The festive season has just about set in, and to receive that little added monetary edge, can just help you make your Diwali a lot sweeter!
While it is indeed heartening to see the extra money in your bank account, many are unsure over how to put it to a good use. The most important factor to help you strategize better is to treat the bonus as a regular income, and not particularly an added bonanza which brings along a strong urge to splurge on non-essentials.
How to Manage Your Diwali Bonus Wisely?
Here are few ideas to spend the bonus amount received during Diwali wisely:
If you are a savvy mutual fund investor and have Systematic Investment Plans (SIPs) active in one or more mutual funds, a Diwali bonus presents the ideal opportunity to increase your contribution to this versatile instrument. Just as you would with a rise in income, a periodic increase in the amount of your investments will serve you good over the long haul.
Unless you have outstanding payments or debts that you need to clear, putting your Diwali bonus into lucrative investment avenues is always the best decision and indicative of smart financial planning.
The festive season will serve as a good time to clear any impending debts you have in your kitty. Start by clearing off your credit card bills, pay personal loan and prepay any part of home loan. Paying off your EMIs and clearing off your debt on time would help you save your interest outgo and keep your CIBIL Score strong.
Generally, we spend the bonus amount on impulsive purchases. We put all our liabilities and needs aside to ensure the enjoyment of the festival is at its peak. We suggest you to start by identifying the difference between your needs and wants. Do not get lured only because there are discount offers available. Make your shopping list. Ensure you spend only on essential gifts or purchase items which you need the most.
It will be only a month or so when most employees will have to provide proof of tax savings to their employer. And those last minute decisions for investments leads to dip into your savings you have earmarked for other goals. If you are not able to do so then tax cut from your salary in these months, which will almost disturb your monthly household expenses. A Diwali bonus can also be used for making tax saving investments to ensure you receive a better post tax income in coming months and keep your finances in manageable limits.
Hence, use the festive vibes of the Diwali to let go off all your worries and stress and make the most of your time with your family, but never let go the rein on your finances – only then can you ensure that your next year is prosperous in a true sense!