Financial Planning Tips For This Diwali

Along with the celebration of Diwali, everyone also needs to have perfect financial planning, budgeting, investing and learning all the necessary lessons related to finance.

Diwali marks the beginning of the financial new year for many Indian business owners. Celebrating new beginnings, Diwali also provides an opportunity to learn some important financial lessons that can be put into action to improve financial well-being.

1. Start by enhancing your financial knowledge

Most of us suffer from low returns on our investments, fall into debt traps, lack funds, and many more because we are not taught about managing personal finances. So, you must get the right knowledge to manage your finances.

To accumulate wealth over time, You need a source of income to meet your expenses and debts. Once you meet your basic expenses, start saving and invest it wisely. With proper budgeting, you can control unnecessary spending by identifying areas of high spending, and after evaluating cutting unnecessary spending

2. Set goals for your money

Goal setting helps people to get a brighter future. Each one of us should set short and long-term financial goals, Pay off our debts, & Plan for retirement.

Planning is important in all aspects of life. As for money, this is quite important. A person can set financial goals based on three types: short, medium and long-term goals. Such planning will contribute to your financial growth.

We all need emergency funds because our lives are full of uncertainty. Not only does it help in times of financial hardship during emergencies, but it also saves us from stress caused by financial crises.‍

‍3. Keep your credit cards under control

You should control the spending of your credit card.

• You can remember to pay your credit card bills on time by allowing automatic payments from your bank account.

• Pay your bill ASAP.
• Settle the payment of your credit card during the interest-free period to minimise your overall repayment.

4. Reduce loan burden 

You should review your loans at regular intervals to ensure that you only have loans that will increase your wealth in the future. Before Diwali, pay off credit card fees and personal loans. You can increase your credit score by paying off unsecured loans because there are high-interest rates on these loans, and if you are delayed in repayment, it leads to a loss of credit. 

5. Write Your Will

If you haven't written your Will yet, now it's a good time to make your Will. Most of us don't write Wills because we have appointed a nominee. A nominee can be very helpful, but it is also recommended that you make a Will. It allows you to have control over what happens to your investment after your death. Also, by making a Will, You can manage your estate, Reduce stress for your loved ones by eliminating the chances of disputes in your family, and Make provisions for your children and safeguard their future if something happens to you.

‍AasaanWill makes it easy for you to write a Will that is legally vetted, valid and affordable from the comfort of your home.

Conclusion

Lighting and exploding crackers are associated with Diwali. All these celebratory sounds are powerful enough to remove your negativity. The same applies in the field of investment. All unwanted misconceptions, rumours, myths and half-knowledge should be avoided. Your financial decisions should be based on research and analysis, not on all the noise. Instead of making impulsive decisions, you should seek professional help.

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