Are you single? Well that’s great because you are living a free and adventurous life at the moment. But have you thought of the financial responsibility that awaits you the very minute you tie the knot? Take advantage of this period where you have to spend and save for only one, as opposed to two once you get married.
Check out 5 of the most important financial goals for singles in India.
Financial goals for singles: Plan for a home
One of the most common things that singles often overlook is the need to invest in property. You may be enjoying the perks of being single in your 1 BHK rented pad, but that will end the very minute you settle down. Stretch out for seeking multiple revenue streams each month if you have to take a home loan and pay EMIs, but now is the correct time to invest in property, prices of which are only going to become unaffordable later on. If your budget is low, try scouting for a home/apartment in new or upcoming areas/suburbs in your city.
Financial goals for singles: Plan for further education
This finance goal for singles in India also applies to people who have started working immediately after their Bachelors degree. You may have secured a plum managerial role because of your efficiency at work, but are you sure you will not require a Masters degree, a technical diploma or other certificate degrees later on in life? A degree can often be the piece of paper that will push you up a couple of notches on the corporate ladder. You should be financially planning for higher education not only will you be spending for fees, but also for the time you take leave from work.
Ask anyone who has been successful in investing in stocks and equity "Is there anything you regret?" and they will be quick to answer "I wish I had started earlier" You don’t need to be a wizard with numbers nor do you need to be up to date with the business world to invest in stocks. Yes, these things will help but if you aren’t, have a chat with your bank manager and avail the basic services of an investment manager. Private banks generally offer these services for free.
Opening a DEMAT account is easy and all you need to do is sign some paperwork and the bank rep will usually take care of the rest. Once you have your DEMAT ready to go, all you have to do is call your bank’s broking team and tell them what shares you want to buy. The money will automatically be deducted from your account and you will receive a digital certificate from your bank and correspondence from the company reps. No paperwork, no hassle. Sounds easy, doesn’t it?
Financial goals for singles: Plan for retirement
Similar to something we discussed earlier, ask any retired professional "When should I start saving for retirement?" and they will answer "Now".
Many make the mistake of not realizing the importance of saving for retirement until it is too late. If the thought of investing for retirement sounds too boring for you, simply open another savings account in which you can deposit a small amount of money every month and forget about it. It may seem small amount right now, but over time, it will accumulate up to something considerable.
Another simple yet effective option to invest for long term is a recurring deposit. Tell your bank to start a recurring deposit account where you can nominate a certain amount to be deducted from your account every month. The term of a recurring deposit can be renewed every year and before you know it, your savings will be a considerable chunk which you can later invest into a full fledged retirement scheme.
Financial goals for singles: Plan for travelling
If you think that setting a financial goal for your travelling needs in the future is too miniscule to worry about, let’s take a realistic check on what to expect if you want to travel to a foreign country today. Here are general rates that leading travel agencies currently offer.
- A 6 night 7 days holiday package to Australia starts from Rs. 1,04,990 per person
- A 9 nights 10 days holiday package to Egypt and Turkey starts from Rs. 1,31,899 per person
- A 9 nights 10 days holiday package in and around Switzerland starts from Rs. 1,36,507 per person
We still haven’t added the shopping, eating out and drinking to these costs. You get the point, don’t you? If you want to travel abroad, you will need to start some serious financial planning, today!