Top 5 Financial Lessons Learn From Deevali

This Deevali bringing more smiles and fireworks on Dalal street. Markets reaching new heights like Deevali rockets and looking more and more heights in the coming years. Let us celebrate this Deevali with more joy and happiness and learn some financial lessons from this Deevali which would bring more prosperity and colorful in your life.

We always enjoy with fireworks during Deevali. We need to take some risk while handling with fireworks.we need courage to enjoy crackers and fireworks. Brave people enjoy more with fireworks. Similarly, you need to become brave while executing your financial plans. When you are investing in the stock markets (or Mutual funds), you should be brave enough for the ups and downs. You should look for the fundamentals and values.

When it comes to bursting firecrackers on Diwali, parents advise their children to play safe and avoid mishaps. Similarly when you are investing in any investment product, you should be very careful and proper protection should be taken care for your investments. This Deevali is the right time to view the great co-relation between crackers/fireworks and financial planning. Plan all you investments, but don’t forget to buy insurance. It is the Fire extinguisher for your financial goals.

Everybody likes to add variety to their Diwali celebrations with different sweets, firecrackers, clothes etc. Similarly, diversification in your portfolio will let you enjoy different benefits that entail different financial instruments. Doing this also reduces the amount of risk within a portfolio.A balanced portfolio will hold investments with varying risk levels, cutting the overall risk level of similar investments held together.

The next most interesting co-relation of fireworks and the colorful nature of the festival Diwali are being prepared for emergencies. This includes using proper clothing, using long sparklers and incense sticks, avoiding the use of metal and glass containers and using fireworks in open grounds.It is true that emergencies and contingencies are a part of everyone’s life and being a wise and smart financial planner requires not only planning for emergencies, but also for contingencies in the form of death. Finances in the form of term insurances could provide for the stable lifestyle of your loving family on death. Health insurance and critical health insurance plans would provide for health and critical illness coverage and stable lifestyle in such contingencies. Investors could benefit also with investing surplus funds on land in remote places and allow it to appreciate. Creating contingency funds could act as emergency fire extinguishers.

Fire works include noisy as well as less-noisy. Most of us don’t like noisy fireworks and its sound pollution. This applies to noisy stocks also; this noise pollution in the form of everyone talking about hot stocks and best next issue. Some times back, when Reliance Power announces IPO, every one was running for this stock and many stocks were exchanged in grey markets also. Many investors did not look the fundamentals of this stock and finally they burnt their hands. So, Don’t buy noisy stocks, or the next hot issue that everyone is talking about. It is most likely over-priced.

Make your financial plans wisely and make this Diwali more fruitful. Wishing you a Happy and Safe Deevali.

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