Diwali come around once a year & so does the Bonus! This Bonanza should be used wisely & not just misspend it. Your Temptations are knew no bounds with the Festive Season Offers & Discounts. We come across so many festive Discounts and forget the difference between our Needs & Wants…!
There are several better productive ways to use your Bonus:
- Pay off high cost Debt
Credit Cards are the worst forms of debt. Outstanding Credit Card Payments, Car Loan, Personal Loan…just pay it off rather than bragging it! This will bring you a relief psychologically as well as financially.
- Build an Emergency Corpus
Life is never a smooth ride, thus be prepared for all situations. If you do not have an Emergency Fund, you should use your Bonus to build one. This corpus will help you manage sudden, unplanned expenses, medical emergencies. It will help you avoid last minute scrounging for money.
- Plan for Additional Tax Breaks
If you fall in higher Tax Bracket, it is a good time to invest in avenues such as ELSS, NPS and so on to yield Tax Benefits.
- Allocate Money to your Long Term Goals
Retirement is something that none of us can avoid and all of us have to deal with it at some point in our lives. Time catches up with everyone. While an SIP is the right vehicle to save for retirement, a lump sum investment towards retirement can act as a one-time boost towards keeping your retirement goal on track.
Make sure that you end up using your Diwali Bonus prudently!
Wish you a Happy & Safe Diwali!