Undoubtedly, this year has been way different than previous ones. Not only due to the pandemic, or any changes in your personal lives, but also financially. The current year has been full of inflation and investments have lost a lot of value due to market volatility and downtrend. Earlier, the Diwali bonus was used for making valuable investments, but this time it seems quite different.
We worked really hard the whole year to get rewarded at our favourite festival, Diwali. Along with the inflation, we also have a lot of opportunities to buy on EMI due to the vast existence of credit and BNPL facilities, which also leads us to use our Diwali bonus differently than in previous years.
Here are 5 ways to use your Diwali bonus efficiently by looking at the current economic situation.
Paying off unproductive debts
Due to the easy availability of credits like 1/3rd payment schemes, you must have bought various items that are unproductive for now. In the scenario of inflation, there are high chances that you didn’t get to pay it using your regular income. So, it is high time to pay all your unproductive debts as soon as possible. A Diwali bonus could be a better way.
Pay your premiums
Due to the pandemic and other financial disturbances, it is normal to miss out on your premiums whether it is an insurance premium or mutual fund SIP. Your Diwali bonus could become your saviour this time. You can revive all your investments by paying pending premiums and restarting your investments to claim your right.
Create emergency corpus
One of the best ways to use your Diwali bonus is not using it anywhere. You just keep your Diwali bonus as liquid funds for your emergency times, as we can see various new startups and big organisations are firing employees irrespective of their abilities to grow their companies. What if you become the victim of such? It is necessary of having additional emergency funds
Invest in developing skills
When we talk about the firing culture of the organisations, it becomes necessary that you have to develop a skill that has the ability to make you earn well while you are not on your job. You can freelance your skill and can act as a source of active income.
Invest in the market
We understand that it is quite confusing these days on where to invest your money, when everyone is selling their securities out of panic. In such a case, various stocks have a low PE ratio, which means that they are selling at lower share prices but their fundamentals are strong enough. You can invest your Diwali bonus in investing in these kinds of stocks. When the market will recover, your stock will create wealth.
Considering these factors in your mind while using your Diwali bonus will definitely help you in managing your personal finance well. You must prioritise your Diwali bonus by making yourselves debt free to financially free.
Anushka Trivedi is a freelance financial content writer. She can be reached at anushkatrivedi.com