Simple Financial Plan 

1) Emergency fund 6 to 12 months of your regular expenses
2) Term Insurance: To take care of family in our absence --cover should be at least 10-12 times of your annual income.
3) Health insurance: Buy a pure health cover for your family. medical emergency can derail your financial plan.
4) Plan for Retirement: Start early investments (EPF/VPF/PPF , NPS & Equity MF)
5) Others Plans -- Children's education and marriage & House Purchase, Car Purchase

--   Learn more 21 Rules and 50 Decisions for managing finances better 

What to keep in mind?

--Keep insurance and investment separate. Avoid hybrid products that offer insurance.
--Even if you have employer-provided health cover, buy one self-cover, helps in case of job loss/switch
--Link your tax-saving investments to a long-term goal like retirement.
--Avoid investing in property as it is illiquid and generates low returns.