This Diwali Bring Some Money Happiness

Normally in Diwali most of us get bonus from employer. This makes our income gets a  boost, but on the other, there are enough demands like  buying gold, new clothes, lights, firecrackers and fancy gifts etc  which leads to overspending then the bonus we got. Online portals, Diwali offers further leads to overspending. In this scenario Good Money habits can stop us from going overboard. Let us start some good habits from this Diwali:

1. Dhanteras: Organize the things

As all of us organize the things before Diwali, Similarly we can create a financial inventory of accounts, credit cards, and assets. This can be done in a simple spreadsheet.  We should also consolidate bank accounts and close the credit cards which are not required. We need to insure the valuables like home, gold and  Re-evaluate life and health insurance covers. On this auspicious day we all buy something new, this time let’s make a good investment which can be good for our future.

 

2. Narak Chaudas : Remove the Impurities

On Narak Chaudas (नरक चौदस) people take speacial bath to remove all impurities from their body. Similarly we can take few actions to remove impurities from our Financial LIfe like repaying excess loans and work on improving credit score? Loans like credit card loans and personal loans not only add stress to an individual's life but reduce credit score thus limiting our ability to get the loan which we may really need - ex: a home loan. Also we should review and clean-up your Investment portfolio. We can identify the non-performing investment schemes and discard them appropriately.

 

3. Diwali: Play Safe and Manage the Risk

We all enjoy fireworks, but it requires to take precautions to keep us safe. Similarly, while taking risk on investments or money matter safety net should be applied. Most investments are made in an ad-hoc manner and hence ends up having investments which do not suit one's risk profile or are underperforming. We can spend some money to hire a professional who can help us to make investments based on our specific goals/requirements.

4. The New Year Day

This time on the New Year, let’s take a pledge that I will save more and ensure that I follow my financial plan and work towards financial freedom.

 

5. Bhai Dooj: Let’s Gift something different

We all give some gifts to our sisters on Bhai dooj Let’s give something different this time. What about a monthly SIP or a financial education course which would help the siblings manage their money better?

 

Let’s make this Diwali a truly happier and more prosperous by following a few good money steps and secure our financial life.