The much-awaited festive season is upon us! Yet again, many of you would be planning your annual whitewashing and shopping with your Diwali bonus. While some of you know the exact amount that you’ll receive this year, the rest might be pleasantly surprised.
Well, whatever the case may be, instead of spending your Diwali bonus haphazardly, how about you structure it for some real gains?
Here are four super smart ways to spend your Diwali bonus.
#1 Pay off any outstanding debt
A little extra income goes a long way in paying off pre-existing debts. So, use your Diwali bonus for closing pending bills or loans. Even if you can’t fully pay them off, make partial payments. This will reduce the overall interest you’re likely incurring on loan(s).
Also, prioritise the loan you want to pay first. For instance, always pay your credit card bills first as they accrue very high-interest rates if you default.
Doing so will not only relieve you from the debt burden, but it also improves your CIBIL score. Clearly, a win for everyone!
#2 Protect your family through life insurance
Life is riddled with uncertainties, no matter how hard we try to plan events. That’s why preparing for emergencies is never not a bad idea. Therefore, investing in insurance makes absolute sense.
Using your Diwali bonus to pay off at least an entire year’s premium secures the ones you love and want cared for even if you’re not there. So, make sure to save a small chunk to purchase life insurance this Diwali.
Additional Read: How Mutual Fund Investments Are Going the Digital Way
#3 Pamper yourself and your family
While it’s great to spend and invest your Diwali bonus in serious long-term instruments, you must also have some fun with it. So, go Diwali shopping along with your family and friends, take a photography class, travel to an exotic destination, eat at the best restaurants, and much more.
Indulging yourself every once in a while, only boosts your happiness and de-stresses you. Hence, spare a chunk of your bonus to pursue your passions, albeit in moderation.
#4 Fill up any investment gaps
Once you’re done with the above three, invest whatever bonus is left in diverse financial instruments. For example, if you’ve only been investing in long-term instruments that lock in your money like RDs, try something different, like mutual funds or SIPs.
Given the diversity of mutual funds available these days, all you need to do is study the market trends and choose the right partner to apply with.
Additional Read: Are Your Investment Actions Healthy or Toxic for You?
Remember, it doesn’t matter whether your Diwali bonus is big or small; what matters is how you use it. Utilising your bonus with a bit of planning can not only bring you joy but also help you grow your wealth in the long term.
Have you been saving up your Diwali bonuses for a big purchase? Is the big-ticket purchase buying your own home or taking a world tour? Well, then supplement your bonus with the right loan from Tata Capital Moneyfy app. We have a hassle-free online loan application process to help you get a loan at competitive interest rates and flexible repayment tenures.
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