Money Moves to Make Before 30: A Practical Playbook

Build the safety net first

• Emergency fund: Save 33–66 months of essential expenses; if self‑employed or supporting dependents, target 66–1212 months in a high‑yield savings account for instant access.
• Insurance basics: Secure affordable term life (10–15× annual income) if others rely on earnings, and comprehensive health insurance to prevent a single event from derailing savings momentum.

Kill expensive debt

• Prioritize high‑APR balances with the avalanche method while making minimums on others; consolidation can simplify payoff if it lowers the effective APR and total interest.
• Keep credit utilization under 10%10% and avoid new hard pulls to protect credit scores, lowering future loan and insurance costs across the next decade.

Put compounding to work early

• Automate investing: Start SIPs/automatic transfers into diversified equity index funds or target‑date funds; raise contributions with every raise to capture lifestyle inflation productively.
• Retirement accounts and tax shelters: Use EPF/401(k)/NPS/IRA/PPF as applicable; NPS allows tax benefits up to ₹1.5 lakh under 80CCD(1) plus ₹50,000 under 80CCD(1B) in India, accelerating corpus growth via tax savings.
• Rule of 72: Estimate doubling periods quickly—at 12%12%, money doubles roughly every 6 years, illustrating the outsized payoff of starting in the 20s versus the 30s and beyond.

Protect against big risks

• Adequate coverage: Add disability insurance if employer coverage is thin; review riders and exclusions annually as responsibilities grow.
• Build skills and income: Invest in certifications or degrees that raise lifetime earnings; higher income amplifies savings rates and retirement contributions over decades.

Systematize money management

• Budget and automate: Use a simple 50/30/20 or zero‑based budget; automate bills, investments, and savings to reduce missed payments and decision fatigue.
• Avoid lifestyle creep: Channel raises to savings first; set guardrails for housing and car costs to keep fixed expenses flexible through career changes.
• Plan the paperwork: Start a basic estate plan—nominees/beneficiaries updated, a will, and if needed, a simple power of attorney/medical directive.

Quick milestones checklist

• Emergency fund of 33–66 months (stretch to 1212 with dependents or variable income).
• Term life and health insurance in place; review annually.
• High‑interest debt paid off; credit utilization under 10%10%.
• Automated investing into low‑cost equity funds; retirement plan contributions on auto‑increase.
• Use tax‑advantaged accounts like NPS/PPF/EPF/IRA; capture additional NPS ₹50,000 deduction in India when eligible.
• Beneficiaries, will, and key documents organized and shared securely with a trusted contact.

FAQs

• How much should be invested monthly before 30? Start with at least 10%10%–15%15% of income and step up with every raise; earlier contributions compound most powerfully.
• Emergency fund or invest first? Build at least one month rapidly, then split between emergency fund and investments until reaching 33–66 months; this balances resilience with compounding.
• Which retirement account first? Use employer match accounts first (free return), then tax‑advantaged vehicles such as NPS/PPF/IRA based on tax bracket and liquidity needs.
• Does timing the market matter? Time in the market beats timing; automate SIPs/DCA and review asset allocation annually instead of chasing entries.