Five Crucial Money Rules You Must Follow In FY26

Managing your money well is one of the most important steps for a financially secure future. Successfully financial planning is a matter of discipline and long term commitment. With proper financial planning, you can take care of the important needs in life, be it the cost of medical care or sending children to the best schools and colleges.

There are several rules you can follow to ensure that your finances remain secure while giving high returns. Below, we have listed some of the rules that can guide you along your path of financial success and freedom as the new financial year (FY 2025-26) is beginning from Apr. 1.

What are the things you spend on and how much do you spend on them? This question must be at the top of your mind when you prepare your budget. You can create an Excel sheet to keep track of your monthly spending and identify how much percentage of your monthly income goes to paying for different things. 

You can divide your money into essentials and discretionary spending every month, while setting aside some amount for savings. Essentials would include rent, food, and electricity, among others, for which you spend some amount every month. These expenses may vary, but you can’t avoid them. The discretionary spending can cover entertainment, buying gadgets, etc. Your budget must reflect your priorities and needs and allocate money to different categories accordingly. You can even take the help of any of the budgeting apps to track your expenses better.

In life, it is important to be prepared for the worst-case scenarios. The same is true in the case of your finances. Financial setbacks can include losing your job and high medical expenses. It is wise to build an emergency corpus that gives you a runway of at least six to twelve months. An emergency fund will give you peace of mind. Even if you face an emergency, you will have enough funds to deal with it. It will also ensure that you are not forced to avail a loan.

It is important to explore the different types of instruments you can invest in. If you are just starting your investment journey, you can invest in safer instruments such as fixed deposits. As you learn more about other investment options, you can also venture into the stock market and mutual funds. It can help you beat inflation and generate returns in the long run. Please note that investments in stock markets are subject to market risks. So, it is important to do a thorough analysis before investing in such options.

Insurance provides you coverage against risks such as high medical costs or damage to your vehicle. There are different types of insurance products, such as life insurance, health insurance, car insurance, and travel insurance. Each of them is suited to a different purpose and provides varying degrees of coverage. You need to evaluate your priorities and the extent of coverage provided by different plans to decide which is the best one for you.

It is easy to get carried away as your income increases. Be careful when you increase your spending with a rise in your income. While it may be fair to think of upgrading your lifestyle, it is important to have a balanced perspective on what the necessities and desires of your life are. If you get into the habit of overspending, it can dent your savings and deprive you of money that you could have saved for the future.