5 Essential Tips for Healthier Financial Planning in 2026

Building a Strong Financial Foundation

As we begin 2026, creating a comprehensive financial plan is more important than ever. Yan Ardhianto Handoyo, Faculty Head of Sequis Quality Empowerment at Sequis Life, emphasizes that financial planning should be a key New Year's resolution. The process begins with understanding your current financial position through thorough tracking of income and expenses, including small but regular expenditures that can significantly impact overall financial health.

Key Steps in Financial Planning

1. Comprehensive Financial Assessment: Identify all assets and liabilities to determine current financial standing
2. Specific Goal Setting: Establish clear financial objectives with defined strategies
3. Budget Creation: Implement consistent budgeting to control spending
4. Strategic Allocation: Use the 50/30/20 rule as a guideline for needs, wants, and savings/investments
5. Risk Management: Incorporate insurance for financial protection

Smart Investment Strategies

Financial growth requires more than just saving; it demands strategic investment. Yan suggests developing assets through appropriate investment instruments based on financial goals and risk profiles. For short-term goals, instruments like deposits or government bonds are recommended, while long-term objectives might benefit from more aggressive investments like stock mutual funds or direct stock investments.

Maintaining Financial Health

Consistency is key in financial planning. Regular monitoring and adjustments ensure that financial goals remain on track. Avoiding consumer debt and focusing on productive investments like mortgages or business loans (with repayments not exceeding 30% of income) is crucial. Most importantly, allocating at least 10% of income towards financial protection through insurance creates a safety net against unexpected events.