As you keep working on your career, aspirations, and dreams, it helps if you set your financial goals through the timeline of your age. You can start by analysing how much money should you save by the age of 30. Check out this blog to know more.

Your thirties can be an exciting time - you may be starting a new job, earning a higher salary, and feeling more financially stable. However, it's also important to consider your long-term financial goals and ensure you're on track to meet them.

One key aspect is having a solid amount of savings by the time you turn 30. Even if you're past 30, you should ask yourself, "How much money should I have saved by 30?” to assess your current financial situation. But how to know the right amount to save by 30? Let's find out.

Factors to Consider While Determining the Amount You Need to Save by 30

● Contingency Fund

Financial emergencies tend to strike more frequently as you age. And that’s why one of the first savings goals you should focus on is to create an emergency fund. This fund should be able to support your living expenses, such as rent, food, and bills. This can help you cover any unexpected expenses that may come up, such as a sudden job loss, medical emergency, etc.

Now, if you’re wondering, “How much should I save for an emergency?" consider this simple rule. Aim to have at least one year's worth of your salary in your contingency fund by the time you turn 30. However, this figure might go up if you have more dependents.

● Retirement Savings

It's never too late to start saving and even investing for retirement. However, the earlier you begin, the more time your money will have to grow. You can do this by building a retirement portfolio consisting of various investment products like long-term mutual funds, fixed-return instruments, etc.

Contribute a significant portion of your earnings to your retirement fund once you reach 30. This is because you are still likely to have a lesser burden of family expenses or kids' education, and it can be a good time to invest more regularly.

Also Read: How to Plan Your Retirement with Mutual Funds?

● Debt Repayment

Many in their 30s go overboard with taking more loans. Whether it's for that new car or a dream vacation, the debts tend to pile up. However, paying off some of your debts by the time you hit your 30s is crucial. You'll likely shoulder more responsibilities after 30, such as starting a family, supporting your parents, buying a home, etc. While it may not be possible to go completely debt-free, you can try to pay off a significant portion of your total debts. For example, you can aim to pay off your student loan, car loan, etc., by 30.

Besides boosting your credit score, reducing your debt can allow you to explore various investment avenues. Moreover, you can consider investing the saved money for a better future.

● Saving for Future Goals

Saving for your goals can provide you with a sense of purpose and direction. As a result, you can focus your efforts and motivate yourself to save better.

However, future goals, both short-term and long-term, can vary depending on individual priorities. So, determine your goals and plan your finances accordingly. This might include saving for a down payment on a house, a future wedding, a business venture, or a dream vacation. While these goals may seem far off, it's essential to start saving for them as soon as you reach 30.

So, consider the timeline and amount needed to achieve your goals. Then, set a realistic target and break it down into smaller milestones. This can help you stay on track and monitor your progress. It's also a good idea to regularly review your goals and adjust your savings and investment plan as necessary to ensure that you're on track.

Also Read: How to save for multiple financial goals

Smart Saving for Smart 30s

The above-discussed points can help you analyse your financial standings and arrive at a solid figure to save as you turn 30. Don’t be overwhelmed if it seems like a large amount of money to save at first glance. The purpose is to prepare yourself for the level of financial commitment required to fulfil your dreams. For example, consider developing a financial discipline by investing regularly through Systematic Investment Plans (SIPs).

To wrap it up, plan and save intelligently in your 30s that may help you in the later stages of life.

It is an open-ended scheme that aims to provide long-term capital appreciation with reasonable returns and lower volatility.

Also Read : Power your Dreams with an SIP in long run

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