Getting married, buying your own home, or even starting a family, your 30s can bring in many life transitions. But have you done everything necessary to make sure these transitions are smooth? Let me simplify the question. Do you have a financial plan in place that would make your 30s wonderful and the coming years peaceful? Not yet? I can help. 

I am sharing with you the five most important money management tips that will help you tremendously in financial planning. Read through each one of them very carefully. 

Set Financial Goals  The first step to formulating a financial plan is to sit down and write your short-term and long-term financial goals. And once you do that, start your research to be able to meet them. For example, if you want to take a trip to Italy within a year or two, find out how much it would cost you so that you can spend and save accordingly every month. This is equally important for long-term goals. For example, if you plan to buy a home within the next 5 to 7 years, you will have to gain a decent understanding of what the down payment, monthly installments, and interest rates will be like. A clear picture of your goals will help you take the next step wisely. 

Start Saving  Once you set the goals, itÂs time to adopt better money habits and start saving. And for me, the mantra to saving is  Âknow your expenses. Not only should you save a certain percentage of your income every month, but you should also know what and where youÂre spending. ThatÂs because you canÂt control your expenses if you donÂt identify the unnecessary ones. 

Follow these steps to save better:

• Record every expense, no matter how small it is. You can download an expenditure tracking app or use an excel sheet as per your convenience. 
• Make a note of the necessary expenses such as rent, bills, grocery, medical, etc.
• At the end of the month, identify the unnecessary expenses  for example, frequent Starbucks bills  and decide how youÂre going to eliminate them or at least replace them with a cheaper alternative. 
• Budget your money in a way that thereÂs no or just a small window for unnecessary expenses.
• Stick to the budget and save the rest of your monthly income. 

Pay Off Debts  Have a look at your credit card debts and other loans, if any, to see if youÂre doing everything possible to minimize the amount you owe. If youÂre making just the minimum payments or paying only the interest amount every month, you will never be able to get rid of the debt. And on top of that, your cibil score would take a hit. So, give up on the luxuries and pay off your debts as soon as possible. 

If you have multiple debts, consolidate them into one single debt by taking a personal loan. Keep the repayment period short so that you can pay off the principle amount quickly. The longer you take to repay the loan amount, the more interest you will end up paying. Once you pay off the debt, money from your income will be freed for more savings. 

Invest in Health Insurance  We all know that healthcare has become very expensive. In fact, Indians spend over 62% of their savings to meet health expenses. So itÂs best to buy adequate health cover, especially if youÂre 30 years or older. ThatÂs because our metabolism slows down in our 30s, making it easier to gain weight. And this may leave you at a higher risk for fatigue, cholesterol, diabetes, heart disease, arthritis, etc. 

If youÂre covered under a decent health insurance policy, you can claim basic health expenses without having to spend from your pocket. Moreover, you can get cashless treatment (payment made by insurance agency directly to the hospital) in case of an emergency, which means you wonÂt have to dig a hole in your savings.  

Save for Your Retirement  DonÂt wait for that big promotion to start saving for your retirement because if you want a comfortable retirement, you will have to start now. Try to make at least minimum contributions towards it. Also, many employers match their employees contributions towards their retirement up to a certain percentage. So, learn about the matching contribution policy in your company and ask your employer what you must do to become vested. 

You canÂt conquer anything overnight. So, donÂt give up if you canÂt get it right initially; keep trying to improvise your financial plan every day. 

I hope these tips were helpful. 

The author Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge the name change) and works with MoneyTap, India’s first app-based credit-line. Shiv is a true finance geek, and his friends love that. They always rely on him for advice on their investment choices, budgeting skills, personal financial matters and when they want to get a loan. He has made it his life’s mission to help and educate people on various financial topics, so email him your questions at shiv@moneytap.com.