New Delhi12 minutes ago
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There are only 15 days left for Diwali. Every year most companies give bonuses to their employees on Diwali. This bonus is also a gift of happiness for us, as well as a chance to improve our financial condition.
However, it often happens that as soon as the bonus comes in hand, we spend money in shopping, buying new things and fulfilling hobbies. In such a situation, it is important to know what can be the smart use of this money.
In this story, we will tell some tips with the help of experts, so that your Diwali bonus is happy for a long time.
Divide smartly: Create the right balance
The best way to spend the bonus is to divide it into two parts – one part to celebrate the festival and the other for future needs. According to Scripbox founder and CEO Atul Shingle, spend 50% of the bonus on festival and lifestyle and keep the remaining 50% for long-term goals like mutual funds, retirement or debt.
If you have more responsibilities, you can divide into three parts –
- For needs- 30%
- For desires- 30%
- To make wealth- 40%
Everyone’s method may be different. Finovat’s co-founder and CEO Nehal says fat, ‘Divide your bonus according to the stage of your life. If you have high-interest debt on you, then put 60-70% bonus to repay it. ‘ Those who have financial stability, they can increase the share of spending in a little festival, but first meet the necessary expenses, then on celebrating the rest of the festival.
Create budget for celebration
It is necessary to create the right budget for the happiness of the festival not to change in financial tension. Shingle says, “First guess how much will be spent in the festival – gifts, walking, decorations, travels and religious rituals.” Try this expense mixed with your bonus and regular income. With this you will get a fixed budget and you can give your goals priority by putting the rest of the money in the first investment.
Avoid mistakes, celebrate smartly
There is always a risk of overseasing in festivals. Nehal says, ‘Do not blow the bonus as’ extra ‘money.’ Shopping by taking a credit card or personal loan, avoid exactly, because they have very high interest rates and can trap in a debt trap.
Follow creative methods for celebration without debt. Nehal says, “Put Potalk Gatherings, make DIY decorations or take advantage of early-bird travel deals.” According to Shingle, ‘prepare shopping list in advance and stay on it. Check prices in online and offline stores, use discounts and cashback offers.
Pay high-interest loans
Put some part of your bonus to repay credit card bills, personal loans or any high-interest debt. This will save your money in future. Shingle recommends, ‘First of all make a list of your debt, repay the most interest debt first.
Even partial payment can reduce loan duration and total interest. ‘ If you have expensive debt, it should be priority to repay it before new investment.
Investment strategy
Options for investment depend on your needs. Nehal says, ‘Invest in liquid funds or recurring deposits for a period of less than 3 years. Choose diversified equity mutual funds or index funds for long-term from medium.
You can also add sovereign gold bonds or gold etf for diversification to your portfolio. It is important that you make balance in returns and liquidity so that your short-term money does not come in risk.
Long-Term Approach for Financial Fitness
Diwali bonus is a chance to complete your financial goals faster. Nehal says, ‘The bonus can either end in a week’s shopping or work for you for years. Consider it a booster of financial fitness. ‘
Shingle suggestions, “Do include the family in the process of sharing the bonus so that everyone understands the balance between fun and discipline.” In this way, with wise spending and smart investment, your Diwali bonus will not only make the festival special, but can also be useful to improve your future.
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