Diwali, the festival of lights offers interesting financial lessons which can be used for future planning. It is also the most celebrated & marketed Indian festival ever. For the most of us, this festival is about joy, family get-together, good food and happiness. On the other hand, this festival is also about appeasing the goddess of wealth Laxmi ji. There are a few goals which can be kept in mind for the festival of lights so that all of us can celebrate freely.
5 Tips to Manage your Finances Better
GOAL 1: SAVE AT LEAST 20% OF YOUR EARNINGS BEFORE NEXT DIWALI
If you still haven’t saved enough, there isn’t a better time than Diwali. Saving is the foundation stone of every wealth creation plan. More you save, greater you invest. This leads to better wealth creation which we invite into our homes.
GOAL 2: HAVE A CONCRETE FINANCIAL PLAN IN PLACE
How smartly we invest our savings is important to turning rich. The affluent class knows how to save money enough & invest proportionately. Educate yourselves about personal finance well and find out which financial tools would suit the best. This should be based on your pre-set financial goals and the time you’ve availed, in terms of the investment horizon. You should at-least have a basic financial plan which tells you what are the main financial goals and how much time will it take to achieve them.
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GOAL 3: ATTEMPT TO MEET AT-LEAST ONE FINANCIAL GOAL BY NEXT YEAR
If you want to achieve something, set a target first. A financial goal be whether it is setting up an emergency reserve or buying a car requires fixing up targets. Unless you have a target in mind, you will only end up with excuses to not meet your financial goals.
GOAL 4: START INVESTING FOR GOOD RETIREMENT
Most of us in the late 20’s and 30’s rarely think about retirement. We are generally focused on how our careers look, which is of-course good. What is not good to think is that retirement planning needs to begin as early as possible in our careers. We tend to ignore it big time.
GOAL 5: GOAL-BASED INVESTING
On the occasion of Diwali, gifts are bought for friends and family according to their age and personal references. Similarly, our investments should also be based on distinct goals. Investment plans should always be focused on major financial goals, like buying a home, retirement plans, children’s education, marriage expenditure so on and so forth. Every goal in life usually impacts our personal cash flow. Goal-based investing with the proper review will incorporate changes in our financial plan in order to derive maximum benefit.
Diwali, indeed is a good time to start thinking about some of these goals if you already haven’t. Don’t just stop thinking, start investing! This could be the stepping stone for your financial goals.