Diwali is a festival of lights, it is one of the most prominent festivals in India. Diwali represents the triumph of light over darkness. Diwali teaches a lot of morals in life, it also is a great reminder to secure our finances. Not only does this festival puts light upon the optimism and celebration of perseverance, it also sheds light on the lessons we can learn about investment and financial planning.
Let’s find out what are the teachings we can learn from the festival of lights on financial advice.
Clean Your Portfolio Yearly
People clean their homes and donate items that are no longer needed before Diwali. Spend the same time tidying up your investments. Every year, make sure your investment portfolio is in line with your short-term objectives and unforeseen expenses. What if you want to buy a car right away? Do you have the money for it, or will you need to borrow money from your investments? Additionally, while cleaning up, identify the investing strategies that haven’t been doing well and withdraw from them.
Plan for Your Future
Fortune showers upon those who plan for their future. The first day of Diwali is a representation of yearly rebirth, purification, and a fortunate beginning. This is the perfect time for you to assess your financial situation, break negative financial habits, better investments and start saving for retirement. Better profits come from making early and wise investments.
Have Clear Goals and Knowledge is Key
The key to investing well is knowledge. One must base their investments on clear objectives to avoid falling into a pit of bad investments. Goal-based investment takes into account changes to the financial plan and aids in maximizing return. You can begin investing early to achieve your goals if you’ve already made a decision. Investment strategies should always be centered on significant objectives like home ownership, retirement, children’s education, marriage etc.
Branch Out Your Investments
The third day of Diwali is the day of Lakshmi puja, the final day of the Hindu year. It is celebrated with the lighting of fireworks on what is regarded as the main celebration day. On the night of Lakshmi puja, rituals are performed all throughout India in honor of Goddess Lakshmi, the goddess of wealth, in order to welcome her into our clean homes. It’s a day filled with diversity in everything, from gifts to refreshments to firecrackers. In a similar vein, it’s important to choose the correct combination of investment portfolio. Diversification is key when it comes to financial planning as one should no put all their eggs in one basket. Also the risk is decreased with a portfolio is diverse.
Start Fresh with your Finances
Along with the New Year comes an opportunity for a new start. The first day of the lunar calendar’s light fortnight is the day after Diwali. Regarded as the start of the New Year. A comparable strategy must be used, and a monthly review of one’s investment portfolio is required. Finding investments that are underperforming for your benefit is crucial. Make sure that the current investments are in line with the desired outcomes, and start new with researching and making new investments.
Diwali serves as a yearly reminder to take control of one’s financial situation. The festival of lights teaches us several financial fundamentals that we may use in our daily lives to create sound financial plans. It’s time to start out on the right foot, make investment plans, and have a financially sound Diwali!