Outlook Money
A Diwali bonus means extra money in your hands, and it’s tempting to spend it all during the festive season. But it’s important to take care of your finances too while you enjoy Diwali.
Diwali shopping can be exciting, but unexpected expenses can come up anytime. Keep a part of your bonus in an emergency fund to cover at least three months of essential expenses.
Planning a big festive purchase? First, check your credit card bills and outstanding loans. Using your Diwali bonus to clear high interest debt can save you money on future interest payments.
You can use part of your festive bonus to work towards bigger goals, such as retirement or your child’s education. Choose investments based on your goals, risk tolerance and time horizon.
Want to get your home ready for Diwali? Use some of your bonus for necessary repairs or improvements. Just plan the costs beforehand and leave room for unexpected expenses.
You don’t have to choose between celebrating Diwali and saving money. Set aside a budget for gifts, shopping and festivities, then use what’s left for debt repayment or investments.
Before spending your festive bonus, take a quick look at your savings, debts and upcoming expenses. Once your priorities are clear, you can celebrate Diwali without putting unnecessary pressure on your budget.