Have You Received Cash Gifts on Diwali?
During the Diwali celebrations, family, friends, and acquaintances exchange presents. In addition to chocolates, sweets, and trinkets, there is also an influx of cash – Diwali bonus and cash gifts!
After Diwali, when we exchanged notes, my nephew informed me that his parents had given him cash gifts. I informed him that his grandfather also handed me cash this time:)
His next inquiry was about what I intended to do with the financial gift. It sparked my interest as I intended to purchase HOKA Speedgoat 5. I have been on the lookout for trail running shoes and Hoka Speedgoat has been rated as one of the best trail running shoes for 2022.
The Personal Finance Expert in me kicked in: Rather than spending money on materialistic ambitions, I ought to consider investment options that will aid me in my retirement planning.
As a shoe enthusiast, it is easy and enticing for me to purchase another pair of shoes. If I want to maintain a healthy financial status, I must practice delayed gratification.
In addition, my nephew was observing me. To teach him the value of investing and delayed pleasure, I was required to take the initiative.
There are numerous intelligent uses for my financial gift:
- To invest in mutual funds, both with lump sums and SIPs.
Mutual funds can earn inflation-beating returns in the long term and are ideal for wealth creation. The selection of mutual funds will depend on suitability based on my risk profile, investment horizon, and objectives.
- Increase my health insurance coverage, which I’ve been contemplating for some time.
Covid has emphasized the need for affordable but adequate coverage. Medical inflation is double-digit, cost of hospitalization and procedures is exorbitant.
- Obtain home insurance, which has been a priority for me.
If you’re wondering why Home Insurance is a priority, it compensates you for your losses. This is especially vital in the event of damage caused by natural catastrophes such as earthquakes, storms, cyclones, floods, etc. These are unpredictable and unpredictable events.
- Contribute to my Emergency Fund
An emergency fund is the critical sum of money that you should set aside to deal with life’s unforeseen financial curve balls. It serves as a safety net, covering you in the event of an unexpected, unanticipated event.
You are probably curious as to what I and my nephew Yash did with our respective financial presents. Mutual funds were our chosen investment vehicle.