A s the new financial year kicks off, many of us find ourselves in a familiar situation. The frantic rush to save taxes has just ended, and once again, we scrambled in the final days to make hasty investments. Every year, we vow to plan better — yet, year after year, we fall into the same trap.
This year can be different
The issue isn’t about lacking the intention to plan. It’s about getting caught in poor financial habits, driven by urgency and emotion. In our rush to meet deadlines, we end up making hurried decisions — whether it’s locking funds into ELSS at market highs or settling for fixed-return products that barely outpace inflation. These choices are often reactive, not thoughtful.
It’s time to hit pause and rethink our approach
The recent passing of Nobel laureate Daniel Kahneman serves as a timely reminder. In Thinking, Fast and Slow, Kahneman explains how our brains use two systems — one that’s fast and emotional, and another that’s slow and rational. While quick thinking helps in emergencies, your financial decisions deserve careful, deliberate thought. Especially in today’s uncertain economic environment, reason must take priority over impulse.
Let’s bring this wisdom into our financial planning
India’s evolving tax system, especially with the rise of the new tax regime, signals a shift towards simplification. The government has made it clear: taxes are here to stay. With only around 8 crore people filing tax returns — just 5–6% of the population — we must move beyond short-term fixes. Sustainable wealth creation requires smart use of financial tools, not last-minute panic.
Under the new tax regime, many of the deductions you previously counted on may no longer apply. But that doesn’t mean your financial planning ends. It simply needs to evolve. Your focus should now shift from tax-saving to building long-term wealth.
Instruments like ELSS, NPS, and other market-linked investments remain valuable. They not only offer potential tax benefits under the old system but, more importantly, they have a strong track record of delivering inflation-beating returns over the long term. Historically, equities held for a decade or more have outperformed most other asset classes. So, if you’re serious about growing your wealth, ditch the lump-sum, last-minute investments. Embrace a disciplined, systematic approach — ideally starting at the beginning of the year, not the end.
This is where a adviser can be a game-changer
Often overlooked, a good adviser can help you navigate the maze of financial decisions and design a plan aligned with your life goals — whether it’s your child’s education, buying a home, or preparing for retirement. A modest advisory fee today could save you from costly errors in the future. Plus, with their guidance, you can set up automated investments that remove emotion from the equation and keep you on track, regardless of market swings.
However, remember: while your adviser provides guidance, you’re the one steering the ship.
To truly benefit, you also need to invest in your own financial education. Stay informed about economic shifts, policy updates, and market trends. Read regularly. Attend financial literacy workshops. The more you learn, the better your conversations with your adviser will be — and the more empowered you’ll feel in making informed choices.
Lastly, don’t do it alone
Make personal finance a family affair. Share your goals openly with your spouse and children. Involve them in key financial decisions. When your family understands your financial vision, they can help keep you accountable and support your journey. Remember, wealth-building works best when it’s a team effort — and your family is your most valuable team.
As we embrace FY25, let this be your moment of change. Leave behind the chaos of last-minute scrambles. Shift towards a thoughtful, strategic approach. Start early, invest consistently, continue learning, and build a strong support system around you.
Your financial transformation doesn’t need to wait until next year’s deadlines. It can start right now — with one smart, intentional step.
(The writer, as Founder and Chief Financial Coach of PlantRich & Vama PlantRich, has coached 5,000-plus corporate professionals in rewriting their money stories)
