How to Manage Your Money This Diwali for a Bright & Stress Free Future?
It’s going to be Diwali time soon and we all cannot wait for it. Diwali is the most awaited festival in the country and the happiest holiday time for most of the folks who celebrate it with Lamps, Rangoli, Fireworks, Gifts, Sweets Shopping and much more. Many of us must be looking for retail discounts and offers at various retail and e-commerce sites. The mood is totally enthralling in this five day festival.
Diwali is the festival of lights symbolizes the victory of hope over despair and knowledge over ignorance. Yet, we celebrate the festival every year with lots of pomp and show but we continue to forget the real significance of the festival. Diwali is also about worshipping wealth and money, but most of us prefer ignorance over knowledge. Rather than planning to appreciate our wealth we only end up being a spendthrift.
We should all look forward to celebrate a smarter and stressful Diwali by investing in mutual fund rather than spending. The best way to deal with your hard earned income will be putting them in some lucrative investment avenues by starting an SIP for a smart financial planning rather than spending a bomb in festivities.
Read Related Blog: Why One should Start an SIP for Building Financial Wealth?
We may be sitting on a pile of cash but most of us are unsure over putting it to good use. You should start with Planning. Planning includes identifying your challenges and future Goals. Once you have identified challenges and goals, you can priorities them and finally create a proper plan that can help you achieve your goals and fight off your challenges and fears. Like, if you have Loans to pay off than do not buy costly appliances this Diwali through EMIs. You should rather pay off your existing old loans. If you haven’t created an Emergency Fund yet, create one. Creating Emergency Fund will give you peace of mind and will protect you against any exigencies in the future. If you have already created an emergency fund then you should invest your money and allow it to appreciate. You should not keep money idle in Savings Account because it won’t help you counter the Inflation Bug and therefore has to be deployed productively to allow it to multiply productively to win over inflation.
A Financial Investment comes up with a promise of a bright future. The amount which you will invest today will get you closer to financial success. So, opt for a wealthier state of mind this Diwali.
Investments require Personal Care. You need to feed it and nurture it before it finally matures. There are few points to take care of before investing:
- Design your Financial Plan religiously with utmost care. Financial Plan should not be ad hoc or impromptu in nature.
- Assess your Risk Appetite before investing.
- Your stage of the Life Cycle (Child, Teenage, Student, Adult, Married Adult, Parent, and Retired) should be taken into consideration while planning.
- Find out your Financial Goals and challenges ahead.
- Identify various Financial Investment options like Mutual Funds, Insurance, and FDs which you find suitable.
- Identify the time horizon and cost associated with your investment.
- Take a cognizance of Tax implications.
- Use the Diversification strategy and allocate your assets well after identifying the most suitable financial instruments for investment. One of the basic tenets of investment is Diversification which is all about reducing your overall risk from your portfolio.
- Asset Allocation is all about investing your investible surplus over a variety of financial Instruments like Equity, Debt, Real estate, Gold, Life insurance, Mutual Funds etc
- Use SIP for investments in Mutual Funds to avoid risk in the financial market and at the same time achieve financial discipline. SIPs and RDs are the most effective mediums for investments options.
- Invest and review your investments regularly and at the same time enjoy the power of compounding.
- Investments are a must so invest prudently!
- Do not speculate instead allow your money to appreciate.
- Early bird gets the bigger worm that means the earlier your invest better are the profits you reap in.
- Identify a Wealth Advisor who can help you with your investments.
Let this Diwali be Investments wali where your DEEP JALTE RAHE, SIP CHALTE RAHE. Plan your financials judiciously and start investing this Diwali. A Penny saved and invested this Diwali will appreciate tomorrow and bring you good returns and eventually a happy future.
Happy Diwali! Happy Investments!
Mr. Ajay Kumar Jain, M.Sc, Chairman And Managing Director
Being the Chairman And Managing Director, he focuses on holistic investment planning and wealth management and tries to make investment planning simpler for retail and HNI investors. Investor education is one of the prime things that Mr. Ajay Jain focuses on as he believes financial education is the foundation of successful investing. With over two decades of experience, Mr. Jain has made a mark in the Indian mutual fund industry due to his compassion and sheer hard work.