India is quite a young country. In fact, the average age of Indian population in 2020 is 28.4 years, according to data presented by Statista. While 50% of the population is below the age of 25 years, more than 65% are below 35 years of age. According to a report by Morgan Stanley in 2019, India has more than 400 million millennials; those born between 1983 and 1996, and account for the country’s 46% workforce.
This means a large number of Indians would soon turn 30 in 2020 and beyond. Turning 30 is a major milestone in life, that comes with greater responsibilities marked by changes in career and personal lives.
If you are among those approaching 30 in a short time, here are some essential areas you need to plan for.
Buy a House
Owning a house is associated with prosperity and stability. And as you approach 30, this might be something you want in life. Home loan options have become vast in few years, with improved accessibility. Today you can get home loans ranging from ₹ 3 lakhs to ₹ 5 crore, in as less as 72 hours for your choice of property; whether you are salaried or self-employed.
Government schemes such as PM Awas Yojana or PMAY have made them more affordable.
What is PMAY?
PMAY or PM Awas Yojana is a housing scheme of Central Government, under which you can get subsidy on the home loan interest rate. For LIG, the interest rate subsidy is 6.5%, for MIG I it is 4%, and for MIG II it is 3%.
How to apply for Pradhan Mantri Awas Yojana?
For this, you need to download and fill the self-declaration form and submit it to the nearest bank branch that is offering this scheme. You will also need to submit original ID proof along with Aadhar cards of all family members.
As you approach 30, your responsibilities are going to increase. You might get married and have children. You would have to think about their future. Some of you might want to start a business in the future. And for all of this it is important you start saving and investing.
If you are considering something risk-averse, you can invest in fixed deposits. These are highly secure investments and can provide an interest of up to 7%. They even provide tax benefits. If you do not want to make lump sum payments, then you can go with recurring deposits, where you will make regular payments each month.
For higher returns, you can go with mutual funds. But know that mutual fund returns are subjective to market conditions and you should be aware of terms and conditions before investing.
Get Health Insurance
Healthcare inflation is rising at a staggering rate globally. In fact, the projected medical trend rate in India for 2019 was 9.3%, while the inflation rate was 4.9%, which is almost twice the trend rate, according to 2019 Mercer Marsh Benefits Report. Paying medical costs for yourself or family members, without a medical insurance can erode your savings and investments. Therefore, before you turn 30, getting a medical insurance can be a great idea.
With schemes like PM Awas Yojana, the Indian government is trying to make youth from all sections of the society self-reliant. However, smart decision making is required as well. Before making any investment, consider researching in great deal about the market conditions.