Investment Decision You must make by the age of 30

30 is the age when consolidation phase of our life starts. By 30 most people’s career get settled. When we start earning, we tend to spend more.

When time passes and some need arises, we wonder where is our money gone. We then think OMG! we have earned this much and we only save a little. That time we realize that we should have saved some money.

“Remember Income is not what we earn, Income is what we save.”

We should save a portion of money we earned irrespective of how much we earned. Earning more does not guarantee that you will save more.

Now when we decide to save or invest, we face a tough question where should we invest???? So here is your answer. These are some investment option where I think we must start investing by the age of 30.

1. PPF:- Public Provident Fund (PPF) is the most popular investment option in India. It not only provides good return but also tax benefit. It is the only investment option of EEE category which is open to everyone. EEE (Exempt, Exempt, Exempt) means Investment made by you, interest on investment and lumsum payment on maturity everything is exempt from Income Tax. You can open a PPF A/C in any bank and post-office by depositing only Rs. 500. It is a best long term investment option if you want wealth creation as well as tax benefit.
2. NPS:- National Pension System is the government sponsored pension scheme. There is no retirement pension in any government or private organization except some. If you want to secure your after retirement life you can subscribe to NPS. You can get deduction of Rs. 50000 under sec 80CCD in addition to Rs. 1.5 Lacs under sec 80C in Income Tax if you invest in NPS-Tier 1. You can open a NPS A/C in any bank.
3. Life Insurance:- As soon as You start earning you must take a life insurance policy. It is always beneficial if you take a life insurance policy in early age. The premium of life insurance goes high with age. There are many Life Insurance Plan offered by various companies. You can buy a plan as per your need. But You must buy a Term Insurance Plan even if you have taken any other Insurance Plan. Because Term Insurance Plan gives you highest term assured in less premium. Investment up to Rs. 1.5 Lac in Life Insurance is deductible under sec 80C in Income Tax.
4. SIP:- Systematic Investment Plan is the most popular mode of investing in mutual funds. SIP is like R.D. You can invest a fix amount monthly over a period of time. The amount can be as low as Rs. 500. There is no upper limit. Mutual Funds are best option to take advantage of fluctuations of Share Market without taking much risk. In present scenario when Indian Economy is fast growing economy in the world, you can take benefit of it by investing in Mutual Funds. So If you want to maximize your wealth in long-term you should start SIP as soon as possible.You can start a SIP through a Bank or Directly online.
5. Shares:-If you want to invest in share market then it is the right age. This is the age when you can take risk because investing in shares is a risky business. You should invest in shares if you have understanding of share trading. It takes attention and expertise to take benefit from trading in share market.
6. Housing Loan:- If you want to own a Dream Home and You can manage EMI of Housing Loan take a housing loan in early age. Taking a housing loan is better than saving the money and then buying a property. If you buy home by taking housing loan, It will give you many benefit. First, It is a fact that property will be costlier in future and if you buy it now you will save a significant amount of money. Second, You will save rent you are paying. Third, Repayment of housing loan is deductible under Income Tax.

I hope you have found these option useful for making your investment decisions. I advise you to take your decision very carefully and thoughtfully so that your hard earned money will always be safe and productive.

Happy Investing.