Holi, the celebration of colors, honors life in its manifestations. Our lives are filled with warmth and enthusiasm thanks to the brilliance of colors, laughter, and love. Holi embodies the accomplishment of good over evil, and it is a day to celebrate. People enjoy delicacies like sweets and thandai in addition to playing with colors. As we are gearing up to celebrate this festival of spring amid adoration, this blog shares some finance lessons that you can associate with this festival. Therefore, hold on to this spirit of Holi and take inspiration to better your financial health.
Let the diverse range of colors inspire you.
Holi, the festival of colors, is also associated with the beginning of the colorful spring season and is so celebrated with color. The variety of colors adds to the celebratory spirit and makes the occasion more pleasurable. Similarly, a balanced approach to accurately diversifying asset classes in an investment portfolio leads to improved yields and mitigates risks. Diversification reduces the risk caused due to volatility associated with various investment classes. For instance, the risks vary, with direct stocks being a high-risk asset and bank fixed deposits being a low-risk asset. Since the financial market is cyclical in nature each asset class performs differently during these cycles with a certain level of risks attached to it; a well-diversified asset strategy hedges your portfolio against financial instability during these market cycles.
Bid your bad debts a farewell
Bonfires are set just before Holi night to symbolize the burning of Holika or the victory of good over evil. You also spring clean your home around this time in preparation for the celebration. Bring the same mentality to managing your finances. Avoid any negative debts and financial entanglements. Debt management is becoming increasingly important given the reality that debt has become a way of life for many of us with Buy Now Pay Later (BNPL), no-cost EMIs, easy consumer finance schemes, and multiple credit cards serving as significant drivers of this demon. Managing your debt entails reorganizing your financial situation and determining what steps you should take to repay your debt swiftly and smartly. Remember that the less debt you have, the happier and wealthy you will be!
Invest, but don’t forget to have fun and play safe!
Ideally, one should choose organic colors that are not harmful to the skin, organs, or well-being and have the most negligible negative impact on health. Holi is all about having a good time. Similarly, it is best to invest in asset classes you understand best. Investors must carry out a risk assessment check essential to understand your capacity to absorb risks. If you still feel overwhelmed, request the support of a financial fiduciary and get a health checkup done. Let them handle your investments and guide you through the array of investment opportunities out there. Wealth creation is a long-term endeavor, don’t let short-term volatility or downturns deter you from investing or staying invested.
Spend quality time with your savings and Investments
Holi is one of those beautiful festivals where you can spend quality time with your family and friends. When it comes to your finances, it’s also a good idea to follow the same rule. Regularly reviewing and rebalancing your portfolio can guarantee that your investments stay aligned with your financial objectives. In the case of financial assets, a ‘invest and watch’ attitude can be risky and erode your capital. Hence a tab on market developments and deep-diving to understanding your holdings is essential to ensure your wealth plan stays aligned with your goals.
Enjoy the sweets.
Aren’t our Indian festivities known for their delectable homemade sweets? From planning to execution, these mouthwatering recipes need hard work and patience. Similarly, your financial and investment objectives require similar due diligence. To reach your intended goals, you must wait patiently and invest diligently. When it comes to long-term investing, investors are frequently sidetracked by market swings and the noise in the market. One should avoid any knee-jerk reactions that could lead to investment blunders.
Finally, be patient and create a solid resilience to market fluctuations. If you make the right financial decisions and use your intelligence, nobody can stop you from indulging in those sweet earnings.