Personal finance fortification checklist

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Download all six categories, details, priorities and your current status as an Excel workbook.

These are general planning guidelines, not personal financial advice. Adjust amounts and insurance cover to your circumstances.

1. Emergency fund

Keep 6 to 12 months of household expensesBuild an easily accessible reserve covering rent, EMIs, groceries and school fees. Allocate the fund for liquidityKeep some in a savings account and the rest in a sweep-in fixed deposit or liquid funds, rather than shares or locked-in investments. Use a separate emergency accountKeep the fund in a bank account not used for everyday UPI payments or shopping. Keep emergency cashSafely keep ₹25,000 to ₹50,000 in cash for disasters or network outages.

2. Health insurance

Have your own family health insuranceConsider ₹10 lakh to ₹15 lakh of family cover in addition to an employer's group policy. Consider a super top-upA super top-up with a ₹10 lakh deductible can provide ₹50 lakh to ₹1 crore of additional cover at a lower premium. Check room-rent limitsCheck that the policy does not impose room-rent caps or sub-limits. Consider separate cover for parentsConsider a separate health policy for older parents rather than including them in the family policy.

3. Life and term insurance

Consider term cover of 15 to 20 times annual incomeConsider adequate pure term insurance rather than an endowment or ULIP policy. Consider the Married Women's Property ActConsider whether section 6 of the Married Women's Property Act, 1874 applies to your policy and circumstances; seek professional advice about its protections. Disclose health information fullyDisclose your health, habits and family medical history accurately when applying. Consider an accidental disability riderConsider cover for loss of income following an accident-related disability.

4. Debt management

Eliminate high-interest debtPrioritise credit-card balances, personal loans and buy-now-pay-later debt. Keep EMIs within your incomeAim to keep total monthly EMIs below 40% of take-home pay. Consider home-loan prepaymentConsider paying an additional 5% of principal each year; the reduction in tenure depends on your loan terms. Maintain a healthy credit scorePay loan instalments and credit-card bills on time and aim to maintain a score above 750.

5. Long-term wealth building

Invest regularly through a monthly SIPConsider investing 20% to 30% of income in mutual fund SIPs when affordable. Step up SIP contributionsConsider increasing SIP contributions by 10% annually as income rises. Review EPF and PPFMake use of eligible EPF and PPF contributions and their applicable tax benefits. Consider a 5% to 10% gold allocationConsider gold ETFs or sovereign gold bonds rather than jewellery, keeping their risks and availability in mind. Rebalance annuallyReview equity and debt allocations once a year and rebalance toward your target.

6. Estate planning and document security

Update nomineesVerify nominees on bank, demat, mutual fund, EPF, PPF and insurance accounts. Prepare a willDocument how you want your assets and investments distributed. Prepare a family financial guideShare bank account, insurance policy, locker and financial adviser contact details with your spouse or family for emergencies. Protect digital documentsSafeguard PAN, Aadhaar, property documents and policies, including through DigiLocker where appropriate.