This is in continuance to our last newsletter on festival budgeting. Many of you appreciated it, many new subscribers found sense in that post. And I am so happy to share that few actually implemented on it and stick to their Festival Budget. I am glad as we together took some steps to financial freedom.

Going further, let us relook at Diwali season and see if there are some lessons as take away.

Diwali marks a new year, it suggests FUTURE

Future Planning is a first take away from Diwali. For traders and business people, Diwali is a new year and that is why significance of planning multi-folds here. Even on Diwali we must keep the future in mind and spend wisely.

You can do it in simple ways –

  • Choose an SIP over Shagun
  • Invest in gold then in jewelry
  • Gift kindness and not exuberantly pompous gifts

PROTECTION is better than loss.

Since childhood we are always told to burst crackers safely. To protect ourselves from accidents. Now as a grown up, I advise young kids and youngsters to protect environment because that is how we are protecting life.

In financial terms, protection is life and health insurance. As a lesson from Diwali, we must indulge in risk management practices to meet the forever increasing medical expenditures. You can also top-up your insurances as a symbol of investments on Diwali.

GOALS and investments

The reason I am associating goals with Diwali is because, I have grown up seeing my family & friends making financial goals for Diwali. Be it a new refrigerator, a sofa, a car or a house. We must learn the lesson of Financial Goals and how the same process can derive us maximum profits.

Every goal during Diwali lays an impact on our personal cash flow- be it the salary or bonus. Goal based investing helps us in keeping the cash flow healthy without affecting our financial plans and also leads to benefits as planned and sought.

We all love NEW THINGS

Every year Diwali introduces some great new things. I love how the Rangoli has evolved or the beautifully done lights – we feel like keeping them lit throughout the year. It happens when we try these new arrivals – be it the crackers, lights, décor options or sweets for that matter.

This very aspect of Diwali inspired a take away in my Diwali lessons – portfolio diversification. Many a times – the new is better and variety doubles the joy of celebration. Be it the new cracker or new mutual fund – the variety in your basket reduces the amount of risk.

CELEBRATION helps us reach out

Diwali Celebrations also bring together friends and acquaintances – even those who are usually not in touch throughout the year. That is the beautiful take away, we shall reach out, reconnect and revisit our portfolio’s and exchange some ideas. A reach out not only helps our portfolio grow bigger & better, it also opens up avenues for further celebrations in the future.

These are my take away points for Diwali 2016 with certainly some wisdom points as your financial fitness expert. Apart from the above, let us also do our bit for Environment- let us pledge for clean & green festivals from now on.

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