Diwali 2025: Brighten-Up Your Family’s Financial Future With Long-Term Planning Tips

Diwali, the festival of lights, is not only a time for celebrations with family but also a time to review and strengthen financial planning for the family. Amid economic uncertainties, prioritising financial security is essential while indulging in festive joy. However, simply saving money and keeping it or investing it anywhere is not financial planning. Experts suggest it should start with setting a goal and then accordingly plan investments.

Here are the key rules to start planning finances:

Set A Clear Budget:

The first step is to set a clear budget for Diwali Expenses. It is crucial or there are chances to feel fear of missing out (FOMO) and give in to the appealing offers and spend more than required.

Prioritise Debt Clearance:

The next step is to pay off the debt, if any, to prevent interest accumulation. It would free up more money for savings. While saying this, setting up an emergency fund cannot be ignored.

Investment Diversification:

Investment must be diversified and also revisited regularly. Diwali could be an ideal time to review and rebalance your portfolio, as this is also a time when people tend to buy precious metals. India is one of the top consumers of gold in the world. But one should balance the investment across gold and silver, fixed deposits, equities, and long-term retirement schemes, like the National Pension System (NPS), public provident fund (PPF), among others.

Saurav Ghosh, Co-founder, Jiraaf, a bon-investment platform, says, “Next, allocate your savings across diversified asset classes such as equity mutual funds, corporate bonds, and precious metals, depending on your goals and time horizon. To optimize savings, keep separate accounts for expenses and investments.”

Don’t Overlook Insurance:

Finally, don’t overlook insurance. It is the first and foremost component of financial planning. Ensure adequate health and life coverage to protect against sudden financial shock. It is crucial to buy enough insurance, or it can make a huge hole in your pocket.

Start Early:

Although young people may not feel like saving and want to spend more around Diwali, Experts suggest starting early. Ghosh says, “There’s no fixed ideal age to begin investing—the earlier you start, the better. Beginning early allows the power of compounding to multiply even modest savings into significant wealth over time. A few years’ delay can make a meaningful difference to your final corpus.”

“Young earners can follow the 50-30-20 rule—50 per cent for needs, 30 per cent for wants, and 20 per cent for savings. To stay consistent, “pay yourself first” by transferring 20 per cent of your income into your investment account before spending.”

Investment is different than savings. And one should start investing for long-term early in their career to reap the best of compounding benefits. A few days' delay can make a huge difference in the corpus accumulation. So, plan, review, and rebalance the portfolio this Diwali while enjoying the family time.