Why did I choose 33 and not a nice round number like 30 for this post? Simple...it takes the mind 3 years to ACCEPT that you have turned 30....so 32-3!
You have done well academically, got a job, changed jobs, chased a girl, convinced her dad, and got married. At the back of your mind, you did not even realize where in all this fun you became a parent! Your father got a mild heart attack and you were upset about the way he was asked to pay in advance (you had no cashless medical insurance).
You know that you have to save some money, and invest, but you never got down to doing something seriously. Your friends, wife, parents, your wife’s parents, colleagues all have been talking about some insurance, provident fund, medical insurance… you have also done something.
However, you were (are) not sure about what you have done. You did not know whom to ask whether what you have done is enough. Even the financial adviser was a little scary — so you never went for that second meeting! So what do you do? Well, here is a check list…
What are the milestones you should have achieved by this age?
Financial Independence: You should have cut the financial umbilical cord from your parents. You are now living independently (or paying for your share of the expenses).
You have repaid a big portion of your educational loan (unless of course if you are a doctor, then you are still studying).
You have finished all your ‘must buy’ kinda toys - motorcycles, cars, etc.
You have started a few SIPs and AT LEAST one towards your retirement.
You have nominated for your provident fund, your savings account, your EPF, and other such investments.
You and your spouse now track your expenses.
You have made up your mind regarding marriage, if not already married.
You have made up your mind regarding having a kid.
You have established an emergency fund.
You are adequately insured, both life and medical.
Your retirement accumulation is about Rs 10 lakh and you cannot touch it till you are 55.
Your credit score is 790. Ok kidding, but ensure you have a good score if not a great score like 790.
Your health is in top shape and you are playing a killer sport: squash, sprinting, mountain climbing, etc.
Stop comparing friends and others’ successes by length of a car or the GB of their cell phones.
Developed a hang for the kind of lifestyle you can afford to live.
Zeroed in on the location and size of a house, either bought or know why you are not buying.
PV Subramanyam
writes at www.subramoney.com and has authored the best seller ‘Retire Rich - Invest Rs 40 a day’