Diwali is a festival of lights that is annually observed with great beauty and zeal throughout the nation and the rest of the globe. This fortunate event is held in remembrance of lord Rama's triumphant return to his kingdom following his conflict with the demon king Ravana.
Our ancestors have long spoken about the moral lessons the celebration gives us, particularly how it portrays the triumph of good over evil. But have you ever thought that the festival is a great opportunity to discover different financial lessons as well?
To live and enjoy a balanced existence, both of these- moral and financial lessons- are crucial. Let's talk about some key financial lessons that this celebration imparts to us.
Plan and invest early
Diwali is one of the most significant celebrations in India. The preparations begin months before the actual festival. The same holds true for your investing portfolio. Similar to the festivities, early planning for your investments will yield greater results. One can get good returns by early investing and compounding. We must thus not just prepare early for Diwali but also for our investments.
Remove the unnecessary assets from your portfolio
Before Diwali, we clean our houses, arrange our belongings properly, and get rid of everything that is no longer necessary. Applying the same idea to your assets is possible. You should routinely check your investment portfolio. Regarding the timely and projected returns, one should recognize non-performing investment schemes and dispose of them accordingly.
The performance of your whole investment portfolio will be negatively impacted by underperforming or nonperforming assets. In this situation, you must get rid of them to improve the performance of the entire portfolio.
Be safe from the unseen mishappenings
Even if we adore fireworks, we must always take the necessary steps to keep ourselves safe. It is essential to take precautions to prevent accidents that might cause considerable losses. Similarly, in financial situations as well, the same measured risk with safety net should be used. It is crucial to secure your life and your property with a financial plan that will provide a safety net for your family in the event of any unplanned calamity.
Research well before investing
Without shopping, Diwali would not be complete. On Diwali, we carefully select the products we want to buy by conducting online research, asking friends for recommendations, or consulting any other sources before we go shopping. The same philosophy also applies to your investing decisions. Research and preparation are also necessary for market investing. You will most likely obtain a fantastic bargain if you prepare ahead and do your homework.
Lay out your goals well in advance
On Diwali, presents are purchased for friends and family according to their age and personal preferences. Similar to this, the foundation of our investments should lay on defined goals. Investment strategies should always be centered on significant objectives, such as house ownership, retirement, child-care expenses, marriage, and so on.
Every life objective often has an influence on our ability to pay our bills. The adjustments in our financial plan will be incorporated using goal-based investment and careful assessment in order to maximize profit.
Take advice from the one who knows
We all like seeing fireworks, yet we also go to great lengths to protect our families and ourselves. Regarding one's financial health, the same strategy needs to be put into practise. Additionally, we always explode crackers carefully, and kids should always burst them with an adult present.
Likewise, before investing in any schemes, one must get the opinion of a financial advisor. There are many strategies that first seem appealing but end up being a complete failure and being under the guidance of an expert, helps you shield yourself from these circumstances.
So now is the time to properly manage your funds so that you may enjoy a safe, happy, and a financially planned Diwali.