Financial Lessons to be learnt this Diwali

financial lessons to be learnt this diwali

Diwali, the festival of lights, also offers many lessons which can be used in financial planning. It is also the most marketed Indian festival ever. For most of us though, this festival is about joy, family gatherings, some great food, and happiness. On the other hand, this festival is also about trying to appease the goddess of wealth. Though there can be some goals which can be kept in mind for the upcoming festival which all of us can celebrate with no burdens on ourselves.
GOAL 1: TO SAVE AT LEAST 20% OF YOUR EARNINGS BY NEXT DIWALI:
If you haven’t started saving yet, there isn’t a better time than this Diwali. Saving is the cornerstone of any wealth creation plan. The more we save, the more we can invest and greater will be the wealth we invite into our homes.
GOAL 2: TO HAVE A FINANCIAL PLAN IN PLACE BY NEXT DIWALI:
How we invest in our savings is vital to becoming wealthy. The wealthy got where they are because most of them had a plan to invest what they saved. Educate yourselves about personal finance and find out which financial tools would be best, based on your financial goals and the time you have available, in terms of your investment horizon. You should create a very basic financial plan which tells you what your main financial goals are and how much time it will take to achieve them.
GOAL 3: TO MEET AT LEAST ONE FINANCIAL GOAL BY NEXT DIWALI:
If you want to do something, set a target first. A financial goal, be it setting up an emergency reserve or buying a car, requires setting targets. Unless you have a target in mind, you will only find excuses for not being able to meet your financial goals.
GOAL 4: START INVESTING FOR RETIREMENT:
Most of us in our late 20s and 30s rarely think about retirement. We are mostly focused on our careers and that’s a good thing. What is not a good thing is that retirement planning needs to begin as early in your career as possible – and we tend to not think about it.
GOAL 5: GOAL-BASED INVESTING:
On Diwali, gifts are bought for friends and family as per their age and personal references. Similarly, our investments should also be based on distinct goals. Investment plans should always be focused on important goals, like buying a home, retirement, children’s education, marriage and so on. Every goal in life usually impacts our personal cash flow. Goal-based investing with the proper review will incorporate the changes in our financial plan in order to derive maximum benefit.
This Diwali indeed is a good time to start thinking about some of these goals if you haven’t already. Don’t just stop thinking, start investing as well. This post might be a stepping stone for your financial goals.

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