By Ankit Patel
There’s something about hitting your 30s that makes money feel very real. Maybe it’s the EMI reminders, or the wedding invites piling up, or just the growing sense that “I should probably be doing more with my income.” Whatever it is, this is the decade where your financial decisions start compounding, literally and metaphorically.
And no, it’s not too late. But it’s also not too early to start.
Be Clear Of What You Want
The first step? Get clear about what you actually want from your money. Vague ideas like “I want to save more” or “I should probably invest” don’t cut it anymore. Think about where you want to be in five, ten, or twenty years, whether that’s buying a house, taking a sabbatical, sending your kid to a good school, or retiring early.
Putting numbers and timelines to those goals gives you something real to aim at. It’s not about being rigid, it’s about being intentional.
Know Where Your Money Is Going
Next, look at where your money is actually going. Most of us earn decently by our 30s, but without a plan, that income tends to disappear somewhere between Swiggy, EMI payments, weekend getaways, and the ever-expanding list of subscriptions.
A simple budget, say, 50% on needs, 30% on wants, and 20% on savings and investments, can go a long way in bringing order. It’s not about being frugal; it’s about being aware.
Have Backup
Now let’s talk about your financial cushion. Life has a funny way of surprising us, layoffs, medical bills, or family emergencies rarely announce themselves in advance. That’s why an emergency fund is non-negotiable.
Aim for at least 3–6 months of basic living expenses in a separate, easy-to-access account. It’s peace of mind in the bank.
Your 30s are also when big life events start showing up, marriage, kids, home loans. These aren’t just emotional decisions; they’re financial ones too. Planning for them in advance can save you from scrambling later. For example, if you’re hoping to buy a house in a few years, start setting aside for the down payment now. Want to have a child soon? You’ll thank yourself later for starting an education fund early, even Rs 2,000 a month in a long-term mutual fund SIP can snowball beautifully over 15–20 years.
Don’t Forget To Compound
Speaking of snowballing, let’s talk about the magic word: compounding. You’ve probably heard it before, but here’s the truth, your 30s are the perfect time to make compounding your best friend. If you invest Rs 5,000 a month now, you’ll likely end up with more by 60 than someone who starts ten years later with twice the monthly amount. The key isn’t how much you invest, it’s how early and how consistently you do it.
On the flip side, if you’re carrying debt, especially high-interest stuff like credit card balances, it’s time to get serious about paying it down. Not all debt is bad, but if you find yourself juggling EMIs and barely saving, that’s your signal to pause and reset. Try to keep your total EMI outgo under 30–40% of your monthly income.
Most Importantly, Protect Yourself
And while you’re protecting your finances, don’t forget to protect yourself. If you have dependents, term life insurance is a must, think 10–15 times your annual income. Health insurance, too, even if your company provides some coverage.
Hospital bills can be brutal, and you don’t want one medical emergency to wipe out years of savings.
What About Retirement?
Now, a quick word on retirement. It may feel decades away, but guess what? You’re already halfway there if you plan to retire at 60. The good news is that the Indian system offers plenty of tools to help: EPF (if you’re salaried), PPF for long-term safe growth, and NPS for a balanced, tax-efficient retirement portfolio.
Don’t just rely on one. Diversify. Include some equity exposure, some fixed income, maybe even real estate over time.
Invest In Yourself
Last but not least, this is a great time to invest in yourself. Whether that’s learning a new skill, doing a professional course, or starting a side hustle, every rupee you earn outside your 9-to-5 can be fuel for faster wealth creation. And in today’s gig-friendly world, there’s no shortage of opportunities to turn your skills or hobbies into income.
Bottom line? Your 30s aren’t about having it all figured out; they’re about building momentum. Make small, smart choices now. You don’t have to be perfect, but you do have to be consistent. Future you will be incredibly grateful.
(The author is the Co-Founder and Partner at Arunasset Investment Services)
Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP Network Pvt. Ltd.
