How to plan finance
In the fast-paced economy of 2026, financial planning has shifted from simple “saving” to complex wealth engineering. With shifting tax regimes, the mainstreaming of alternative investments, and the integration of AI in money management, the old methods are no longer enough.
1. The Foundation: Assessing Your "2026 Reality."
Financial planning starts with a snapshot of your current situation. Before you can reach a destination, you must know where you are starting.
- Cash Flow Audit: Track every rupee. In 2026, the 50/30/20 Rule remains a gold standard:
- 50% for Needs: Rent, groceries, and essential utilities.
- 30% for Wants: Dining at Park Street, travel, and lifestyle.
- 20% for Savings/Debt: SIPs, insurance, and loan repayments.
- Net Worth Statement: List your assets (savings, gold, property, MF) and subtract your liabilities (home loans, credit card debt).
2. Setting SMART Financial Goals
Investing without a goal is like taking a taxi without telling the driver where to go. You’ll spend money but won’t arrive anywhere.
Categories of Goals:
Goal Type | Duration | Examples | Recommended Assets |
Short-Term | < 3 Years | Emergency fund, vacation, car downpayment | Liquid funds, FDs, and Arbitrage funds |
Medium-Term | 3–7 Years | Wedding expenses, higher education | Balanced Advantage funds, Index funds |
Long-Term | 7+ Years | Retirement, child’s career, heritage home | Equity Mutual Funds, Small-cap/Mid-cap |
3. The 2026 Protection Layer (Non-Negotiables)
A single medical emergency or an untimely event can derail years of planning.
- Emergency Fund 2.0: In a volatile 2026 job market, we recommend keeping 6 to 12 months of expenses in a liquid savings account.
- Term Insurance: A cover of at least 15x your annual income.
- Health Insurance: Given rising medical inflation in 2026, a base plan of ₹10L with a “Super Top-up” is essential for access to top hospitals like Apollo or AMRI.
4. Modern Asset Allocation
In 2026, beating inflation requires more than just Fixed Deposits.
- Equity Core: 70–80% of long-term wealth should be in Flexi-cap and Large & Mid-cap funds to capture India’s growth.
- Alternative Satellite: Explore fractional real estate or private credit (crowdfunding) for 5-10% of your portfolio to diversify beyond the stock market.
- Tax Efficiency: With the updated 2026 tax codes, choosing between the Old and New Tax Regimes requires a custom calculation based on your deductions (80C, 80D, and NPS).
Why Welfin is the Best Financial Advisor
While AI apps can track your spending, they cannot understand your family’s specific aspirations or the nuances of the local market.
- Hyper-Customization: We don’t believe in “one-size-fits-all” portfolios. Your plan is as unique as your thumbprint.
- Objective Advice: As independent advisors, our loyalty is to your goals, not to commissions from any specific insurance or mutual fund company.
- Behavioral Coaching: We help you stay disciplined during market corrections, preventing emotional “panic-selling” that destroys wealth.
Ready to take control of your financial journey?
Financial freedom doesn’t happen by chance; it happens by choice. Whether you are a young professional in Salt Lake or a business owner in Burrabazar, Welfin is here to guide you.
WELFIN INSIGHT
“The right insurance amount is not the cheapest or the highest it’s the one that fits your life.”
