Diwali is just around the corner and people are busy preparing for the festival of light, hope and prosperity. When it comes to Diwali, it means spending lavishly, burning firecrackers, buying the latest gadget or car, purchasing gold and the list goes on. With people busy planning for Diwali, this is that time of year when employees are also excited about the bonus amount they will receive during the festive season. But most of us don’t have a clear strategy on how to use this money and hence end up splurging on buying discounted products during the festive sales.
While it is hard to resist the offers during the festive season, but if you think sincerely, you can turn the bonus into a financial boon. While it’s alright to allow yourself some indulgence, it’s important to strike a balance between spending these funds and allocating them for other financial objectives.
Here are a few ways in which you can invest your Diwali bonus:
Buying gold on Dhanteras is one traditional favourite at this time of the year, which is considered to be an auspicious occasion to buy the precious metal. However, the buyers are often driven by sentiments rather than investment awareness. Apart from the obvious the problem of storage, gold in physical form is not liquid. Due to several costs attached to jewellery purchase, such as wastage and making charges, you don’t get the true value of the metal while selling.
If your current income is sufficient to accomplish all your requirements in the short and medium-term, you can use the Diwali bonus to increase your corpus for retirement. Instruments such as the Mutual Funds and PPF are ideal for building a retirement fund.
Diwali, the festival of light, is considered to be an auspicious period to buy property. During this festive season, those who are planning to buy a house normally try their best and take the plunge. As it happens, investments in real estate hardly go wrong, as they invariably give good returns. And, this reinforces people’s belief that Diwali is an auspicious period to make an investment in real estate.
Invest in zero risk but good-return investment products:
Not everyone likes taking a risk with their hard-earned money. And it is perfectly fine. After all, it’s your money. For such safe investors, investing in no risk and high-return investment products is recommended. And this includes Public Provident Fund, Sukanya Samriddhi Account, and National Savings Certificate.
Pay Off Debts:
You could also use the money to clear off an outstanding loan amount. If you have debts with high-interest rate such as credit card debts and are unable to source funds to clear them off, put your bonus money to good use. Paying off your EMIs and clearing off your debt on time would help you save your interest outgo.