20-30-40 is the real formula of life, from savings to house... financial checklist is necessary for everything..

In today's life, money planning is as important as taking care of one's health. If the right financial decisions are taken in time, the future can be safe and prosperous. Such is the story of Dipanshu, who followed the financial checklist in his 20s, 30s, and 40s and today is living a stable and balanced life.

Formula of 20s

As soon as college was over, Dipanshu got a job in a multinational company. The initial salary was not much, but he understood that it was important to start saving, even if it was small.

Dipanshu started investing ₹5000 every month in SIP mutual funds. He knew that the magic of compounding would give him a large corpus in the long run.

Apart from this, he bought a health insurance policy at the age of 24. This decision proved to be a masterstroke for him because later, many times, small medical expenses were covered by it.

While many people get bogged down with credit card bills and personal loans at this age, Dipanshu strictly stayed away from debt. He believed, "Less spending means more savings." This thought from his 20s became the foundation of his financial journey.

Dipanshu is in his 30s

By the time he was in his 30s, Dipanshu's salary had grown significantly. He now had responsibilities, a wife, two kids, and elderly parents. This was the time when he took financial planning to the next level.

Dipanshu created a separate fund for his children's higher education. He bought an education policy and child plan so that he would not be suddenly burdened with fees in the future.

At the age of 33, Dipanshu bought his first house. Though he had to take a home loan for this, he kept less than 30% of his salary for the EMI. This did not affect his other savings.

He deposited an amount equivalent to 12 months' expenses in an emergency fund. He kept this money in highly liquid instruments so that it could be used immediately when needed.

By maintaining the right balance in his 30s, Dipanshu not only fulfilled his responsibilities but also ensured financial security.

Path to retirement in his 40s

By the time he entered his 40s, Dipanshu had reached the pinnacle of his career. Now his focus was on just one thing: making his post-retirement life comfortable.

He increased the amount of his SIP and mutual funds. Now he used to invest more than ₹30,000 every month so that he could create a sufficient corpus by the age of 60.

Dipanshu did not depend only on equity. He also invested in PPF, NPS, and real estate so that the risk remains balanced.

At the same time, for the education of children and the safety of his wife, he took a term insurance policy, so that if something unexpected happens, the family remains safe. In his 40s, he completely cleared his debt, and now he has started focusing only on savings and investments.

Today's Dipanshu

Today, Dipanshu is 45 years old. His financial condition is so strong that he is not only able to give a good education to his children, but is also traveling abroad with his wife. He has his own house, sufficient savings, and a retirement fund. Dipanshu believes, "Financial planning is not an option; it is a necessity. If you start in your 20s, life becomes easier."

What is the lesson?

The lesson we learn from Dipanshu's story is to start with small savings in your 20s. Do long term planning for family and children in your 30s and focus on retirement in your 40s. If this 20-30-40 formula is adopted, then there will never be a shortage of money in life and every responsibility can be fulfilled comfortably.

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