One of the most loved holidays in India is Diwali. It’s popular for its lighting, decorations, and holler. This festival keeps us all busy arranging plans and purchasing crackers, gifts, and sweets for everyone. On the other hand, this five-day festival of lights is a reminder to secure funds, remove the gloom of ignorance, and increase fortunes through prudent financial planning.
In this post, multipl will discuss the 7 most important financial life lessons from Diwali:
1. Invest With A Specific Goal In Mind
During Diwali, you purchase gifts for family and friends based on their ages, tastes, and preferences. Would it be appropriate to give a toy car to an 18-year-old girl? No, right. Similarly, one needs to have distinct financial goals at various stages of life. When investing, having a goal will help you get through some difficult times without disrupting your normal cash flow.
2. Plan In Advance
On Diwali, every household is beautifully decorated with lights. Thus, preparation for this festivity starts months in advance. Many people improve their home interior, bake sweets and other dishes at home, buy apparel, and do many other things. Similarly, investing early can result in better returns. Therefore, we must plan ahead of time not only for Diwali but also for our investments. However, you should exercise caution while investing. Before making a safe and lucrative investment, it’s important to have a comprehensive financial strategy in place.
3. Secure Yourself
During Diwali, your parents make sure you wear clothes that won’t easily catch fire. You also take precautions if there is any malfunction when crackers burst. This same strategy should also be followed regarding one’s financial health. Before investing in any financial scheme, you must seek the opinion of a financial professional. Make a thorough financial plan as well to prevent any surprises later.
Any profitable idea that seems too good to be true could end up costing you money if you invest thoughtlessly. Therefore, only put your money into a reliable alternative after assessing the pros and cons. Also, understanding your risk profile is important because it helps you make informed decisions that align with your financial goals and risk tolerance.
4. Manage Your Portfolio Regularly
People donate items and clean their homes that are no longer needed before Diwali. This is because it’s traditionally believed that Goddess Lakshmi visits only well-organised, spotless homes. The same logic also applies to your investment portfolio. Every year, make sure your investment portfolio is in line with your short-term goals and unexpected expenses. Plan new assets that could be valuable to you in the future. A clean and updated portfolio is crucial because it has a huge impact on your future performance.
5. Remember That Diversity Is A Must
There is no doubt that Diwali is a festival of lights, but lights alone don’t make the festival a pleasant one. Diwali offers a wonderful assortment of shopping, revelry, lights, fires, and other fun activities. And in order to avoid missing anything, organisation is important. As with a good portfolio diversification, different financial instruments can provide you with benefits. Therefore, you must evaluate which plans are more or less dangerous by taking into account a number of factors.
6. Prepare For Emergency Situations
During the cracker-bursting celebration, we make sure our fire suppression systems are ready to prevent any potential mishaps. Similar to investment preparation, it’s important to have enough insurance coverage to handle life’s uncertainties. Preparation with an insurance cover will be valuable when unanticipated losses arise.
Also, if you have an emergency fund, it will help you navigate unpredictable and challenging situations without compromising your financial well-being or peace of mind.
7. Cut Out All The Noise
Diwali is known for its lighting and fireworks displays. The music from all of these celebrations is powerful enough to dull your negative emotions. The investing world is the same. Avoid misconceptions, myths, or decisions based on incomplete information. Rather than all of this noise, your financial decisions should be backed by proper research and analysis.
Diwali is a yearly reminder to take control of one’s financial situation. It teaches us some of the most important financial life lessons. To properly enjoy the celebrations, everyone must have the ideal financial budgeting, planning, investments, and awareness of the main financial lessons.
multipl is the world’s first “Save Now, Buy Later” app, which helps you spendvest through goal-based savings.
Based on the duration, purpose, and risk profile, multipl allocates appropriate assets (mutual funds) in your personalised investment portfolio so you can reach your goal with maximum safety and liquidity. You can create both short-term and long-term savings goals like Digital Silver Goal, Digital Gold Goal, Gadget Goal, Vacation Goal, Child’s Education Goal, Retirement Savings Goal, Down Payment Savings Goal, and many more. In addition, brands contribute with you to save more towards your goals. To learn more, download the multipl app on Android & iOS now!