Building a Financial Plan for Your Family

A family financial plan does not need to be complicated. It needs the right building blocks, in the right order.

1. Protection first

• Life cover for each earning member, typically 10 to 15 times income plus loans.
• Health cover for everyone, through a family floater or separate policies.

2. An emergency fund

Keep three to six months of expenses somewhere safe and easy to access, so a job loss or emergency does not force you to break long-term investments.

3. List your goals

Write down each goal with a cost and a date: a home, children's education and marriage, retirement, travel. Our article on education planning shows how to put a number on one.

4. Invest for each goal

Match each goal with an investment that suits its time frame: safer options for short-term goals, growth-oriented options such as SIPs for long-term ones.

5. Protect what you have built

Keep nominations up to date on every policy and investment, and make a will with a lawyer so your family is not left with paperwork and disputes. See estate planning.

Review every year

Check your plan each year and after big events such as marriage, a new child or a change of job.

Not sure where to start? A free financial checkup is a good first step.