If you’re worried about saving enough when you’re 32 and married, you are not alone. An overwhelming majority of people usually ask this question in their 30s. While savoring life’s pleasures is definitely on top of your agenda at the moment, savings are equally important for sustaining you in the long run.
This question assumes even higher importance when the following scenarios are considered, which usually apply to most individuals in their 30s-
- Recently married, beginning to come up with joint goals
- There may be children or plans to have a child
- Expenses have increased as a family unit including shifting to a bigger house
- Long-term planning starts becoming important
- Sudden job losses can be hugely detrimental to the entire stability of the household
- A home loan may be serviced along with other loans
When you take these scenarios into account, it is imperative to find out whether you are saving enough money after meeting all your obligations. The first thing to keep in mind at this juncture is that a loss of your job or income can be problematic for the family. You should save for such situations. Fixed Deposits are suitable investments in this scenario. You can easily open an FD with a leading bank or NBFC. Compare rates and other terms and conditions before making a fixed deposit investment. You can also use a FD calculator to find out the returns that you will be getting. The moment you have a surplus saved up, invest it into a fixed deposit.
You should save at least 1/4th of your monthly expenses every month. For example, if Rs.10,000 is what you spend monthly, you should save Rs.2,500 every month. You should also start making an investment in India for taking care of goals like the education and weddings of your kids. This involves an investment horizon of 15-20 years and FDs also work in this case. You should ideally set aside 10% of your salary each month for this purpose.
You should also have a solid plan for your impending retirement, no matter how young you are at the moment. This is a major goal and it is vital to start as easy as you can if you want to be financially comfortable when you retire at 58/60. You should check out fixed deposit plans for this purpose along with other equity mutual funds if you have a higher risk appetite. This is an investment spread over 15-25 years, but you should start at the earliest. 10% of your salary should be set aside for your retirement fund.
You can easily harness the benefits of compounding when you are in your early 30s, provided you start quickly without further procrastination. Having age on your side is a major advantage. Make it work for you!