Be it business events and seminars, casual dinners, or even parties, everyone present is looking for some guidance or wealth creation tips to better their finances. In the recent past, this topic has spiraled into the minds of the millennial generation. With the foundation of an education and a career laid in their 20s, this generation is looking to build on that understructure in their 30s, propelling themselves towards wealth creation.

Also Read - What is Wealth Creation?

Various self-made millionaires believe in making money work for them round the clock. This simple thought process has helped achieve financial freedom earlier than anticipated. So how does one make their money work for them? The first step would be to accumulate corpus over time to put it to work. This can be done by controlling your expenditure.

⮚ Spend what is left after saving and not the other way around.

Monitoring your spending habits is key to wealth accumulation. This may sound pretty obvious but spending more than what you earn or save can have severe effects on your personal finances. A good way to inculcate this habit is to make a budget aligned with your financial goals. This will help you keep track of your expenses. Knowing where you’re spending most of your money can sometimes be an eye opener. Being frugal can help accumulate a corpus that can be put to work through investments or can be saved for a rainy day.

⮚ Avoid taking debt and plan for your goals.

Taking debt when in your 30s can have a negative impact on your current savings and also on the long-term accumulated collection. Goals of financial management can be set earlier on. This includes organizing and directing your finances towards the desired growth. Planning for short-term goals and long-term goals are equally important. Short-term goals can be daily expenses or leisure expenses. Long-term goals may include a Child’s education and/or marriage. This process can be streamlined using a financial goal planner.

Planning for retirement in your early 30s also forms an integral part of wealth creation. A retirement savings planner can help you plan the amount needed to maintain your lifestyle for a considerable period after retirement.

An emergency savings planner can be used to collect a certain amount of funds for unforeseen circumstances and events. This can help reduce the dead weight on your investment savings and retirement corpus.

⮚ Invest mindfully and cautiously.

When in your 30s it is easier and recommended for you to put your savings into more aggressive instruments like equities and/or corporate bonds. These instruments carry the element of risk. With a constant stream of income from your primary job or business, these risks can be taken to yield a reasonable rate of return in long run.

To reduce these risks, one can invest in vehicles managed by experienced and professional fund managers with a team of highly qualified analysts. For people having less or no knowledge about the instruments mentioned above, systematically investing in such a fund can be an option.

This can enable you to take advantage of the reasonable-yielding instruments without worrying about the risk factors like stock selection, market timing, or diversification. They can also assist in a goal-based financial planning if there is a requirement of funds at regular intervals.

Setting goals earlier on is the most important step in the process of wealth creation. Once a goal is set, then execution by the individual is key. Investing also requires implanting the correct mindset and attitude with a certain amount of discipline. Investing constantly throughout your 30s and further on will help you take advantage of the compounding effect of the returns offered by some of these funds.

So go ahead and own your 30s and the life beyond.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.