Money Lessons to be Learnt this Holi

Holi is a festival of colors and it is celebrated with great fervor in different parts of the country. This festival signifies the triumph of good over evil. Beyond the festivities, Holi is a festival of colors that teaches several key money lessons that will help us make a way towards achieving robust financial planning.

Two days of Holi

Festival in India is like a day of enjoyment and it’s more than enjoyment cause every festival gives us lessons of win, win over evil, win over immaturity and win over bad. Look we all want to live a good and healthy life, and with every festival, we just try to keep our life on track. From Holikadahan to the day of Holi every day has his own story, it gives us lessons to deal with different situations and different purposes too.

Holikadahan gives us the lesson of faith, if you have faith in something then you can trust those stuff. This was faith, who gives such kind of strength to Prahalad who sat on the fire and it ends up with Holika Dahan. It was God Vishnu who kept the promise of protecting Prahalad and kept alive in faith. In terms of investment, everyone has his own thesis but if you have faith in something or in someone then you can trust him and you can go with his advice or you can trust your ideas and you just need to implement your ideas.

Day of Holi gives us the lesson about multiple options, there are many types of color are available and you choose the color from options. Like this there are always options are available for investing, and what you choose from options is to make things clear about your investment.

Enjoy Colors of Diversification

We celebrate Holi with diverse colors that we smear on each other’s faces and make the festival enjoyable. Playing Holi with just one color will make the festival dull. The multiple colors that we play in Holi teach the benefits of diversifying the investment portfolio.

Financial experts always suggest, not to put all your eggs in one basket when it comes to investing. The diversification of investment among various asset classes will help in maximizing return and minimizing the risk. The diversification enables the investment portfolio to grow when the market is in a boom state and even when the returns collapse in one sector. Diversification works well towards achieving the financial goal.

Reap the Sweetness of Investments

On Holi, we have a long list of savories like gujiyas, shakkar paare, jalebis, and thandai, etc. that we enjoy a lot on this festival. These special recipes carry some sweet lessons too. We enjoy various sweets in Holi, likewise as we are heading towards the end of the financial year, it’s time to book profit on the investments already made. By making a sweet choice of staying invested for a long-term, you can take advantage of lower volatility and get the better returns as well. If you want to see growth in your investments, it is imperative to go for long term investing.

Get away from the Evil of Bad Debt

We celebrate Holi for the victory of good over evil, by burning ‘Holika. Holika was the sister of the evil king Hiranyakashipu, who made various attempts to kill his son Prahlada, as he was the devotee of Lord Vishnu. Holika sat on a burning pyre with Prahlada with the intention of killing him. Holika was burnt to ashes, but Prahlad escaped unscathed.

Likewise, if you want to flourish in life and accumulate savings that can last through your golden years, then only saving and investing are not enough. You also need to burn out the burden of bad debt as soon as possible. Bad debts are the ones which you can’t afford and it’s not essential, it’s better not to borrow them. Even if you have taken a bad debt, it is advisable to make all efforts to repay your high-cost debt firstly. Opting for a good debt-management strategy also helps in managing your debt, such as choosing the best loan option, pay back the debts from your savings as early as possible, minimize regular debt expense, etc.

Play Safe

The zeal of this festival of colors prevails if you play safe. Some people make use of hazardous colors while playing Holi. However, one should play with organic colors that will have the least effect on health. This way you can make the festival memorable as well.

In the same manner, you should opt for safe investment options that will help you to gain returns with relatively little risk. These types of investments usually bear a low, but assured rate of return. In a safe investment, the chances of losing your invested money are almost negligible and it yields returns as well. You can also invest in stocks, as it offers high return, but carries the investment risk so you need to assess properly before investing. The long-term investment in stocks say for about 10 years tends to become a safe investment option.

Review the Investments

At the festival of Holi, we look forward to sort out all grief and miseries with anyone. We gather with friends and family and celebrate this festival with love and laughter, revive bitter relations and build new relations as well.

Likewise, check the performance of the stocks which were earlier not performing and assess if it makes sense to include in your investment portfolio. You should also consider including new stocks in the portfolio. When it comes to reviewing the investment portfolio, you need to check the return of stocks you are investing in and ascertain whether your investments are providing a minimum rate of return you need every year. You only need to pick a right mix of investments and invest the amount needed to reach the target.

Final Words

While celebrating Holi and having fun, as the financial year is also approaching the end, it’s a good time to assess your financial goals properly and re-build the portfolio to fulfill those goals. Financial lessons learned from this festival may help you build upon your returns. May the colors of Holi make your portfolio flourish in the year ahead. Happy Holi!