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Sure, marriages are made in heaven, but there’s a lot going in the lives of singles too. Being happily unmarried means you have no dependents – be it a spouse or a child. You are young, healthy, and making your own life decisions. There is nobody to tell you what to do, and even better, nobody can mess with your plans. You could be happily unmarried by circumstance or choice. Whatever may be the reason, here are five things every single person must do in order to be truly financially independent.
- Create an emergency fund
Emergency funds help to prepare for an unexpected event and also helps to deal with the uncertainties. It ensures that you are fully prepared to face the storm. Preparing for an emergency could be anything from a minor accident, to a job loss, to a death of a close one. A good habit is investing your funds in liquid funds so that you can redeem your funds whenever need be. Financial advisors and experts advise keeping at least 3 to 6 months of your basic salary.
- Get your health insured
It’s important to get a health insurance, even if your office provides for one. A health insurance will cover your medical costs in case of any accidents or critical illness as mentioned under the policy. Unless, you have a dependent, do not bother to invest in a life insurance policy.
- Ensure that you have created a retirement corpus
Retirement planning is one of the most important aspects of financial planning, especially for an unmarried person. You might consider investment options such as National Pension Scheme (NPS), Pubic Provident Fund (PPF), and EPF (Employee Provident Fund) for retirement. Apart from that, make sure to build a robust retirement strategy and invest in equity funds, so that your mutual fund investments fetch desirable returns when exposed to a long duration. You might consider investing in ELSS (Equity-Linked Savings Schemes).
- Other investments
Considering your financial goals and objectives, invest in mutual funds and other types of investments. While choosing the right investment for your portfolio, make sure that it aligns with your financial goals, investment horizon, and risk appetite. Ensure that you have a healthy mix of equity, debt, and hybrid funds as per your asset allocation.
- Nominations and wills
This is often an ignored financial aspect by most single investors. Ensure that you have relevant and valid wills and nominations in place. Even if you are happily unmarried, if you have earned assets or created wealth in your life. So, having a will in place is a necessity.
Sure, it may be difficult for the society to first accept your living position. But, life as a single person can be quite fun, given that you have enough disposable income. The biggest mistake you can make is living it up with credit cards and falling into a debt trap. Try to avoid that. Happy investing!