A man's hand holds out a bundle of South African money, offering them to someone unseen. mage: Getty Images
Weren’t our 20’s great? Life lay ahead of us as this big, sexy gamble where anything could change at any time.
We were all making peanuts, working hard, partying harder, and–for a lot of us–still not fully living off our own salaries.
Things on the other side of the decade line are different though, and a lot more has changed than our metabolism.
Evenings out end earlier, many of us are at a place in our jobs where we have better balance; and more money is coming in than it was some years ago.
It is the decade of true independence for many of us in Indian homes–and with that independence comes responsibility. Emotional, mental–but especially financial.
The mistakes of our 20s aren’t quite as easy to breeze by anymore, and getting smarter is the only natural way to grow.
Here are the seven things you shouldn’t be doing anymore by the time you’re in your 30s–and, by the same measure, should be doing in their stead…
You should be saving. That’s it. Non-negotiable. If you’re spending everything you’re making, it's time for either a readjustment of your choices–or your attitude.
Saving is great–it's a big first step if your previous lifestyle involved frittering away everything you brought in without a care in the world for Future You.
But that money collecting in a bank account does far less for you in the long run than a couple of smart investments.
Depending on whether you consider yourself more of a risk-taker or a play-it-safe type of person, there’s a plethora to choose from (and consulting an advisor helps).
From the high pay-off risky ones like crypto and hedge funds to safer bets like fixed deposits, the world is your oyster. Just don’t put all your eggs in one (dicey) basket.
You might have your investments sorted (and hopefully you even have a PFF), but it's always a good idea to have a little fund set aside just for emergencies; one that you can crack open without hassle at any time you need to.
It can coast you through anything from damage to your home to unforeseen medical expenses, home-appliance repair or replacement, major car fixes, or biggies like unemployment.
Try to put about 5% of your paycheck towards it, and create it in a way that gives you easy access to it.
Used to dust off bruises with your hands and skip a tetanus shot after a light brush with a nail because ‘what’s the worst that could happen?
That laissez faire attitude is a twenty-something’s game, and as you cross over into the next decade, you can’t be quite as cavalier.
The earlier you invest in health coverage, the better it is. And the less the chances of your application getting rejected.
That way, if any heavy stuff comes along later, you’ll have your ducks in a row; and won’t go bankrupt trying to pay for healthcare.
A PPFAccount (or a Public Provident Fund account) is a government-backed long-term small saving scheme; and it's ideal if you’re not a big risk-taker.
Considered one of the safest investment avenues in India, it offers a fixed rate of interest (currently 7.1% p.a., compounded annually) and is eligible for a tax deduction.
If you’re not going to have multiple investments, this is one of the few that absolutely should make the cut.
If you’re in a relationship or a marriage, your finances are likely to be shared to a degree.
Which is why you can’t function in financial silos, spending and saving without the other partner being privy to the decisions.
While the final say in how you invest your money and how you prioritise it can, of course, be yours, your partner deserves to have a say as someone who shares in home-running and expenses.
This is especially true for large purchases and investments that could have a ripple effect on your home and family finances.
The only investments scarier and more unpredictable than hedge funds? Children. If you’re having kids as investment and only saving for their education and welfare, it's not a smart move.
Not only is it terrible pressure on your kids to perform and deliver quality life for you later, as payment for everything you’ve put in, but it also leaves you in bad shape if they can’t deliver, choose not to, or something happens.
Invest in your kids out of love. Invest in your retirement out of practicality.
[ Via GQ India]
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