2025 was a good year for many on paper – salaries rose, markets did well – yet a lot of Indians still felt broke or financially anxious. The gap came from behaviour, not just income or returns. This blog shows 10 common mistakes and the simple resets you can make in 2026.​

1. Confusing returns with real security

Many people saw their portfolios grow and assumed they were “safe”, even without an emergency fund or proper insurance.​
Reset: First, build resilience: 3–6 months of expenses in an emergency fund and adequate health and term insurance, then chase returns.​

2. Delaying health insurance (again)

“I’m young, my company covers me, I’ll buy later”, kept repeating in 2025, while medical inflation stayed high.​
Reset: Take your own health policy early, with a realistic sum insured, and view employer cover only as a bonus, not your primary safety net.​

3. Treating term insurance as a grudge purchase

Many under-insured themselves or skipped term cover completely, thinking “nothing will happen”.​
Reset: Buy pure term cover for 10–15 times your annual income, separate from investment products, to protect your family’s lifestyle.​

4. Living on EMIs, not on goals

Gadgets, bikes, holidays – small EMIs felt harmless, but together they locked a big chunk of income and reduced savings.​
Reset: Cap all EMIs at a safe percentage of take-home income and take new loans only if they don’t derail core goals like education and retirement.​

5. Stopping SIPs when markets get volatile

When markets corrected, many investors paused or stopped SIPs out of fear, locking in fewer units when they were cheaper.​
Reset: Continue SIPs through ups and downs; review asset allocation annually instead of reacting to headlines.​

6. Over-diversifying without understanding

People collected too many funds, apps and “ideas” – but could not explain why they owned most of them.​
Reset: Consolidate into a small, clear set of investments linked to specific goals and monitored once or twice a year.​

7. Chasing the “next big thing”

From hot sector funds to speculative assets, FOMO drove decisions more than planning.​
Reset: Decide your asset allocation first, then fit products into it; trends should not decide long-term money.​

8. No proper emergency fund

Job loss, health issues and business disruptions forced people to sell long-term investments or borrow at high interest because cash buffers were missing.​
Reset: Park at least 3–6 months of essential expenses in liquid, safe instruments before adding new lifestyle EMIs or big discretionary spends.​

9. Leaving tax planning to March

Last-minute investments for tax-saving led to unsuitable policies and funds bought in a rush.​
Reset: Decide tax-linked investments in the first quarter of the financial year, aligned with goals, not just deductions.​

10. Not tracking expenses at all

Many Indians have no idea where their money goes each month; small leaks add up over a year.​
Reset: Track every rupee for just 30 days using an app or simple sheet; this single habit can transform decisions for 2026.​

Even if you only fix three of these mistakes in 2026, your financial stress will start to drop, and your confidence will rise. For a personalised “2026 reset plan”, consider sitting with a Certified Financial Planner who can map these changes to your actual goals and numbers.​

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