Tensions at the India-Pakistan border don’t just affect diplomacy—they hit home too. Each time there’s a flare-up, Indian families everywhere feel a quiet sense of unease. Even if the stock market doesn’t crash and the economy holds steady, that emotional unrest can still impact the way we think about money.
After all, when headlines are full of uncertainty, it’s only natural to wonder: Is my money safe? What happens if things get worse? Am I financially prepared for unexpected disruptions?
We decided to speak with some of the most trusted financial planners in India, especially those who’ve helped clients navigate everything from market meltdowns to global pandemics. Their advice? Don’t panic—but do prepare.
Here’s a detailed, easy-to-follow guide on how to keep your personal finances in order during uncertain geopolitical situations like border tensions.
1. Build a Rock-Solid Emergency Fund
Let’s start with the most basic—and most important—step: your emergency fund.
If there’s one thing every financial expert will stress, it’s this: Bina emergency fund ke kuch bhi secure nahi hai. Life throws curveballs without warning, and border tensions are just one example. Whether it’s a job loss, medical emergency, or sudden travel disruption, your emergency fund is your safety net.
How much should you save?
Aim for at least 3 to 6 months’ worth of essential expenses—this includes rent, groceries, utility bills, school fees, EMIs, etc. It should be money that you can access quickly and easily, without needing to break a fixed deposit or sell investments in a panic.
Where should you keep it?
Stick to simple, no-risk places:
- A regular savings account in a nationalised bank like SBI or a reputed private bank like HDFC.
- A fixed deposit for slightly higher interest, but keep it with auto-sweep or premature withdrawal options.
- Digital wallets like PhonePe or Paytm for a small buffer—helpful if there are ATM outages or urgent online payments.
Your goal is to stay liquid and calm when everyone else is scrambling.
2. Review Your Insurance and Cut Down High-Interest Loans
The next step is risk-proofing your life. Start by revisiting your insurance policies.
When was the last time you checked your health or life insurance coverage? Is it up-to-date? Does it reflect your current lifestyle and family responsibilities?
Many Indian households still depend on LIC or other traditional policies. That’s fine—but the sum assured needs to match today’s healthcare and living costs. Hospital bills have skyrocketed post-COVID, and what was enough five years ago may be peanuts now.
What should you do?
- Review all your policies—check coverage, sum assured, nominee details, and policy status.
- If you don’t have term insurance, consider getting one. It’s cost-effective and gives your family a financial cushion.
- Don’t forget accident insurance—especially if you travel often or have dependents.
Now, let’s talk about something many ignore: high-interest debt.
Credit cards, personal loans, or EMIs from BNPL apps can quickly become a headache during uncertain times. If your income is interrupted or delayed, paying these off can become stressful.
Pro tip: Reach out to your bank and ask about restructuring options or balance transfers. Banks today are far more open to negotiations than most people realise.
Reducing unnecessary liabilities is key to keeping your finances stable.
3. Don’t Let the Stock Market Make You Nervous
Border tensions often shake investor confidence. News of conflict—whether real or just brewing—can send markets into a tailspin. But if you have investments in mutual funds, shares, or SIPs, don’t act in panic.
This is exactly when smart investors stay calm and let volatility play out.
Here’s what financial planners in Mumbai suggest:
- Stick to your SIPs. They’re built to work in all kinds of markets, and stopping them during a dip only ruins your long-term growth.
- Avoid making emotional decisions. Selling when the market is low is the biggest mistake retail investors make.
- Consider diversifying into gold—not because it’s trendy, but because it’s been a trusted hedge in Indian households for centuries.
Whether it’s sovereign gold bonds (SGBs), gold ETFs, or even those family bangles and coins tucked away in your locker, gold continues to offer security during chaos.
In fact, financial planning for NRIs often includes gold exposure for precisely this reason—it’s stable, culturally trusted, and relatively liquid.
4. Safeguard Your Important Financial Documents
If the situation ever escalates, you’ll thank yourself for keeping your documents in order.
Store all key financial paperwork in a secure, accessible place. The Government of India’s DigiLocker is perfect for this—safe, legal, and easy to use.
What to keep ready:
- Aadhaar Card
- PAN Card
- Bank account details and IFSC
- Property ownership records
- Insurance policy documents
- Investment details (mutual fund folios, demat account info)
- Loan and EMI documents
If you’re traveling or need to act fast, having these handy can save you from massive delays and confusion.
Pro tip: Share access to DigiLocker or your key documents with your spouse or a trusted family member. Emergencies don’t wait for passwords.
5. Stay Calm, Stay Aware
Uncertainty is a part of life—but panic isn’t. The more prepared you are, the more in control you’ll feel, even if the world around you feels unstable.
Take a deep breath, follow the steps above, and know that you’ve done your bit to protect your family’s financial future.
If you’re still unsure where to begin—or you want to double-check your current plan—talk to a professional. There are countless financial planners in Mumbai and across India who can guide you with customised strategies based on your income, lifestyle, and goals.
Even for NRIs, getting expert advice can go a long way. Financial planning for NRIs often involves extra factors like foreign income, taxation, and repatriation rules. A good planner helps you navigate all that with ease.
Final Thoughts
Let’s face it—geopolitical tensions aren’t going away any time soon. But while we can’t control what happens at the border, we can control how prepared we are.
With a solid emergency fund, clear insurance coverage, manageable debt, and a diversified investment plan, you’re setting up a strong defence—not just for your money, but for your peace of mind.
And in times like these, that’s priceless.
So go ahead—take stock of your finances this week. Talk to an expert if needed. Make those small but meaningful changes.
As we say in India, “Savdhaani hati, durghatna ghati.” A little care today can save you from a lot of stress tomorrow.
