Diwali is one of India’s most loved festivities. For most of us, Diwali spells joy, laughter, togetherness, and gratitude. Diwali is the time to usher in prosperity and to “bring in new” things. In the Hindu tradition, buying gold and other expensive materials is usually considered auspicious around Diwali, especially on Dhanteras. It is very interesting to see how some of these rituals lend themselves to financial well-being and wealth building.
Diwali is a celebration of lights that imparts numerous financial lessons as well. From this holiday season, you can take the following tickets and put them into action as soon as possible.
Planning In Advance
Diwali is a festival during which people plan to buy new things, vacation, and other requirements well in advance. For instance, people book flight tickets months in advance. Planning in advance helps to reduce the extra cost you pay for the tickets.
Similarly, it is important to plan for investments also. For instance, investing for future goals will help in taking advantage of compounding returns and it also clears the picture of what an investor can expect in terms of financial growth.
On Diwali, gifts are bought for friends and family as per their age and personal preferences.
We may keep in mind the gender, age, and personality of the person to be able to select a gift. Naturally, someone would not prefer to gift a toy car or a doll to an 18-year-old and similarly, it would be hard for a 5-year-old to make use or comprehend a book on Statistics if that were gifted to him or her. So, the same applies to investment and financial planning as well.
Our investments should also be based on distinct goals like buying a home, retirement, children’s education, marriage, and so on.
Every goal in life usually impacts our personal cash flow. Goal-based investing with proper review will incorporate the changes in our financial plan to derive maximum benefit.
A few weeks before Diwali, people begin to start their yearly rituals to clean their homes and dispose of old things. In the same way, we should review our portfolio.
A good place to start with personal finances is to take stock of your current situation. Note down every asset and liability that you have. The idea is to check if the existing investments are in line with the financial goals and objectives. Our portfolio could consist of stock that might not perform. It is important to see what works in favour of your plan currently. If it does not make sense anymore, repurpose those investments.
Prevention is Better Than Cure
With all the thrills, there comes the danger too. Bursting crackers is part of the celebrations of Diwali. However, one must be cautious while bursting crackers. Similarly, in health or life insurance related matters, we should adopt the same caution as a risk management practice.
It is important to have adequate insurance cover to meet your requirement.
Emergencies arise untimely and if separate insurance is not maintained, it may eat up savings along with other investments and delay the fulfilment of financial goals.
Every year, Diwali comes as a reminder to take charge of fiscal health. This Diwali, promise to work on your financial plans, keep track of your investments, and consult with a financial advisor before investing.
We wish this Diwali brings Health, Wealth, Success, and Prosperity to your life!