Start planning your finances in your 30s – Hoard enough cash for a stress-free life

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Gone are those good old days when you thought that the best way out is to hoard cash in your bank account. This is mainly because the returns that you get from saving money in your bank account will always be less than what you can earn from investing money in FDs, bonds, SIPs, stock market and mutual funds. For all those who wish to remain financially independent, the key is to invest your dollars at the right place.

However only investing your money won’t be enough as you also need to be track your progress so that you can remain invested even in the long term. Financial advisors always recommend people to start investing early during their 30s so that they have enough time to measure their success and learn worthy financial lessons. Here are few tips which can let you invest more, spend less and save more.

  • Don’t fall into the trap of collecting quick profits

As per what Warren Buffet has to say, one should invest only in those assets which he knows best. He even added that if someone invests in things which he doesn’t know, he is actually gambling. It is not that you will always require being an expert to accomplish investment returns which are satisfactory. But in case you want to become an expert, you can seek help of an investment advisor or follow a course to which you can gradually respond.

  • Bear in mind the philosophy of the rich and the poor

There is a famous perception that financial planning entails saving a little but after spending and then investing that little savings. If you have to understand the philosophy of the rich and poor, you’ll have to know that the rich usually invest their dollars and then spend the little amount that is left and this habit makes them even richer. On the other hand, the poor people spend their money and then invest the amount which is left over.

  • Understand the frugality approach

Are you often overcome with guilt and shame during the end of the month because of the fact that you think you’ve spent too much on something that you could do without? Do you think this is the right approach that you should have towards your expenses? Adopt frugality. Frugality is not just cutting down on your expenses but it is about selecting the things you love and spending on them and cutting down on those which you don’t love.



  • Cut down on borrowing money from people and lenders

Credit cards are certainly attractive options. When you borrow money which isn’t affordable now, it becomes affordable within a few months time. Warren Buffet says that he has seen most people fail on leverage – which is borrowed money. He thinks that the world could run in the same way even when so much leverage is not taken. In fact, you can make lot of money if you don’t borrow money so much.

Hence, if you’re wondering about the reasons behind saving and investing money, take into account the tips and advices shared in this post. Start off early so that you can get enough time to take care of your finances.