Diwali is marked as the celebration of the arrival of Lord Rama and Sita after 14 years of exile and since then, this day is marked as the triumph of good against evil. While I try revisiting my old childhood memories, I could remember the glimpse of how I used to demand my parents for the firework and crackers. While I used to relish the delicacies and enjoy burning the crackers, I used to detest the home cleaning rituals. As I grew up, I understood the importance of cleaning the home while realized how I am burning a large amount of money by spending it on firecrackers, which could be utilized more efficiently for my education or other aspirations. Each one of us has our own ways to celebrate the festival in the grandiose style along with our hearts in the row of lamps. So can we conceptualize our lives without festival? Impractical, right? However, this festival of lights is much more than the sweets, crackers, rangoli, delicacies, etc. Here are a few life and financial lessons which Diwali teaches us, and if implemented, can help us to live a prosperous life in the real sense.
1. Be safe
Everyone enjoys watching the beautiful visuals of fireworks in the sky. At the same time, we also need to take a few precautionary measures to keep ourselves and our family safe. Also, when we burn firecrackers, we give the utmost attention and care to children’s safety and often advise them to burn firecrackers under the supervision of adults. Why? Because adults can predict when the situation can go wrong and can take corrective steps. The same set of plans should be inculcated with respect to our financial health. It is advisable to invest with the help of a financial advisor who understands the situation, can look at the bigger picture and are equipped to take corrective steps for you.
2. Advance planning
Preparations for Diwali starts a few days prior to this festival. Everyone has their own to-do list planned which includes items to shop, kind of crackers they need to burn, whitewash of the house and an endless list of tasks that needs to be completed before the final day. The same way we need to plan and invest early for the future to achieve our financial goals. By investing at an early stage, one can start taking the benefits of the power of compounding.
3. Plan an emergency rescue
When there are firecrackers burning around us, we try to keep emergency rescue options handy like fire extinguishers, water and ash if required to avoid any sort of accident that might occur. When planning for the future financial life, you should always opt for options like an insurance policy which helps to deal with uncertainties if any unforeseen situation occurs.
4. Clean your home and portfolio this Diwali
Cleaning home and workplaces are the topmost things to do before the arrival of Diwali. We give away the things which are no longer required and buy the new ones. Likewise, investors should always hold the same approach while investing. It is recommended to periodically monitor your investment portfolio to make sure that your investments are in sync with your financial goals and well prepared to meet the emergency expenses. It is recommended to exit from non performing stocks that don’t have any growth potential.
To summarize, “Money is always eager and ready to work for anyone who is ready to employ it.”
There’s no doubt that the festival of Diwali brings in ecstasy and gaiety in our lives. But along with that, it also teaches us a lot about money management lessons. So with the start of this auspicious festival, it’s time to think about your financial goals as well.
Have a bright, safe and more importantly, a financially happy Diwali!