Personal Finance Basics in One Page

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If you are starting from zero, follow this sequence. Skipping steps (for example investing before an emergency fund) creates unnecessary risk.

  1. Track and budget. Know where money goes. Aim for a simple 50/30/20 or any system you will actually follow.
  2. Build a starter emergency fund (₹25k–50k) then grow it to 3–6 months of essentials.
  3. Clear high-interest debt (credit cards, personal loans above ~12–14%).
  4. Get basic protection: term life (if anyone depends on your income) and health insurance.
  5. Start investing via equity mutual fund SIPs for long-term goals and safer instruments for short-term needs.
  6. Use tax-advantaged options where they fit your goals (PPF, ELSS, NPS, etc.) without letting tax tails wag the investment dog.
  7. Review once or twice a year. Adjust contributions as income rises; rebalance if needed.

Deep dives: Emergency Fund · SIP vs Lumpsum · Calculators