Let us look at four aspects of Diwali and how the theme of brightness is suggestive of an important lesson for our financial future.
Sparklers come with risk
Most Indians have grown up spending Diwali amid the fun of sparklers and the deafening sound of crackers. When we play with crackers, we need to ensure that you don’t end up playing with fire. This serves as a reminder on why each of us should always remember the risk while looking at returns. Ensure that greed, fear, and hope do not distract you from your long-term financial goals.
Change is the only constant
Diwali is an important reminder of the ephemeral nature of things. Festivities come and go and we are back to our routine. It is hard for us to accept it, but the reality is that a lot of things are extremely uncertain and also ephemeral. Keeping this in mind, getting an insurance makes a lot of sense. This Diwali, ensure that you take adequate insurance for your life so as to provide comfortable sustenance expenditure to your family in your absence.
Part with debt as soon as you can
Diwali, as a time for festivities, is also a time that causes greater expenses. Some resort to huge debt via credit cards and personal loans. Instead, try to plan your next Diwali with a small 1-year SIP in a debt fund. The discipline will ensure that next year, you don’t end up borrowing for your Diwali expenses. You have a good 12 months to plan ahead and the SIP can also ensure that the burden is reduced by regular investing.
Good ideas always triumph in the long run
Diwali marks the return of Lord Rama back to the kingdom and the triumph of the path of goodness over evil. Lakshmi Pujan reminds us that wealth creation has to begin from your side and it has to begin today. Use the Diwali festivities to start off an equity-SIP for the long run. Be sure to tag it to a specific goal like your retirement, your child’s education, their wedding, etc. This will ensure greater commitment.