Master your money: 10 essential financial moves for wealth, protection, and retirement. Build funds, increase SIPs, secure insurance, and plan for the…
1/11Managing money isn’t just about earning more, it’s about making the right financial decisions at the right time. Whether you’re building wealth, protecting your family or planning for retirement, a few practical steps can put your finances on a stronger footing. Here are 10 money moves worth making.
2/11Build an emergency fund first | Before increasing exposure to equities or other market-linked investments, create an emergency corpus covering six to 12 months of household expenses, EMIs and insurance premiums. Keep the money in a liquid mutual fund or an interest-bearing savings account so it remains easily accessible during unexpected situations.
3/11Increase your SIPs every year | Regular SIPs in equity mutual funds remain one of the most effective ways to build long-term wealth. If possible, increase your SIP amount by around 10% annually. Index funds and diversified flexi-cap funds can help create inflation-beating returns over the long run.
4/11Don’t depend only on employer health insurance | Corporate health insurance may not provide adequate protection if you switch jobs or retire. Consider buying an individual or family floater policy with coverage of ₹15-20 lakh, along with a super top-up plan. Buying early also helps secure lower premiums and shorter waiting periods.
5/11Buy adequate term insurance | If your family depends on your income, a pure term insurance policy is essential. Financial planners generally recommend life cover worth 10-15 times your annual income to provide financial security to your dependants.
6/11Pay off costly debt | High-interest debt, such as credit card dues and personal loans, can significantly affect long-term wealth creation. Prioritise repaying expensive loans and make regular prepayments on your home loan whenever possible to reduce the total interest burden.
7/11Add global exposure to your portfolio | Diversifying across geographies can reduce portfolio concentration risk. Consider allocating around 5-10% of your investments to international equity funds or global feeder funds for exposure to overseas markets.
8/11Invest separately for your child’s education | Education costs continue to rise faster than inflation. Build a dedicated investment portfolio for this goal using a mix of equity mutual funds, debt investments and, where applicable, Sukanya Samriddhi Yojana for a girl child.
9/11Strengthen your retirement corpus | Don’t postpone retirement planning. Contribute regularly to long-term retirement instruments such as the Public Provident Fund (PPF) and the National Pension System (NPS). These can help build a retirement corpus while also offering tax benefits where applicable.
10/11Review your portfolio once a year | Market movements can change your original asset allocation over time. Review your investments annually and rebalance across equity, debt and gold to keep your portfolio aligned with your financial goals and risk appetite.
11/11Update nominees and prepare a will | Ensure nomination details are updated across your bank accounts, mutual funds, demat accounts and insurance policies. A legally valid will can also help ensure your assets are transferred smoothly to your intended beneficiaries and minimise future disputes.
