Diwali is one of the most important religious festivals celebrated in India. It is considered an auspicious event to embark on a new venture, initiative, or travel. It’s that time of year again when you get your Diwali bonus. A sum of 50,000 or 1 lakh may appear insignificant, but with careful planning and administration, you may turn that sum into a financial windfall. Of course, holiday sales and discounts may entice you to go on a shopping frenzy.
While a Diwali Bonus can help to relieve some of the stress, many people are confused about how to put it to good use. The most significant component in helping you plan better is to consider the bonus as a normal income rather than an extra bonus that comes with a strong desire to spend on non-essentials.
Close Your Investment Gaps
We generally put our long-term financial goals on hold until there is a significant increase in salary or existing liabilities are addressed. Long-term goals can include retirement, children’s education, investing in an asset, and so on. When we earn a Diwali bonus, it is always advised that we develop discipline and use it to accomplish such long-term goals.
These lump-sum investments can help to speed goal achievement or cover any gaps. Remember that, while the initial savings amount may be little, it can go a long way toward closing the gap between the required amount and the accumulated amount in the long run. Since last Diwali Bitcoin has given 346.81% returns on investment. So if you have invested INR 1000 in Bitcoin on Diwali last year your investment will be equivalent to INR 4468.10 this Diwali.
Preparing for Diwali Purchases
In general, we use the bonus money for impulsive purchases. We set aside all of our liabilities and need to guarantee that the festival is as enjoyable as possible. We recommend that you begin by distinguishing between your necessities and desires. Do not be swayed simply because there are discounts available. Create a shopping list. Make certain that you only spend money on important gifts or products that you truly require.
Increasing your SIP Investments
Since the market has been pounding the drums in recent weeks, we recommend that you change your focus to a Self Managed Investment Plan or Systematic Crypto Investment Plan in general if you want to shield yourself from market volatility. Not only will you be protected from volatility, but a periodic growth in the quantity of your assets will benefit you in the long run.
Unless you have outstanding bills or debts to clear, investing your Diwali bonus in lucrative investment avenues is always the smartest decision and demonstrates prudent financial preparation.
If you had invested ₹1,000 every month in Ethereum for a year, you would have received ₹29,138 as your current investment value by putting in ₹12,000.
Dividends in Cryptocurrency
Did you know that you may invest in digital money and earn a return on your investment? In the end, there are a variety of virtual currencies that will compensate you for essentially purchasing and holding digital goods. The best feature about these dividend-paying coins is that you don’t have to stake them, which is very useful in a wallet.
COSS, CEFF, NEO, and other coins that pay dividends are just a few examples. Not all of these coins, like conventional equities, are suited for your portfolio; you’ll need to evaluate and select what appears to align with your financial goals.
Diversifying Your Portfolio
With crackers, costumes, and sweets, Diwali is all about adding variety to your celebrations. Similarly, diversifying your portfolio allows you to get the benefits of a wide range of cryptocurrencies. A well-balanced portfolio will bring you the most pleasure because you will be able to profit from both stable coins and other cryptocurrencies.
Avoid building a mountain of debt
Borrowing money for specific goals such as purchasing a car, a home, higher education, or even for personal reasons is not a terrible thing as long as you have the resources to service the debt obligation. Borrow, but do so wisely. Remember that loans and financial commitments must always be treated seriously and repaid on time since late payments can impair your credit rating and capacity to obtain loans in the future.
Among all asset classes, crypto-assets have earned the biggest returns in recent history. As a result, utilize the festive vibes of Diwali to let go of all your problems and worries and make the most of your time with your family, but never let go of the reins on your finances — only then will you be able to ensure that your next year is truly wealthy!