30 Under 30 - Tips To Realise Your Financial Goals Early
Updated: Sep 10, 2022
Are you planning to retire early and spend your time the way you want to? But you have no clue how to get there. Don’t worry. We have your back. Here are 30 tips to help you reach your financial goals early and live your dream life.
1. Set smart goals
Without setting clear goals, you will shoot in the dark. So be precise about when you want to retire.
For instance, you want to buy a new house at 35 or travel the world at 40. Also, be clear about how much money you need to achieve each of these goals.
2. Budget! Budget! Budget!
Planning is the key to success. Making a monthly budget will help you streamline your spending.
You can cut down on unnecessary items and focus on your primary needs. Check out our blog to know the budgeting basics.
3. Follow it strictly
What’s the use of making a budget if you don’t follow it? Make sure to stick to your budget and not give into impulse buying.
4. Automate your savings
Opt for auto debit of your Recurring Deposits (RDs) and SIPs. If you have surplus cash lying in your savings account, you’ll always find the reason to spend that money.
5. Pay your debt early
Whether it’s your credit card bill or the installment of that personal loan, never skip your repayments. You can even try to repay your loans earlier to save on the interest.
6. Keep an emergency fund
What if you lose your job? You should have enough money as your emergency fund to sustain yourself if any uncalled situation knocks at your door. It is recommended that one saves 6 months of expenses towards their emergency fund.
7. Start investing
Saving without investing depreciates the value of your money because of inflation. Investing it rightly makes it grow. You can invest in low-risk assets like SIPs and Mutual funds or high-risk assets like stocks and cryptocurrencies. The choice is yours.
Mutual funds are an excellent way to start your investment journey. They provide much higher returns than your fixed deposits in the long run. A diverse portfolio lowers the risk of losing your money.
8. Learn to negotiate
Learn to negotiate whether it’s the salary you think you deserve or the rent you think you can pay. Negotiations are an excellent way to understand the market value of goods and services.
9. Multiply your income
You need to ensure that your income doesn’t stagnate and is able to beat inflation.
You can diversify your sources of income by getting a part-time job, start freelancing or even starting a small business. There are numerous ways to earn some extra bucks. So, go and make use of the opportunities.
10. Increase your savings with your income
If your income increases over a period of time, it gives you more room to increase your savings. More savings is equal to more returns, so why not?
11. Maintain a good credit score
Your credit score is a number that determines your creditworthiness. For instance, your credit score will impact the rate of interest the bank will charge when you take a loan.
Pro tip – Paying off all your dues on time helps you maintain a healthy credit score.
12. Be financially literate
Your school didn’t educate you on personal finance, taxes, etc. But you need to do it yourself if you want to achieve your goals. There are numerous online resources to help you. Check out these 5 important personal finance terms you must know.
13. Assets over liabilities
Assets can help you earn money since their value appreciates with time. However, liabilities can burn a hole in your pockets since their value depreciates with time. For instance, your house or a piece of land is an asset. But an expensive car is a liability. Now, you know where to invest.
14. Maintain your assets
If you take good care of your house and car, they will last longer. Remember that the cost of maintenance is always less than the cost of replacement or repair.
15. Manage your lifestyle
Don’t buy that luxury bag because you need to show off at a party. You’ve got bills to pay. So manage your lifestyle accordingly.
16. Wants vs needs
Half of your problems will get solved when you know the difference between what you need and your desires.
17. Where is my discount?
Brands keep raining offers and discounts. You just need to keep your eyes open. Look for festive sale or do your research on when the price of a product hits an all time low.
18. Save taxes
The government gives you provisions to save on your taxes if you invest your money wisely. P.S. don’t skip on paying your taxes; it may come back to bite you later.
19. Be accountable
You can use apps to get organized and better at saving and investing.
20. Get a financial advisor
If you feel stuck or are unable to realize your goals, always remember that there is help available. Read resources online, discuss personal finance with your friends, or someone you trust or seek a financial advisor.
21. Buy term insurance
Life is uncertain. So, it’s better to protect the future of your family and loved ones. A thumb rule - Get a cover that is 7 to 10 times your current annual income.
22. Track your progress
Keep a track of how far you have come. This will tell you whether you are moving in the right direction.
23. Keep an eye on the market
Is your plan working? Do you need to make some changes to adjust to the circumstances? Be ready to act. A lot of people lose money because they don’t adapt to the changes.
24. Focus on what you can control
Not everything is under your control. So, stop worrying about such events and focus on what you can do.
25. Think long-term
Don't fret when your investments fail to yield returns in the short run. You'll surely get excellent returns in the long run.
Focus on your long-term goals and not on short-term pleasures.
26. Stay healthy
Take care of your health. Otherwise, the doctor will take all your money.
27. Walk more
Walking is an excellent exercise for your physical and mental health. Moreover, it will save a lot of fuel costs.
28. Avoid junk food
Stop ordering food every day. It will save money and keep you healthy too.
29. Get a health plan
Health emergencies are not scheduled on your calendar. A health plan secures your future by covering emergency medical expenses. But what about your medicines, lab tests, and doctor visits? Don’t worry. Kenko covers all your OPD expenses too.
30. Start acting now
Planning is useless if you don’t implement it. Don’t listen to that procrastinator in you. Start acting now to realize your financial goals in time.
Don't forget to check out our health plans that can save you from financial burden of medical from medical expenses.