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Start young, they say. Be it training a dog or cultivating good habits, the sooner you start, the easier it is. We start working from the early twenties. But what people entirely neglect at that age, is what they could do with all the money earned. The general spending pattern varies with each age group. Teenagers mostly spend their money as soon as they receive it. At parties, on trips with friends, on clothing, on gadgets; they will find a new vent every month to blow up cash on.Youngsters between the age of 20-30 years, mostly interested in buying their firsts.

Carefree minds go with the saying;

“Do not dwell in the past; do not dream of the future, concentrate on the present moment”.

Reality spares no one. No matter where we are in our lives, we always end up thinking about the unfathomable “tomorrows” sooner or later. Responsibility and future financial needs will make you think aloud. You start dreaming about your kids financial future and worrying about your retirement.

When the consequences of our present action have a definite effect on our future, shouldn’t we plan better?. Especially when we know that the price we pay to make it better is meagre?

Let me tell you how to secure your future when you are under 30 years old so that life is much easier when you grow old.

Make an Attainable Plan:

First and foremost, identify and mark all your debts and their sources – keeping in mind their interest rates, tenure, etc. Following that, make a plan to chip away all the pieces of your debt. You need to do a complete analysis of your finances and think of how you can generate excess cash flow by increasing income and reducing unnecessary expenses. Then, after keeping aside money for daily expenditure, emergencies and if possible, savings, devote the rest of your finances to repaying your debt.

This debt repayment should be made in a planned and structured way – having long and short-term goals. Make sure all your plans are realistic and achievable. You can take help of our certified investment advisors.

1. Have fun:

The most important part is having fun. Having fun when you are young is highly essential because as you turn old, you will neither have the time, nor the energy to have fun. However, it is necessary to strike the right balance between your life today and your future. We can’t spend money lavishly as if it were our last day on earth. Being able to differentiate between the things that are essential and the things we buy to lead a luxurious life is the first and the most important step towards financial security.

2. Invest in Yourself:

Your most significant financial asset is yourself. Always remember, whatever the future may hold, you have the power to control it by your actions today. Investing in yourself will be your best shot at attaining complete financial security. The world is growing every day, and its needs and requirements also keep changing. Learning new skills will always be very useful in the future. If you stop learning new skills, your competitiveness and value also decrease which may throw you out of employment/business. By continually learning new skills and gaining knowledge, not only will you offer more value for the company but also open a range of opportunities for yourself as well. Learn personal finance basics which will help you to take informed and wiser decisions. Managing Personal finance is a life skill, mastering it will pay hefty dividends throughout your life.

3. Seize every opportunity:

Opportunities don't always come knocking at your door. So, when it does, your best option would be to grab on to it with both hands. Sometimes, you might have to take some risks as well. However, since you are very young, are bound to make a couple of mistakes along the way. Think of it as a learning experience for any of your future ventures. However, even while taking risks, it is imperative to take calculated risks only. You shouldn’t have to jeopardise your future with one very wrong decision.

Taking little extra risk than your risk profile Moving to a new city /country for better carrier opportunities.

Taking up a new job where the knowledge you gain might be beneficial in the future.

As you grow older, the pressure of taking care of your family and your child’s education might force you not to undertake these risks. Hence, it is better if you tried these when you are younger.

4. Never borrow money to finance your lifestyle:

Spending the money you already have to live a luxurious life is not a very good idea when you are yet to achieve financial freedom. However, borrowing money to lead this life is even worse.

The credit card schemes which offer 0% interest are in most cases only illusion set by the banks. These services attract processing fees for the money you borrowed. Another lucrative offer is the 0% interest on EMI. While this would help most of us buy expensive products and pay a certain amount each month, this would also cause us to buy more things which are not needed end land us in debt trap.

5. Start with protection:

Being your twenties means that you are freshly out of college. Few years down the years, you get into family life, get responsibility. You can't afford to extend a carefree life.

Most of the companies do offer health benefits to its employees. Take full advantage of this, else take health insurance to avoid the expensive medical bills. It is vital for you to get your life insured. The property you own, the business you own must be protected to avoid any unnecessary loss. Ideally, this will save your family, financially in case of any unfortunate event. Remember tax benefit is a by-product of any insurance.

6. Think small to achieve big:

Slice and dice is the golden formula for every success story that we have ever heard. No one can accomplish everything straightaway. It is always wiser to start small because, not only will it be easier to make, but the happiness felt out of achieving it will keep you motivated. Once you achieve your short-term goal, set a new one. This will ensure that you eventually meet your long-term goal as well.

7. Have control over your lifestyle costs:

Having control over your expenses is crucial. Instead of living a luxurious life today, think about your future as well. You wouldn’t want your luxurious lifestyle to have a toll on your future now, would you?

Legendary investor Warren Buffet quotes, If you buy things you do not need, soon you will have to sell things you need.

8. Make your money work for you:

You can't always keep working hard and expect to be financially secure in due time. Not only is this extremely tiring, but will also waste a lot of time. And life may throw surprises which may bring financial disastrous. So, won't it be great if your hard earned money could further work for you?

Make your money beat inflation and grow in folds by prudent investing. 90% people lose money to inflation and tax. Concentrate on what your investment make after the cost, tax and inflation. If you have done your homework right and acted, you can lay back and observe as its value increases, in most cases. Don't forget to review on a periodical basis.

9. Stay Away from Debt

Debt by itself is a career killer in most cases. Falling prey to debt is almost equivalent to failure. Taking a loan for higher education or home is different and taking a personal loan for the reception, car, vacation and credit card EMI for likes of TV/mobile is different. If you can understand the difference and act smart, you will be financially free sooner. Your EMIs may limit your capacity to invest for future needs and goals. Turn your EMIs (Systematic Debt Repayment) into active SIPs (Systematic Investment Plan).

10. Be a man with a plan:

Just dreaming or knowing what your needs and wants will not cut the deal either. 7 in 10 people are not even thinking of the future. As humans, we all tend to forget things reasonably quickly.

Research has proved time and again that people with a solid plan for their future end up being very successful. You should always set a clear goal which answers what and when. Next is identifying ways and means to achieve goals. Hence, writing down our goals and plan of action for completing it will surely keep us motivated towards the desired outcome.Bringing all your finances together is indispensable and makes perfect sense as everything is closely interlinked.Professional financial planners can help you in charting and reviewing your financial plan.

If you consider all these above methods, achieving financial security before you turn thirty will turn out to be a piece of cake.