Here’s how you can plan your personal finances and protect your money #IndiaFinance

Build and prioritise emergency funds

“In times of geopolitical uncertainty, like the India-Pakistan conflict, financial resilience becomes paramount,” says Yogita Dand, Certified Financial Planner. “The first step is to strengthen your emergency fund—ideally covering 6–12 months of essential expenses—to cushion against unexpected disruptions in income or market volatility.” A robust emergency corpus ensures you’re not forced to dip into long-term investments or borrow at high costs during a crisis.

Avoid panic, stay the course

Market turbulence is a common fallout of war-related news. But panicking can do more harm than good. “Investors should avoid knee-jerk reactions,” Dand adds. “Equity markets may experience short-term turbulence, but historical data shows that they tend to recover over time.” She advises maintaining a diversified portfolio and rebalancing only if asset allocation shifts considerably. Amit Suri, founder of Aum Wealth, echoes this view: “In times of geopolitical tension like the India-Pak conflict, stay calm and stick to your financial plan. Don’t let short-term noise derail long-term goals.”

Insurance and protection for the family

With heightened risk, particularly in border areas, it’s crucial to review protection mechanisms. “It’s prudent to review insurance coverage—both health and life—to ensure your family is protected amid increased regional risks,” Dand notes. Adhil Shetty, CEO of Bankbazaar.com, said, “Ensure you have adequate health and life coverage and check if your policies cover riots, terrorism, acts of war, etc. Most policies don’t, but some may. A careful reading of your exclusions is important.” Lokesh Nathany, Financial Coach and Motivational Speaker, adds: “People living in the border states should check their financial protection coverage, commonly known as term insurance. I would also advise ensuring your family knows all about your investments and protection plans.”

Continue SIPs and stay invested

One common mistake during conflicts is halting Systematic Investment Plans (SIPs) in mutual funds. “Avoid timing the market; instead, focus on systematic investing like SIPs, which can help average out volatility,” Dand advises. Nathany agrees: “Nothing changes for the investors who have planned their finances and are aligned with their goals. If at all markets correct, it would be time to increase the allocation.”

Rework budgets and debt strategy

Tensions can lead to inflation, especially due to rising oil prices, impacting everyday budgets. Dand recommends, “Monitor your monthly budget and limit discretionary spending, while keeping an eye on debt obligations. In such times, financial discipline is your strongest defence.”

While geopolitical events like an India-Pakistan conflict bring uncertainty, sound financial planning remains your strongest ally. By focusing on fundamentals—emergency funds, insurance, disciplined investing, and budgeting—you can navigate the storm without losing sight of your long-term objectives.

Create an all-weather portfolio that performs in all conditions. “In times of geopolitical uncertainty, gold does well and stock markets get choppy,” Shetty adds. As Suri puts it, “Maintain a solid emergency fund, avoid panic-selling, and ensure your investments are well-diversified.” Stay calm, stay invested, and most importantly—stay prepared.