Saving money to secure your future is a basic financial practice. It is the best way to organize your income in the early 30s. When you really don't know what exactly you need to do with money, a savings plan can be an option that will anyways benefit you someday! As a moral obligation, if you are an earning member of the family, you must purchase savings insurance for ensuring your family's financial protection.

Let us go ahead and understand why you need to focus on such savings objectives in the early 30s in a little detail.
 

1. Lack of exposure on investing
    

   When you are in your early 30s, you must have just started your career, and there are not many financial commitments. In the urge of making more money, you tend to orient towards investing. The interest in experimenting with various financial instruments is certainly high. And with the idea of making more returns, you tend to take very high risks by investing more money.  It is not a bad notion. Investing has a lot of benefits on growing your wealth.

   
   However, you lack exposure to the investing platform. It is a wide market arena with many players having their distinct positions witnessing challenges every day. As a beginner in the early 30s, if you get into the practice of investing, you might get into financial distress. Without clarity on the stake of money you have invested, you cannot proceed with investing more. A savings insurance plan will be an ideal choice in this case. You can safely pack your money reserve for your future needs and financial protection.

   
   You can start investing gradually by learning the different concepts. With expert guidance and support, you can diversify your portfolio and try various strategies to find the right way to progress. Also, by setting a risk tolerance level, you can limit your exposure. However, the returns are not always guaranteed¹. And, as the quantum of money is slightly high in the early 30s, prioritize to focus on a savings plan so that it is safe and available.




2. Importance of Guaranteed¹ Income Plan

   
   If you have decided to save money and are confused about how to do it, a guaranteed¹ income plan is the best option. It is a money-saving plan introduced by insurance companies for providing insurance and savings benefits. There are flexible features that help you customize the plan as per your needs.

   
   Like in any other life insurance plan, you will be paying a premium amount regularly. It will provide a sum assured to your nominee in case of your sudden demise and, additionally, guaranteed¹ returns. The returns are provided as a maturity benefit. There are different payout options to receive the maturity benefits. You can receive it as a lump sum amount or as a regular monthly income. TATA AIA pay premium provides the flexibility to choose the premium paying payment mode and frequency. If you have decided on the monthly savings plan, you can choose the income period as well.

   
   If you are the sole earning member in your family in your early 30s or your family depends on your earnings for a certain proportion, you have to ensure it at different stages in their life, even in your absence. The plan provides a life cover with add on rider^# benefits. For example, there is the critical illness and the terminal illness benefit rider^#, total and permanent disability rider^#, waiver of premium rider^# etc.,

   
   As the returns are guaranteed¹, you can plan for a long-term financial commitment such as children education and marriage. The longer you stay into with this insurance savings plan, the better are the benefits. Also, as the plan offers regular monthly income, it is a good retirement planning option. If you feel the extent of financial commitments will keep increasing in your family, start with such a savings plan in your early 30s to guarantee a good proportion of money.




3. Need for calculated risks

   
   

   
   In your early 30s, you will have different passions or a dream that you wanted to pursue. For example, starting a new business. A new venture with an innovative idea will definitely become a huge success. However, uncertainties in life can delay it or require more investments to handle the operations. A sufficient fund to start the business, invest in expansion and recover from losses is certainly essential.

   
   Starting a business based on your income or from the returns associated with your investments will not work. It will not ensure the required fund when it is necessary. A savings plan with guaranteed¹ returns can help you manage such scenarios and take up a calculated risk.

   
   It will serve as a strong backup and urge you to explore new opportunities. By saving regularly and over a long period of time, you accumulate a lump sum amount. It will lead to working on your desires and becoming financially independent in the future. Choose a savings plan that will be comfortable based on your income.

Conclusion

The early 30s is the right age to start saving money in your life. We have seen the importance of saving early for the future. It will provide financial protection and restrict investing where the returns are not guaranteed¹ and make way for a calculated risk. Now, it is high time you make a decision.

The proportion of money you want to save depends on your current financial position, financial commitments, and steady flow of income. Focus on savings insurance for comprehensive benefits and stay invested for maximum protection and benefits!

L&C/Advt/2023/Jan/0294