Diwali is that time of the year when we de-clutter our homes, keeping essentials and throwing away or donating the rest. This can also be a good time to declutter our finances.
Declutter And Create A Financial Document Checklist
“Just like you clean up your home during Diwali, it’s important to declutter and create/organize your financial document checklist. Review your bank account documents, insurance policies, investment statements, etc,” says Priti Rathi Gupta, Founder, LXME. You can discard outdated paperwork and can store the important ones securely, adding to DigiLocker can be helpful. An organized setup becomes a strong foundation for your financial planning.
Review Your Investments To Ensure You’re On Track
Glance through your portfolio and identify investments that are not performing well or need rebalancing. “Ensure that your investments are in sync with your goals or objectives and that the nominations are in place for each investment. You can look at consolidating investments. Ideally, your portfolio should have no more than 10-12 funds,” says Gupta.
Invest In Gold Smartly This Diwali
It’s that time of the year again when we flock to the streets to grab a piece of yellow metal. “This Diwali, make a smarter choice while you continue with your traditions, invest in gold the smart way via Gold mutual funds, Gold ETFs, etc rather than physical gold/gold jewelry,” says Gupta. Buying some gold jewelry is ok and for that, you can take advantage of offers jewelers come up with during the festive season
Lighten Your Financial Load By Paying Off High-Interest Debt
Just as you declutter your homes during Diwali, take this time to reduce your debts, especially by paying off your high-interest loans first like credit cards and personal loans. This will give you peace of mind and open up doors for more savings and investments in the future. It is also important to be wise when taking loans during the festive season. These loans may come with attractive offers but it is important to understand your repayment capacity before you take a loan.
Update Or Start Building A Fund For Your Critical Goals
Diwali is a time for new beginnings making it ideal to start or boost your funds for critical goals like emergency, retirement, and child education. Aim to build these funds or add more for a brighter and more secure financial future. Rather than wait for the new year, start setting your financial resolutions this Diwali and stick to them.
