Interesting Financial Lessons Inspired by the Festival of Holi
March 23, 2021
Isn’t it interesting that the festival of ‘Holi’ falls in the crucial month of year end financial planning - March. It is the month that marks the end of a financial year and the beginning of a new chapter.
Holi is the festival that celebrates victory of truth over evil and symbolizes a new beginning too. Let’s note down some interesting financial lessons inspired by the festival of Holi.
‘Holika Dahan’ – a pious ritual that symbolizes end of evil.
Holi festivities commence with the burning of the holy fire and devotees performing a ritual to seek blessings from the divine. The fire is symbolic of the end of ‘Holika’ – the sister of King Hiranyakashyap; who fell prey to her own evil conspiracy of killing her nephew Prahlad. With Lord Krishna’s blessings, Prahlad was saved and Holika burnt in her own fire of deceit.
However, there is more to this pious ritual than the story of Holika and Prahlad. Festivals inspire a way of life, and if ‘Holika Dahan’ was to teach us a modern-day lesson; it would definitely be to set fire to some common mistakes we often make related to finances.
Here are the top 5 mistakes that you need to eliminate from your life:
Burn that Bad Debt:
Bad debts are the biggest evil. When credit card dues and recurring Personal Loans are not managed properly, they turn into bad debts. These can greatly ruin your financial planning and CIBIL score in the long term. So, burn those excuses and start saving to make yourself debt-free and eliminate late payment to avoid rising burden of debts.
Set Fire on Habitual Overspending:
A modern-day financial evil is the habit of overspending. Be watchful of your spending habits and curb unnecessary splurging. A sure shot way to break that paycheck-to-paycheck cycle is to inculcate a habit of saving. Try to have a cushion in your savings for up to six months. A disciplined approach and careful investment planning will help you save wisely and proactively.
The ‘Idle Money’ Evil:
It is great to have a steady income. It is even better to save. But if those savings lie idle in your account, it means you are under-utilizing its potential. We have all heard the classic ‘make your money work for you’ advice. Yet, we still ignore the potential of safe investments. So, park your savings in safe investment tools like a Fixed Deposit (FD) or Recurring Deposit (RD) and ensure more returns on your savings. With careful planning with the help of a professional financial advisor, you can also diversify investments into wealth building financial instruments such as Systematic Investment Plan (SIP), Mutual funds, Equity, Bonds etc.
No Goal = No Gain:
It’s good to live carefree. But, when it comes to ensuring a smooth financial progress for you and your family, it is absolutely necessary to follow a ‘goal-based’ strategy. Having a financial goal, such as home ownership, or your child’s college fund, or retirement planning greatly reduces the financial stress and sets you up for a smooth ride over the crucial junctures along your life’s journey.
Subscriptions v/s Savings:
The most common modern day financial monster in our lives are the mounting subscription fees. From gyms, to clubs, to set-top boxes, to web streaming platforms and more; the list of subscription expenses is endless. In such a scenario, it is wise to review your recurring expenses time and again and get rid of unnecessary expenses. A monthly expense tracker can help you track these expenses and greatly contribute to your savings corpus in the long run.
Money management can be intimidating for most of us. However, with prudence and discipline one can easily set a system that works well for us. Holi is a festival that embodies the victory of truth over evil and is celebrated using colours with friends and family. This is an ideal time to dump the habits that contribute to financial evils in your life and embrace a prudent approach to make your future bright and colourful.
So, as you set out to celebrate Holi with your friends and family; don’t forget to set ablaze these financial evils from your life and have a rewarding financial year ahead.
Wishing you a happy and holistic financial journey!
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