How to Choose the Right Savings Plan in Your 30s?

Financial planning is an essential aspect of life to secure your future. So, you should start saving from a young age, especially after you reach thirty. Saving when you have dreams to fulfil may seem difficult, but it must be your top priority to be in a good position when you retire. Find out how you can choose the best savings plan when you are in your 30s.

Main Factors to Consider When Choosing a Savings Plan

There are multiple savings options available in India, and it may confuse you about which type of savings is best. So, below is the list of factors that may help you choose suitable saving investment plans.

• Cost Of Savings Plan

The first thing to consider while investing in savings plans is its cost. Before picking the right plan for yourself, evaluate the price of the plan in terms of premiums and policy charges. Also, look for the rate of interest the plan will offer at the time of maturity.

• Financial Goals And Dreams

Before choosing a savings policy in your 30s, you must set your investment goals clear. The goals may include building a wealth corpus, retirement planning, your child’s educational or wedding expenses, buying a home, etc. Analysis of goals will help you choose a suitable savings instrument with adequate corpus and tax benefits.

• Duration Of The Investment

Another essential factor to consider before buying a savings plan is plan tenure. Keeping in mind your investment goals, you can choose between long-term or medium-term saving instruments. the duration of the plan also allows you to earn interest on savings that may help to enhance your savings corpus.

• Risk Profile

Before investing in a savings plan, you must evaluate your risk-taking ability. The risk appetite may depend on your age and income. In your 30s, you can choose high-risk investment options that offer high returns.

If you aren’t risk averse, market-linked investment can be a good option that gives high returns.  But if you don’t wish to take risks, you can invest in conventional savings plans that involve low risks and give moderate returns.

• Tax Benefits

Different plans offer you different tax-saving benefits. So, before you plan to invest, compare multiple savings plans in terms of taxation. Then, you can pick the plan with the highest tax-saving opportunity.

• Flexibility

Investment in savings should come in handy in financial emergencies. So, before picking a suitable savings plan for yourself, ensure it offers a certain degree of liquidity to meet unforeseen finances.

How Much Should a 30-Year-Old Have Saved?

The rule of thumb is to save according to your age. So, if you are in your 20s, you should save 20% of your income and 30% in your 30s and so on.

Tips You Can Follow to Invest in a Savings Plan In Your 30s

• Calculate your monthly expenses and set aside a fixed amount for savings.
• Diversify your investment portfolio if you wish to invest in the financial market.
• Save for the future using a disciplinary approach.
• Increase your savings when you have surplus funds in hand.
• Factor in the inflation rates.

Conclusion

Smart savings at the right age gives you long-term financial security. For example, with Tata AIA Life Insurance, you can choose from multiple savings plans to plan for a financially secure future at every step of life. With a few clicks, you can buy a suitable savings plan online. So, hurry and start saving today and live your life to the fullest.