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This Diwali, Declutter More Than Just Your Home — Reset Your Finances Too

You don’t need to spend more to feel festive. Start with a clear budget and stick to it. Choose thoughtful gifts instead of expensive ones

Diwali Financial Reset Photo: AI
Summary
  • If you must borrow, choose short-term, transparent options you can comfortably repay. Avoid high-interest personal loans and credit card debt. Diwali is the perfect time to declutter finances and reset money goals

  • Prioritize clearing high-interest debts and building an emergency fund

  • Set a festive budget—limit spending to 10–15 per cent of monthly income

  • Use bonuses wisely: invest, reduce debt, and avoid credit card overuse

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Every Diwali carries a message of renewal of light conquering chaos. Beyond decluttering our homes, it’s also an ideal time to declutter our finances. Think of it as a personal balance sheet reset. Start by identifying high-interest debts and making them your first priority. “Revisit what truly matters: maybe it’s not the newest phone, but peace of mind. Redirect even a fraction of your festive budget toward clearing equated monthly instalments (EMIs) or starting a systematic investment plan (SIP),” says Mahesh Shukla, founder & CEO, Payme India.

First Things First 

“Organize your financial documents, review insurance policies, and create clear spending priorities. Use the festival as a motivation to create emergency funds and realign investments with your goals for your financial future,” says Abhishek Kumar, a Securities and Exchange Board of India (Sebi)-registered investment advisor (RIA) and founder and chief investment advisor of SahajMoney, a financial planning firm.

Without getting into a high-interest loan, celebrate the festival by setting a festive budget by limiting the budget to 10 per cent to 15 per cent of one’s monthly income and using cash rather than credit cards to maintain spending discipline.

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Start by identifying essential expenses from discretionary ones and allocate a budget for necessities like rent, utilities, and loan payments before considering spending on festive occasions.

“Build a dedicated emergency fund that could cover three to six months of expenses as a backup plan to manage unforeseen spends,” says Kumar.

How To Enjoy Festivities Without Derailing Your Finances

Festivities and financial discipline don’t have to be at odds. The key is mindful joy. Begin with a festive budget, one that’s non-negotiable, and treat it as your financial guardrail. Check your credit score before you start spending; it’s a simple reality check that helps you stay aware of where you stand.

You don’t need to spend more to feel festive. Start with a clear budget and stick to it. Choose thoughtful gifts instead of expensive ones. “If you receive a bonus, use part of it to strengthen your savings or reduce debt. True celebration comes when joy doesn’t leave you with financial stress once the lights fade,” says Shubham Gupta, CFA, co-founder, Growthvine Capital.

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If you must borrow, choose short-term, transparent options you can comfortably repay. Avoid high-interest personal loans and credit card debt.

Light Up Diwali With Mindful Money Habits

Discipline is the unsung companion of abundance. True financial balance isn’t about denial; it’s about direction. Begin by assigning every rupee a purpose: what goes to essentials, what’s saved, and what’s spent on celebration. Automate your savings, however small, and build an emergency fund that quietly grows in the background.

“Before every purchase, take a pause and ask if it’s adding value or just instant gratification. Track your progress mid-season and adjust if needed,” says Shukla.

Track your expenses, plan your investments, and make sure every rupee has a purpose. “When you handle money with awareness, you feel more peaceful, balanced, and confident about the future,” says Gupta.

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