The festivals of Lights, Crackers and Sweets, Diwali, is one of the most celebrated festivals of India. Diwali is a major cultural festival of lights, celebrated by millions of Hindus, Sikhs and Jains across the world.
It is not just one day of the festival but five days of celebrations.
Is there a connection between these five days and financial planning?
Can there be some correlation? If you want to know more, please read ahead.
Let’s continue to improve our Financial Planning from these 5 days Diwali season:
Day 1: Dhanteras (The Great Fortune Day): Dhanteras is considered an auspicious occasion to purchase clothes, jewellery, utensils, gadgets. It is also believed that buying gold and silver on Dhanteras bring more wealth and prosperity. On the day of Dhanteras, people also worship Lord Dhanvantri, the God of Ayurveda.
Fortune favours those who plan for their future. This one day before the day of Diwali is a symbol of annual renewal, purifying, and felicitous inception. This is your chance of evaluating your current personal finances. Ask your investment advisor to scrutinize your portfolio and identify mutual funds or stocks that are not performing well. Ask him to use his methods of analysis and experience to ensure that the existing stocks are in sync with your goals or objectives. Discuss as to how he would evaluate all your investments. A good day to dedicate to review your portfolio; it could consist of irrelevant old mutual funds or stocks that could adversely affect other assets too. Therefore, one needs to review them too with your investment advisor. Hiring an investment advisor to take care of all this activity will give you a professional opinion and save you money.
Day 2: Naraka Chaturdashi (The Great Knowledge Day) – In some regions of India, Kali Chaudas is the day allotted to the worship of Mahakali or Shakti and is believed that on this day Kali killed the asura (demon) Narakasura. Hence also referred to as Naraka–Chaturdashi, Kali Chaudas is a day to abolish laziness and evil which create hell in our life and shine a light on life. This day is another reminder of good winning over the evil. Like Ravana, find out your 10 heads.
When planning to invest, knowledge is the key. The second day of festivities and its rituals are to liberate any souls from their suffering in Naraka, or hell, as well as a reminder of spiritual auspiciousness. So as to not get pushed into a hell-hole of bad investments, one must base their investments on distinct goals. When you are lighting a lamp, you eliminate the darkness surrounding you. Similarly, you dispel our ignorance related to finances, investments etc. Symbolically, a lamp signifies that enlightenment and possessing knowledge is precious. Embark on a journey to reading more about financial planning and investments. Make your relationship with money better and better. It is always a positive point that helps you to dispel the haze encompassing your financial wisdom, leading you to be more financially empowered
Goal-based investing incorporates the changes in the financial plan and helps cull maximum benefit. If you have decided on a goal, you can start investing from an earlier stage to meet those goals. Investment plans should always be focused on important goals, like buying a home, retirement, children’s education, marriage, and home-improvement projects.
Day 3: Diwali (The Great Lights Day) –Four Wealth Quadrants
Indians prepare by cleaning, renovating, and decorating their homes and workplaces. People wear their finest clothes, illuminate the interior and exterior of their homes with diyas and rangoli.
The festival is widely associated with Lakshmi, goddess of prosperity, with many other regional traditions connecting the holiday. They perform (Lakshmi puja) – worship ceremonies of Lakshmi, the goddess of prosperity and wealth, and partake in family feasts, where mithai (sweets) and gifts are shared.
With so many events happening on the same day, we welcome Goddess Laxmi to our homes.
Same way, we should celebrate the 4 pillars of prosperity in our homes. Physical Health, Time wealth, Social Wealth and Financial Wealth. Ask yourself If you are blessed with all the four types of wealth? If not, make plans and promise yourself to focus on this 4 wealth quadrants from today. Read more on 9 Lessons to Learn from Diwali for Financial Planning
Day 4: Annakut/Padwa/Govardhan puja (The Great Start of Hindu New Year) –
With this new year beginning in our Hindu calender, make firm plans of:
1. Make clear goals for your financial life ahead
2. Check for all goals are in sync with your current investments.
3. Make your happiness index, that is what makes you happy. With this list, add to your wishlist.
Day 5: Bhai Duj/Bhau-beej (The Great Day of Sibling Affection snd Promise of Protection)
To Protect and Love your brother or sister. As the day signifies, make plans of 4 important aspects of protecting your financial life:
a. To ensure that all financial goals and commitments towards your family are honoured, plan to take term insurance policy. This should ensure a stable lifestyle for your loving family on your death.
b. Basic Health insurance, accident insurance and critical health insurance plans would provide for the health and critical illness coverage and stable lifestyle in such contingencies.
c. Creating contingency funds could act as an emergency fire extinguisher. Unpredictable situations like a COVID-19 or a lockdown doesn’t come announced. Keeping 6 months to a 12 months household expenses in a separate emergency fund is advisable.
d. Protect your wealth: While creating your wealth, working on your goals and making investments, always remember to be thankful and grateful for all your assets. Love them. Protect them. Care for them. Care in terms of ensuring that it doesn’t get eroded. BY making your will also. BY ensuring you follow your financial plan and keep consulting your financial planner regularly. BY ensuring that you get your money when you need it exactly.
With this, I have made an attempt to align your 5 days of lights festival with your personal financial planning. Make sure to keep checking your goals, investments and keeping track of them as well.
Your own richness principles should be the foundation for your financial planning and not rely on all these noises. It is better to take help from a Registered investment advisor rather than making an impulsive decision.
To conclude, have your own principles for your personal finance. This Diwali, promise to focus on your financial plans. Please keep track of them while making all your investments.
Stay Safe. Keep everyone around you safe, happy and believe in your money working for you. Make sure that money makes you happy this Diwali!
We wish this Diwali brings you HEALTH, WEALTH, SUCCESS, PROSPERITY leading to a happy blissful life ahead.
Disclaimer: Mutual Fund Investments are subject to market risks. Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing; This blog is written with the sole purpose of educating and in no way intended to be taken as financial advice. This blog should not be construed as an investment or any kind of financial advice. No part of this blog can be used, reproduced, amended or copied without the prior written permission of the author, failure of which may attract appropriate legal action.
This article is written by Taressh Bhatia, who is the partner in SEBI Registered Investment Advisor firm: Advantage Financial Planners LLP.