For most Indians, financial success is not about becoming a millionaire overnight. It is about having enough money to achieve life’s important goals without constantly worrying about finances. As education costs, healthcare expenses and living costs continue to rise, it is becoming increasingly important to build savings and investments at every stage of life. While everyone’s journey is different, there are some broad financial milestones that can help middle-class and upper-middle-class families stay on track.
In an interview with HT Lifestyle, Kanika Bali, founder of The Tax Planet, shares the savings targets to aim for by 30, 40 and 50.
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Age 30 years: Building a strong start
Key goals: Marriage, buying a home, and creating an emergency fund.
Suggested savings and investments: 1.5 to 2.5 times your annual income (approximately ₹22 lakh to ₹35 lakh).
Kanika recommends that by the age of 30, many people are settling into their careers and planning major life events such as marriage or buying their first home. This is also the time to build financial security. Having savings and investments equal to at least one year’s income can help fund a house down payment, cover wedding expenses, and provide a cushion during unexpected situations such as job loss or medical emergencies. “A health insurance policy and an emergency fund covering six months of expenses should be considered essential,” Kanika added.
Age 40: Managing growing responsibilities
Key goals: Children’s education, home loan repayments, and supporting ageing parents.
Suggested savings and investments: 3 to 5 times your annual income (approximately ₹60 lakh to ₹1.5 crore).
According to Kanika, the 40s are often the busiest financial years for a family. School fees increase, home loan EMIs continue, and many people begin contributing towards the healthcare and well-being of their parents. At the same time, professionals may need to learn new skills or adapt to changing workplace demands. Having a larger investment base provides flexibility and protects the family from unexpected financial shocks. By this age, families should ideally have a dedicated fund for their children’s higher education and be investing regularly for retirement.
Age 50: Preparing for financial freedom
Key goals: Children’s higher education, marriage expenses, parental healthcare, travel, and retirement.
Suggested savings and investments: 6 to 10 times your annual income (approximately ₹2 crore to ₹5 crore or more).
“By 50, financial responsibilities often reach their peak. University education, weddings, and rising healthcare costs can place significant demands on family finances,” said Kanika. This is also the stage when many people want to fulfil personal dreams such as travel, pursuing hobbies, or spending more time with family.
A strong investment portfolio can help meet these goals without compromising retirement plans. Ideally, major loans should be substantially reduced or fully repaid by this stage.
Note to readers: This article is for informational purposes only and not a substitute for professional advice.
