What does your financial diet look like?

Your Money Needs a Diet Too—Here’s Why Most People Get It Wrong

Imagine your finances as a well-planned diet. Just like you balance proteins, carbs, vitamins, and fats to stay fit, you need a mix of savings, investments, and insurance to build a strong financial future. Too much junk food in your diet—like excessive spending—can lead to financial obesity (debt). On the other hand, skipping essential nutrients—like life insurance—can leave you financially malnourished when you need protection the most. 

What exactly is a financial diet

Let’s make it simple. Your financial diet is the mix of things that feed your money life. Some stuff helps you grow wealth. Some keep you safe. Some give you peace of mind. The idea is that all these should work together to keep your finances in good shape. It shouldn't matter whether times are smooth, challenging, or unexpected.

Just like the food, the right blend can be different from person to person. After all, our taste profiles are different. So, someone might love spicy food; others can’t handle it. Likewise, some people lean into high-risk investments as if it's second nature. Others? They prefer safe, steady options as they love sticking to the lowest-risk investments. There’s no one-size-fits-all approach when it comes to a financial diet. That's also why there is no one-size-fits-all diet.

So, the big question is—what’s on your plate?

Key ingredients for a balanced financial diet

Let’s break down a balanced financial diet to help you figure out your balanced financial diet. Here’s a look at the core elements that comprise a well-rounded financial mix. 

          1. Fixed deposits – The Everyday Staples

Think of FDs as your rice or roti, or as they say, daal-chawal components. Basic, reliable, always there. Fixed deposits offer you security as they’re your safe spot for emergencies or short-term needs. There are many investment options similar to fixed deposits. It is up to you to decide one among these, but a fixed deposit kind of investment should be part of your financial diet. 

2. Life insurance – The Protective Shield

Like vitamins that guard you from falling sick, Life insurance shields your family from financial shocks. It’s the kind of thing you hope you’ll never need. But if life takes a turn, you will be glad it is there. Term insurance is one such life insurance plan that provides a life cover to your family to shield them after you. It is often recommended to have a life insurance coverage of up to 10-15 times your annual income. A cover of this amount can provide financial stability to your family if you are no longer around. 

           3. ULIPs – The Superfood Combo

Some meals do it all—protein, vitamins, fibre, good fats, and more. Unit linked insurance plans (ULIPs) are like that. These plans provide you life cover and market linked returns. So, they help you grow your money and provide you with protection. These plans provide a comprehensive package as they are flexible, efficient, and tailored to your protection and investment goals. 

4. Savings plans – Your Daily Energy Boost

You don’t skip meals, right? Savings plans help you build a habit to save money regularly. These are life insurance plans providing guaranteed returns to you after maturity. Regular, steady contributions that grow over time with your family protected throughout the policy term. It’s like fuelling your day with nutritious food.

5. Real estate – The Hearty Meal

Real estate is like a slow-cooked meal. It takes time, effort, and planning—but when done correctly, it is satisfying. Long-term value, tangible asset, and potential income source. Not for everyone, but many find comfort in owning property.

6. Retirement Plans – The Long Simmer

Imagine a pot of stew simmering away for hours—slow, patient, and ultimately rewarding. That’s retirement planning. You invest over time, so one day you can sit back, relax, and enjoy your golden years with the comfort of income.

Balance matters: Don’t overload your plate

Have you ever tried eating only one type of food every day? Doesn’t end well. It's the same with money. If all your funds are tied up in one asset—say, just property or just equity—you’re exposed to risk.

That’s why a diversified financial diet is key. Mix it up. Include a bit of everything, i.e. growth assets, protection, liquidity. This balance helps you ride out tough times and make the most of good ones.

As you grow, so should your financial diet

Here’s the thing: what worked for you at 25 won’t work at 50. Just like your body’s needs change, so do your money needs.

When you’re younger, you might chase growth—ULIPs, equity, and bold moves. Mid-life? It’s about stability. You start thinking about protection, such as buying a life insurance, property and preparing for future expenses. Near retirement? You want safety and income—retirement plans, annuities, and steady options.

That’s why reviewing your financial diet regularly is important. Every few years, take a look. Adjust. Rebalance. It’s your future—you want it to taste good.

Your financial wellness, your way

Money isn’t just numbers on a screen. It’s your home, your holidays, your peace of mind. The right financial diet gives you all that and more. Some days it’ll be light, some days heavy, but the goal is always the same: to feel secure, free, and in control.

So, what’s on your financial plate today?