Diwali, one of the biggest festivals in India has a lot to offer. It brings lights and colors to everyone’s life and also it offers some key lessons that one can implement for financial planning.
Future planning
We all end up planning for Diwali much before it comes. We plan our budgets for different things like gifts, clothes, new purchases, and crackers etc. but we seldom plan so well when it comes to our usual finances. Taking a cue from Diwali plan, we must allocate budgets to all our expenses throughout the year. Budgeted expenses can give us better control over the finances and also help us plan our savings and investments.
Protection
We often see parents advising their children to be careful while bursting crackers. We take proper cautions and advise children to be better safe than sorry. Similarly, in life insurance or health insurance sector, we should practice this advice of being safe than being sorry. We all know how unpredictable life is and not just in terms of death but even health ailments. We never know when our family members or we may have to face some major ailment. For such unpredictable times, we should prepare ourselves by buying life and health insurance policies.
Also Read: 7 Leadership Lessons To Learn From Diwali
Goal-Based Investing
During Diwali, we buy different gifts for different people. These gifts are sometimes basis budgets, sometimes basis age and sometimes based on personal preferences. In the same way, we must plan our investments based on distinct goals. Things like children’s education, marriage, retirement or buying a house should be kept in mind while planning the financial investments.
Variety is Beneficial
Diwali is symbolic in offering a variety of things during the celebrations. From new clothes to firecrackers, lights, sweets, rituals, there is a lot associated with Diwali, and this variety makes the festival even more fun. Similarly, in life, we should try and bring about some variety and diversification in our investments. Like they say do not put all your eggs in one basket, even while investing keep this in mind as investing in different portfolios reduces the risk.
