Do you remember how wonderful the college days were? We didn’t have to worry about investment schemes, EMIs, jobs or businesses. However, as we have grown older, we have begun to have many plans for our future. We have goals for the retirement list but are unsure how to achieve them. Moreover, as you reach your 30s, many of you may become breadwinners, so avoiding the common investing mistake people make in their 30s is crucial.
Here are the five mistakes you should avoid when entering your 30s.
#1 Investing mistake – Not having clear goals
As you are in your 30s and still trying to figure out your goals, it will be too hard to plan for retirement. If you’re planning for your retirement, focusing on wealth creation through investing is essential. You should have your emergency fund, insurance, and wealth as per your inflation as per the year you will retire; for that, you should be clear with your goals.
#2 Investing mistake – Investing once
New investors commonly make the mistake of investing all their savings at once due to excitement and encouragement from incomplete videos or reels. They start their investing journey without discussing it with experienced professionals once and invest their hard-earned money without doing reach and analysis. But it doesn’t mean that experience people don’t lose money. They also lose money but are ready with that mindset and plan to experience that phase. If you are new to investing, it is recommended that you consult with an expert or financial advisor before investing all of your money at once. They can guide you to ensure that you make the correct investment decision.
Many investors start investing but don’t track their portfolioperformance regularly. It is essential to track the performance of the funds, that is, the fund performance and whether your aligned goals will work in the future If you are getting the returns from that fund, then you must find the correct one as per your goal.
#4 Investing mistake -Investment without considering Inflation
When planning for investment, it’s common for people to overlook certain factors. One of the factors is inflation. If you plan to start your investment journey in your 30s, consider factors outside your control, like economic risk. And if you want to fight inflation, you must have insurance which includes the “increasing sum assured” option.
#5 Investing mistake – Staying in your comfort zone
It’s essential to recognize that staying within your comfort zone will only sometimes work. This has become especially clear during the COVID-19 pandemic, as everyone has had to navigate unprecedented challenges. Surviving future difficulties may be difficult if you’re unwilling to step outside your comfort zone. You can start small, like investing a small amount in a mutual fund, to prepare for the long term.
#6 Investing mistake -Postponing investment
If you are delayed in investment due to less income, don’t worry; now you can only start investing with less money, with Rs 500. If you are planning for long-term planning, then a mutual fund SIP(systematic investment plan) is the best option. Suppose you start your investment with a monthly SIP of Rs 4,000 in your 30s for an investment period of 15 years with an interest of 12%. Then your total amount invested is Rs 7,20,000, wealth gain will be Rs 12,98,304, and the total amount will be Rs 20,18,304. So now you can start investing even if your income is low and plan your retirement.