Written by : Knowledge Centre Team
2025-10-02
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14 minutes read
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A good financial plan doesn’t just protect your future. It gives you the freedom to live your life with confidence today. In India, more people than ever are becoming aware of how small, smart saving and investing habits can help them enjoy a comfortable life well into retirement. For example, setting up a simple monthly investment early on can grow into a strong safety net for your family’s needs, your children’s education, or even your dream retirement.
If you’re just starting your career or looking to manage your money better, these ten practical tips will help you build a secure financial foundation, step by step.
Key Takeaways
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Why a Financial Plan is Important?
A financial plan acts like a roadmap for your money. It helps you set clear goals, make better decisions, and stay prepared for life’s surprises. Be it planning for your child’s education, buying a new home, or building a retirement fund, having a plan gives you a sense of direction and control.
For example, someone who starts saving and investing in their 20s can build a much larger corpus with small, regular contributions than someone who starts in their 40s. The earlier you plan, the more your money can grow, and the more confident you’ll feel about the future.
10 Simple Tips to Take Control of Your Money
Taking charge of your finances doesn’t have to be complicated. It just takes a few smart steps in the right direction. Here are ten simple yet effective tips to help you save better, invest wisely, and build a secure future.
- Invest money based on well-defined financial goals- Once you’ve decided to start investing, the first step is set is to set clear goals. Instead of opting for a scheme and investing money directly, set down your financial goals. Your financial goals should be of two types - short-term and long-term.
Defining your financial goals in a clear and precise manner will help you understand when and how much money you need. This can help you make an accurate investment plan for the future. - Don’t overlook the allocation of your assets - Asset allocation is one of the basic requirements when you start investing. Assets can be allocated to various types: Debt, Equity, Gold, Commodities, Property, and Liquid (i.e. Cash). Each of these has separate rates of return, advantages, disadvantages and liquidity.
Therefore, how much you allocate to each asset depends entirely on your risk appetite. Understand your risk appetite and allocate your assets accordingly. It is also important to revisit asset allocation regularly instead of making one hard-and-fast rule. - Diversify your investments based on your appetite - “Don’t put all your eggs in one basket,” is a common phrase in the financial world. However, this does not mean you have to buy ten different financial products. Instead, diversify your investments based only on your appetite.
If you buy too many different funds in the first week of your investment, you may find it difficult to manage all of them. Instead, start with one or two and as your understanding of your financial requirements and financial products increases, you can diversify your investments.
- Study Financial Products in Detail Before Making a Decision- The decision to buy or sell an investment is entirely up to you. However, you should do complete and detailed research before you make the decision. Use multiple avenues of knowledge to understand the advantages and disadvantages of your decision.
Buy or sell investments only when you can define why you are doing so. While taking advice is important, ultimately, the investment will affect your future. Therefore, you should be able to state clearly why you have taken a particular financial decision.
- Review your investment portfolio regularly- Whether you have only one scheme in your portfolio or ten, you should review your investment portfolio regularly. It is recommended that you review your portfolio at least once a year or once every six months. Doing so will ensure you can identify any scheme that is not performing to your expectations. It can also help you book profit or avoid any losses. This can also help you rebalance your portfolio and manage risk and asset allocation. However, we do recommend not reviewing the portfolio every few weeks or months. This can lead to irrational decisions.
- Don’t choose investments based on a rate of return- Rate of Return (ROR) is one of the most attractive numbers in any scheme, portfolio or bank account. However, your decision to invest in any product should not be based on this number. Instead, opt to do thorough background research on the financial institution. This will help you understand the institution’s track record and whether or not your decision is wise.
- Don’t postpone taking action- If you have decided to make a financial decision - be it to make an investment or sell it - don’t postpone taking action. Postponing the action will only hurt you in the long run. For example, if you’ve decided to buy a mutual fund because it has affordable rates, don’t postpone. If you postpone the decision, the value of the fund may change, and you may have to invest extra money. Similarly, postponing can lead to both profit and loss.
- Plan for Your Retirement- Retirement is the inevitable goal for all people. Therefore, it is never too late to start planning for your retirement. When you calculate your retirement corpus, make sure to keep inflation in mind. If you don’t have any government pension, you can also opt for Guaranteed Income Schemes.
- Buy Health and Life Insurance Policies- Health and life insurance policies are two different but equally important products. A health insurance policy can help you cover the medical expenses of all emergencies. Generally, health insurance policies provide for hospitalization, medicines, surgeries, etc.
Life insurance policies are the second requirement. These can help you provide for your dependents in case of an untimely death. iSelect Smart360 Term Plan by Canara HSBC Life Insurance also includes the provision to add your spouse. - Combine Insurance with Savings if Needed- If you can’t afford a life insurance policy due to financial constraints, you can also opt for a insurance-cum-savings policy. The savings component in these policies can help you grow money while providing you with insurance cover. By choosing this option, you can build a small financial cushion while staying protected, making it a practical choice for those managing tight budgets. Many of these plans also offer flexible features you can customise according to your needs and goals.
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Conclusion
These 10 simple tips can help you invest and save your money wisely. Keeping then in mind will help you make confident, well-informed decisions for your finances. Remember, it’s never too late to start building a secure financial plan for yourself and your loved ones. Every small step you take now, be it setting clear goals, reviewing your portfolio, or combining insurance with savings, moves you closer to financial freedom.
So don’t wait for the “perfect time”. Start today, stay consistent, and watch your money grow into a brighter, more secure future.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
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