expenses. A retirement fund is excellent, but so is a car or a first house fund.
How Much Money Should You Invest In Your 30s
“Saving for the future and planning for retirement is important, but ensuring that you are your family is protected at all times is one the most important things. A 60-40 should be the ideal investment ratio at this age. Forty per cent of your earnings should be invested into the market,” shares Geeta.
How To Keep Track Of Your Investment
“I believe an effective money management tactic to sustain a decent balance between your incomes and spending is to keep track of your costs and create weekly or monthly budgets. Maintaining a sound financial situation and avoiding unnecessary expenses benefit from keeping track of your money,” shares Geeta. “However, it takes time and effort to track every single penny manually.
Start by keeping aside a small amount and then increase the amount as you get comfortable with the investment process. Your ’30s are as good a time as any to get started.