Slice Of Life

This Diwali, Light Lamps of Financial Freedom!

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Diwali is knocking at our doors and everyone is busy in doing something special. Well that’s not the case with Rishi , he has just received his Diwali Bonus and as always he his confused! This Diwali, he is up for shopping and he is going to spend his entire Diwali bonus on shopping.

Rishi’s wife told him, “Why are you spending so much money on shopping?”

Rishi replied,“Oh come on, Meera! I just got my Diwali bonus. Let me celebrate.”

This attitude is often seen in most of us. We always want to buy new clothes, new jewellery and exchange sweets and gifts in every occasion. Even shopping for Diwali is a big occasion, an event which is planned throughout the year. Shopping for Diwali and gifting presents to loved ones is in itself a reason to get together and have fun. But are these expensive gifts going to really add value in our lives.

Here is a list of some important points which you can use as a gift to your loved one.

1) Financial Enlightenment

Diwali is celebrated on a new-moon day and the lightening of lamps indicates the destruction of darkness and evil. Similarly, one of the key-learning’s is to identify and eliminate the financial mistakes committed in the past such as availing high cost debt, purchase of wrong financial products like endowment plans, ULIPs, etc.

2) Over Spending:-

A celebration is a get-together of family, friends, relatives etc. Diwali, is also an occasion to splurge astonishing amounts of money on sweets, flowers, decoration, celebrations, food, firecrackers etc. Everybody aspires for a good time, and spending for the same is human. But one should never forget that celebrating a festival or an occasion should never be a onetime affair but should be done every year. Meaning although spending now can add to the celebration, it may adversely impact the saving potential thereby resulting in weak financial planning habits which in turn may compromise the financial goals in the future.

The best financial practice on this front is to allocate a budget for non-committed or discretionary expenses such as a festival, occasion or a celebration and comply by the budget. Strict adherence to the budget negates the possibility of overspending thereby enhancing surplus which in turn leads to a higher likelihood of achieving the envisioned Financial Goals like children’s higher education, house purchase, etc.

3) Gift a Financial Plan:

Diwali is the time for reassessment of Money-Management. Hence , it is an ideal time for everybody to consolidate all the aspects of one’s personal finances and the best way to get it done would be under the guidance of a comprehensive financial planner, who would be experienced in carrying out a comprehensive Personal Financial Planning session including cash-flow analysis, identification and prioritization of envisioned financial goals like child future educational expenses , children’s marriage expenses, retirement income needs etc. and finally chalking out a customized best-fit financial planning solution leading to an effective and efficient Personal Finance Management.

Hence, the best way to celebrate Diwali is to gift a PERSONAL FINANCIAL PLAN to your loved ones like family and friends.

A good life Insurance policy not only ensures our peace of mind, but it literally assures us of a better future for our loved ones and the next generation. So, make this Diwali count! Choose the right gift for your family. Think ahead! Let the light of Diwali guide you to make the right decisions and destroy the darkness of doubts.

So, now you know what gift to choose this Diwali. Make the right choice!

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