Holi & Money Lessons from It
Spring has arrived with the most awaited festival for which we all have waited for. Yes! It’s Holi time. The festival is celebrated across the country with colours of faces and love in the heart. The festival has lots of importance and signifies the triumph of good versus evil.
Holi is celebrated two days, of which the first day is HolikaDahan which is followed by Rangwali Holi on the second day. We all love this festival and celebrate it with full joy, the festival teaches us a lot of lessons, of which we will today discuss some money lessons that you can associate with it.
Enjoy the Colour of Diversification
Would Holi be the same if we play it only with one colour? The diverse colours that we smear on each other make Holi more interesting and enjoyable. The multi-colour Holi teaches us to diversify our investments. Diversifying the investment balance your entire portfolio. Investment not only makes your future secure but also gives us some benefits on taxes. Knowing the benefits and advantages of different sets of investments makes the fruit even tastier. This means the approach of optimally diversifying the asset classes in your investment portfolio could lead to higher returns and diversify the risks involved as well.
Play it Safe to Avoid Risks
The eagerness of Holi wins if one plays it safe. Be it the celebration, or your investments, you should always play safe.
The festival of colours should be played with natural/ organic colours that are not dangerous to our skin, organs or prosperity with the least impact on wellbeing. In a similar manner, it is smarter to invest in those who are less risky and yield more returns. So, playing it safe, invest in those equities or assets which are known to you. If you think you don’t have much information regarding any particular investment, then it is better to avoid such. You can also take the assistance of a financial advisor to minimize the risk. And try to put some of your money into quality stocks as they help you build money.
Banish the Evil of bad Debt
Holi is the celebration of the victory of good over evil. And Burning ‘Holika’. Symbolizes that. To commemorate this victory of the good we light a bonfire each year the day before Holi.
Similarly, bad debts are the evils in your lives. So, to make our life happier it is important to clear those debts first. Debts such as credit cards, recurring personal loans can become bad debts when not managed properly. So, to avoid stress and financial burden lets pledge to clear our bad debts first. Set your financial goals and give priority to investment and saving. The first start with realistic and short term goals then move ahead with long term goals. Start a habit of checking your CIBIL once in six months and take measures to improve it, if it’s low.
Holi brings friends and family together as they all together enjoy the festival of colours. People find time from their busy schedules to reconnect and celebrate togetherness & love. Try to follow the same in your finance. Give some time to build your personal finance portfolio. Get some knowledge of different investments such as SIP of mutual funds, government schemes and asset building to get better results.