Financial Lessons we can Learn from Holi

From smearing each other with colours to enjoying delicacies like gujjias and thandai together, Holi is a fascinating and religious celebration worldwide. The two-day festival begins with Holika Dahan, where people light bonfires and gather around to offer their prayers. On the second day, i.e. Dulhandi, everyone applies colours to each other. It is one of the famous festivals of India. There are several financial investment tips one can learn from the festival of colours.

The day of Holika marks the victory of good over evil. One of the most crucial lessons one can learn from this festival is to kill the burden of bad debt. It can adversely impact your credit score and, more importantly, mess up your finances.

In addition, the offers, discounts or deals on online shopping websites can compel you to overspend. A sure shot way to break the overspending is to develop a habit of saving. Try to create an emergency fund, which should typically have three to six months’ worth of expenses. Also, having a disciplined approach will help you save wisely in a savings account. You can now open an a Digital Savings Account with AU Bank through our Video Banking service and enjoy benefits of savings account.

While you enjoy smearing each other faces with colours, it is necessary to take adequate precautions. This means one needs to be careful as some colours can be hazardous to your skin and overall well-being. Similarly, you need to exercise the same strategy while dealing with finances. If you have invested in mutual funds, stocks, or shares, you need to plan it as per your risk appetite, life goals and investment horizon. Refer to the financial investment tips from experts if required.

The festival of colours is also significant as it marks the onset of the colourful spring season. The diversity of colours adds to the zeal and makes the celebration enjoyable. When it comes to financial investments, it is necessary to have a balanced approach to diversified asset classes. This helps mitigate the risks involved in the process and yield higher returns.

Holi is not just about celebrating with colours; it is also about enjoying desserts and more. The preparation of which takes time. Likewise, investments can help you accumulate considerable wealth; however, this doesn’t occur overnight. Reap the sweetness of investments, i.e., earn better returns by staying invested for a longer-term.

One of the beauties of Holi is it allows you to forget all the differences with your friends/ family and start afresh. Like relationships, one of the investment mistakes is not doing a periodic review. If any stock has caused considerable losses in the past, it’s time to revisit them and evaluate the investments. Know whether they are aligned with your goals or identify if there is a requirement for new stock.

Basic financial investment lessons to follow for a lifetime:

• Limit your borrowing through credit cards or any other modes.
• Keep a tab on your credit card limits.
• Avoid overspending and invest the funds in a savings account or regular fixed deposit.
• Be sure to know the risks associated with different assets before buying.
• Diversify your assets for better returns over long term.
• Check-in periodically and make adjustments.