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LoansJagat Team

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4 Min

13 Jun 2025

Financial Planning in Uncertain Times: Strategies for Stability

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Everyone wants stability and consistency in life, but are you willing to be consistent with your finances to get there?

 

Ramesh is a 35-year-old sales manager from Jaipur. He was earning ₹70,000 a month, had a ₹10,000 SIP running, and a ₹1.5 lakh emergency fund. But in just 3 months, his salary was reduced, and a medical emergency arose. His savings dropped to ₹25,000, and his SIPs had to be paused.

 

Here’s a snapshot of his situation:

 

Item

Before the Crisis

After the Crisis

Monthly Income

₹70,000

₹52,000

SIP Contribution

₹10,000

Paused

Emergency Fund

₹1.5 lakh

₹25,000

EMI

₹18,000

₹18,000

Unexpected Expenses

₹0

₹1.1 lakh

 

Ramesh had good habits, but not enough savings. That’s the point, uncertain times don’t wait. If you're not consistent with your finances today, stability tomorrow stays a dream.

 

In this blog, let’s talk about practical ways to build financial stability, even when life is anything but predictable. 

 

1. Build a Liquidity Buffer with Emergency Funds


When my cousin lost his job unexpectedly, his savings were depleted in just 45 days. I wish he knew that emergency funds aren’t a luxury. They are survival tools. Ideally, 6–9 months of expenses should be liquid. It can be kept in a fixed deposit, savings account, or a liquid fund.

Read More - Navigating Market Volatility: Lessons From The Recent 8,000-Point Drop

 

For example, Ramesh is a graphic designer in Delhi. He saved ₹10,000 per month in a liquid fund for 18 months. When he couldn’t find any work for a 3-month, his ₹1.8 lakh fund helped him. 

 

He used it to cover rent, EMIs, and bills without using credit cards or loans. Let’s see how emergency funds help:

 

Item

Monthly Expense (₹)

6-Month Buffer (₹)

9-Month Buffer (₹)

Rent

15,000

90,000

1,35,000

Groceries + Utilities

8,000

48,000

72,000

EMI (Car/Phone)

7,000

42,000

63,000

Insurance + Health Costs

3,000

18,000

27,000

Total Emergency Fund

 

₹1,98,000

₹2,97,000

 

2. Diversify Income Sources

 

During the pandemic, my full-time job faced pay cuts. If it weren’t for my weekend content gigs, I would've been in a mess. Side hustles aren’t optional anymore, they're your space place in uncertain economies.

 

For example, Priya is a schoolteacher. She started a home bakery and earned ₹8,000 per month during the 2020 lockdown. When schools shut down again in 2023, her part-time income helped cover household groceries and broadband bills, saving her from having to borrow money. Here’s how her strategy worked:

 

Source

Avg Monthly Income (₹)

Stability Level

Flexibility

Dependency

Full-time job

40,000

Medium (salary cuts)

Low

High

Freelance writing

12,000

High

High

Medium

Rent out from spare room

6,000

High

Low

Low

YouTube content

4,000

Low

High

Low

Total Monthly Income

₹62,000

-

-

-

 

3. Opt for Insurance Protection Before Investing

 

When my uncle was hospitalised, we realised he had no health insurance and ₹1.2 lakh went from his FD overnight. Before pursuing returns in stocks or gold, ensure you're adequately insured. Medical emergencies can finish years of savings.

 

For example, Ankur is a startup employee. He bought a ₹5 lakh health policy for ₹9,000 per year. In April, an appendix surgery costing ₹86,000 was fully covered. 

 

His investments in mutual funds remained untouched. Imagine what would have happened if there were no insurance. Let’s take the help of the table given below:

 

Expense Category

With Insurance (₹)

Without Insurance (₹)

Hospitalisation Cost

0 (fully covered)

86,000

Monthly Premium

750/month

0

Emergency Fund Used

0

50,000

Investment Impact

None

SIPs paused for 3 months

 

4. Prioritise Low-Risk Investments for Core Wealth

 

I used to invest everything in equity. But watching my portfolio, which decreased by 18% in one week, changed my mindset. Currently, I maintain at least 50% of my investments in fixed deposits, debt mutual funds, or PPF. Stability over thrill, that’s the mantra.

Also Read - The Safest Investment Options During Economic Uncertainty

 

For example, Kavya invested ₹5 lakh: ₹3 lakh in debt funds and ₹2 lakh in equity. During a market crash, her equity dropped by ₹30,000, but her debt fund gained ₹4,500. Her portfolio still held value due to its low-risk diversification. Let’s see her finances with the help of the table given below:

 

Asset Class

Invested (₹)

Gain/Loss (₹)

Risk Level

Liquidity

Equity Mutual Funds

2,00,000

-30,000

High

High

Debt Mutual Funds

2,00,000

+4,500

Low

Medium

Bank FD

1,00,000

+3,000 (interest)

Very Low

Medium

Total Value

₹5,00,000

-₹22,500

-

-

 

Conclusion

 

Uncertain times aren’t rare anymore. They're becoming the new normal. ‘Kabhi bhi. kuch bhi hoye jaa rha hai.’ It can be layoffs, inflation spikes, or family emergencies. So, trust me and build a solid, flexible financial plan that can help you stay stable and optimistic.

 

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About the Author

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LoansJagat Team

We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?

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