In your 30s? It’s still not too late to begin saving yet
Investments and savings are quite far-fetched till you are well into your 30s. The initial earning years of every woman are usually spent in making your ends meet with large credit card bills, high-end mobile phones, etc. It is only in your 30s that most people start thinking about savings, investments, longterm goals and retirement.
So, if you are an independent earning woman in your 30s and still haven’t had an opportunity to start your investment portfolio, you are not the only one. According to a global research by Nielson and DSP Blackrock, only 23 per cent of working women take their own investment decisions and out of them, 18 per cent are single working women. The rest either depend on their male counterparts, spouse or parent to take the decision on their behalf or jointly take the decision.
So, if you are 30-something and “thinking” investments, you are surely on the right path. With the evolving times, a woman is no less than men in any way. There was a time when they were expected to take care of the family and house. But now, women have taken a lead in the work front too. Let us discuss a few options related to investments which are suitable for you. Investments should be done for three purposes: > Contingency or emergency where the risk should be minimal > Short to medium-term goals > Long-term goals
But before we step into investments, the protection factor needs to be considered.
Life and health insurance
Buy a life insurance plan which will not only give you protection but also provide financial assistance to family members. The first step towards making investments is to insure your health and wealth.
Health insurance
Inflating medical costs are a matter of worry for everyone and with our hectic lifestyles, everyone is at risk of contracting deadly disease/illness. The sum insured should be selected depending on the rising medical costs. The number of members you want to insure will play a major role in arriving at the appropriate sum insured.
Income protection plays a key role while planning investments. You can have dependent parents or children or both. While planning for a life insurance policy, ensure that the sum assured is sufficient to take care of your family in case of any unfortunate event. Women usually have a shorter career span than men, either for family reasons or health or children. Hence income protection becomes even more important.
What to look for in life insurance
> Your financial goals (amount of corpus fund you want to accumulate after incorporating inflation) > Reputation of the insurance company and its claim settlement ratio > Insurance products offered by various insurance companies and the various types, which suits you most and why > The sum insured and the premium, i.e. the cost-benefit analysis > Other details such as type of plan needed, tenure, etc.
Here is the list of six things you should consider while buying a health plan for yourself and your family: > Network hospital for availing cashless facility > Deductibles and co-pay sub clauses/room rent limits > Adequacy of sum insured > Name/reputation of the insurance firm and incurred claim ratio > Maximum age covered by the plan > Health plans offered by health insurance service providers
After your basic protection is taken care of, you need to consider building your wealth portfolio. The first step is to build your contingency fund, with at least six months’ of savings for rainy days. The emergency fund needs to be kept in as liquid an asset as possible, even if that means a low rate of interest.
Then comes your mid and long-term goals for which you need to start planning diligently and patiently. The key to a healthy long-term portfolio is consistent investments over the years, which help multiple through the power of compounding. So, keep going and after reading this article, you would be confident about the available investment options and which will fit you the best. So, stop worrying about making investment decisions, be bold and give it a buy.