Every year September to December is considered the most awaited festive season. Starting with Navaratri, Dusshera, Diwali to Christmas, these months are packed with huge load of festivals. These days, people are quite busy buying gold, cloths, new car, home, and shopping for other items.
As the festive season comes with the list of expenses, you need to plan the finances wisely. In this blog, we will specify key financial aspects that you must opt during this festive season to have a financially secured future.
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Start Investing Early
‘Do not postpone your investments’. It is advisable to start managing your wealth right from the day you start working and make your money grow. You can start investing with a small amount. You must possess a habit of saving and investing. By start investing early, you can grab the potential to grow your investment exponentially with the help of the power of compounding.
Create an Emergency Corpus
When you start earning, you should start saving. Out of your earnings, you should set aside a liquidity margin. You must inculcate a good financial habit to save first and spend later. Setting aside a certain amount will help you to meet the unforeseen expenses.
For example, if your earning is Rs 35,000 per month and your monthly expenses are around Rs 20,000, you must set aside the balance amount i.e., Rs 15,000. It will help you to create a contingency fund of about Rs 1-2 lakh. This way, even if you have to overspend during the festive season, it will not pinch you that much.
Invest to Fulfill Financial Goals
Investment helps you to fulfill the financial goals by building a corpus with goal-oriented investment. When you are looking to make an investment, you need to identify your financial goals and start investing an amount to build the corpus. In order to fulfill your pre-defined financial goals, you can invest in ULIP plans that will provide you the flexibility to invest in varying fund options that further help to grow your invested money.
Insurance for Financially Secured Future
Getting insured does not mean that you have invested as well. Insurance and Investment are two different products and you can’t mix them up. Insurance for self or family will provide cover against contingencies such as life insurance to provide financial protection against the uncertainties of death. You can buy the term insurance to secure your family’s future in your absence. Buying health insurance helps to cover medical expenses in case you get hospitalized.
Spend Wisely
Due to the easy availability of credit, it becomes easy to spend the money through the credit limit and then pay it off at a later date. You need to be cautious before making purchases, ask yourself whether you really need the item. While purchasing an item, options like EMIs look attractive; however, it adds up to the cost as it is available with a high-interest rate. So, think twice before purchasing with EMIs. Don’t go recklessly with ‘buy today & pay later’ strategy. These days, there is an option of interest-free EMI, but you should assess whether you will be able to pay the installments throughout the entire installment period.