Turning 30? Here are 10 Financial Mantras to keep in Mind

We often see people making lists of things to do by the time they are 30 or before they reach 40. These lists usually have items like traveling to exotic destinations; having a child; learning a new language etc. These are good goals to have of course, but what I see missing in these lists are goals related to financial security. So we made a list of financial goals to make when you are in your 30s.


Read – 10 Financial Planning Thumb Rules

10 Financial Mantras for Your 30s

1. Take Adequate Insurance 

Are you insured properly? You must take a term policy so that your near and dear ones are financially secure and comfortable in case of any unexpected events. If you have a housing loan, do ensure that it is covered by home insurance so that in case of default, there is some backup.

2. Take steps to ensure dependents are taken care of 

Are family members dependent on you? If you have aged parents, you should take a medical cover for them. If you have children, you should take into account the expenses that would be incurred on them like their education. You should invest in various options like PPF, FDs/RDs and mutual funds and keep this amount separately.

3. Asset allocation 

Are your savings lying only in bank accounts and bonds. You should invest in a variety of assets so as to get better returns and diversify risk.You should invest in equity as well. Typically allocation in equity should be 100-(your age) in percentage terms. So if you are 30 years old, 70% (100-30) of your investment should be in equity and equity based assets. As you grow older, reduce equity investments, as they are considered more risky/volatile compared to other assets.

4. Invest in yourself

If you are in a job, take courses to upgrade your skills to enhance your career. Learn new things related to your industry and job so that you don’t find yourself obsolete in the job market. If you are a professional or have a business, attend conferences and seminars for networking and latest news in your subject matter. Invest capital to expand your business. You should also learn new things so that you have a well-rounded personality.

5. Tax Planning 

When you started off your career or business, you may have just invested in tax saving instruments so as to avoid paying tax. Change that. Invest in proper tax planning instruments so that it helps you in reaching your financial goals and provides financial security. Plan your income and taxes from the beginning of the financial year rather than putting money in some ‘tax saving’ instruments advertised heavily in February and March or because your friendly neighbor, the finance advisor has to reach his sales target.

6. Buy a house

Investing in real estate is not easy. You need to consider various things like price, location, the reputation of the builder, appreciation value, etc. But if your job is such that you will not be in a new city or country every year and you have a family or plan to have a family, you can think of buying a house. It will help in tax saving. Post-retirement, you will have a place to stay and rents increase with inflation, and renting out, in the long run, will be expensive. But read this… Buying Vs Renting

7. Estate Planning

Estate is the total net worth of a person. You have to plan your estate be it big or small. It means taking steps such that your wealth is taken care of and distributed to recipients, as you want after your death without legal problems. Some steps here are creating a will, nominating guardians for dependents, and monitoring the estate plan regularly. 

8. Retirement Planning

You should have started planning your retirement in your 20s. If you have not done it, follow the adage – ‘Better late than never’. You have to check how much you need after you retire. It should be equal to an amount that can maintain your lifestyle factoring inflation and take care of medical expenses. 

9. Bring in self-discipline

You might have splurged on a lot of things and experiences in your 20s as you were young and having cash in your hand was a newfound freedom for you. But now you need to discipline yourself. People around you might be buying fancy gadgets, latest fashion gear and holidaying abroad every year. Do not get distracted by this. You have to plan for your and your family’s future and your retirement. You have save regularly and ensure you are on track to reach your financial goals.

10. Budget 

This has to be done from when you were much younger. But it is never too late to start a good habit. Draw up a budget, categorize your expenses and set targets for each category. Make sure that you don’t exceed the targets. If one expense goes above the limit, take steps in other areas to curtail overall expenses. There are many software applications like Perfios & Android/Apple Apps that will help you manage your budget.

Have you made financial goals? Do let us know what are your goals to ensure financial stability and your experience on trying to achieve them. 


  1. Hi Hemant,

    I have read many of your articles about financial planning and goals which are helpful for our present and future. But my question is don’t you think our financial planning should also include something for the poor people as well? I believe that every person in India who is above poverty line must help a person who is below poverty line. If we do that then we are setting such a good example for the country as well as for humanity. Even a small help from our savings will benefit a poor child, or disabled or underprivileged person. It will be great if you can write an article on this. Thank you.

    • Manoj,

      Yes you are right. We should always aim for helping others within our means. Your point is well taken and we will look into writing on this in the future.

  2. Hi Hemant,

    Thanks for the post.. by the way except for the points 4 & 9 i am almost done. Of course all other points i am doing with the help of your articles. thank you.

  3. Hi Hemant,

    I have been following your articles for more than 1 year now and I have learnt a lot from them. This current article is very good and thanks for the same.
    Some day I plan to have you as my Financial Adviser 🙂

  4. good points. i think invest in yourself should be no 1 and budget should be no2.
    if these 2 are there everything will follow

    also what worries most is education cost and medical cost. for lkg itself they are asking 1 lakh fees and i have to sell my kidney to get a fracture treated

    • Ajay,

      Its sad to hear what you have gone through. The high cost of education and health care do sometime go beyond our means. But i think we can make some provisions, if not all, for all such expenses.

  5. hi hemanth sir,

    nice article for 30’s.

    i already taken Term insurance (50L),Accidental insurance (bajaj 25L) for me. and Medical insurance (5L)for My whole family. started PPF (3000pm) also. PF also there.

    and 1000rs pm in ICICI focussed bluechip , 2000Rs Pm in IDFC premier equity-G and 2000Rs pm in HDFC top200 funds.

    i already have Home loan since 4 years.
    any improvements required???

    thank you sir

    • Hi Raj,

      You are doing good wrt your finances. You need to just do periodic reviews to ensure you stay on course.

  6. Point 6.
    If you buy a house in your 30’s… believe me…it will not be livable when u retire…
    pls remember u also have to live for may be other 20yrs after retirement…
    whats the point in saving 45000 and paying 200000 interest !!!!

    • B

      The decision rest on your financial situation.

      Buying a house at a higher age at times becomes difficult when you have so many commitments to make. When you are buying on loan, the benefit of buying early is that you do not have to stretch your liabilities till your retirement.

  7. Hi B

    S i agree with u.
    i am planning to close My Home loan in next 5 yrs.
    so may ot covers somethinggg

  8. Good list Hemant. Are they in some order?
    By 30s most of Indians are married so any financial goal should not be done in isolation. It’s better to involve your other half !

    • Kirti,

      In any financial decision its wiser to involve your other half. It can ensure a more efficient money management.

  9. Dear Hemant,

    I would suggest the 11th one! Buying a health insurance policy (for the ones who have not purchased in their 20’s) is a MUST in 30’s. As many are dependent on the employer provided health cover.

    Best regards,
    Binson Mathew

  10. Hi Hemant

    Nice Article. Too difficult to follow all 10 rules. You need patience and desire to follow all these rules.

    When is your next article on Bonus is coming????

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