Gifts, Diwali is an important festival that celebrates the triumph of good over evil. During this festive season, household preparations start in full swing, and it is a time for joy and spending quality time with friends and family.
A lot of people consider it to be a new start. This time of the year can be a good way to start inculcating good financial habits.
They significantly contribute to securing your future and support in achieving your goals in life.
Here are 4 ways we can incorporate good financial habits on this auspicious occasion of Diwali:
- Learn to create a budget for yourself: Budgeting is crucial for creating a financial plan. The basic thumb rule one to consider while creating a budget is by dividing the spending into 3 categories: 50% for basic needs like food, clothing, shelter and medical needs. You can use up to 30% of your income to invest and spending on things you want. You should save 20% of your income. Setting up a budget will give you an idea of how much you are earning vs the amount you need to spend and where to stop spending. It will also help you achieve financial goals, including your dream home, building an education fund for your child, starting your own business, etc.
- Clear all your debts: As Diwali brings light to our lives, reducing your debt burden can help brighten your life and maintain good financial health. A good way to start would be to repay high-interest loans first to avoid debt burden. Another way to easily manage your loans would be to set up an auto repay and consolidate multiple loans into one. Personal loans usually offer lower interest rate than credit cards, converting your credit card loan to a personal loan can help reduce debt burden even further.
- Leverage the best offer online: Many websites offer pricing based on location, previous shopping and browser history. It means they can recognize their old and new customer and based on that; they can accordingly offer discounts and rewards to their new customers. However, we all have tried to use multiple e-mails and phone numbers to avail first-user for getting discounts from websites. There are multiple other ways a consumer can compare the price of the product through multiple mobile apps before buying a product. These are the sites for comparing specific products and services such as mobile phones, hotels, electronic gadgets, etc.
You can also check apps that offer coupon codes and special discounts for their consumer, as Fibe.in (formerly known as EarlySalary) offers massive discounts to its users during this festive season.
- Invest in SIP (Systematic Investment) : With a bonus coming in, Diwali may be a good time to start investing in mutual funds. A systematic investment plan is a disciplined method of investing in mutual funds. It helps you to invest a fixed amount in mutual funds over an interval of time that works for you.It’s easier to start with a small investment and increase the amount over time as you get more comfortable. A major benefit for you is that it can help in creating wealth over a period. It offers diversification and provides healthy returns in the long run. So, if you are looking for a way to invest in mutual funds, then SIPs are a great option.
