Shopping or Investing: What should you do with your Diwali bonus? | The Financial Express

Shopping or Investing: What should you do with your Diwali bonus?

Diwali is a spending season where the expenses pile up weeks before and spill over onto the day of the festival, which might pinch your pockets and burn a hole in them if not planned and executed carefully.

Diwali, Diwali bonus, Diwali shopping, investing, gold, silver, P2P platforms, P2P lending, alternative investment opportunities
To spare some money for investing, you need to keep your expenditures under check.

People celebrate Diwali by giving various gifts to their near and dear ones. To add to the happiness, employers also provide Diwali bonus, which helps the employees spend more during the festive season.

But should you spend the entire bonus amount on shopping or spare some to invest for future prospects?

“Diwali is a spending season where the expenses pile up weeks before and spill over onto the day of the festival, which might pinch your pockets and burn a hole in them if not planned and executed carefully,” said Anil Pinapala, CEO & Founder of Vivifi India Finance.

To spare some money for investing, you need to keep your expenditures under check.

“Strat by making a checklist of the purchases to be made, revisit the list and tone it down to include only the items that are needed. Adhere to the list and budget you have set. This way you can shield yourself from overspending and overshooting your overall budget,” said Pinapala.

“If you are someone who indulges in impulse shopping, setting aside a portion of money from your festive budget, in advance, can be a great way to fund any rushed eleventh-hour Diwali shopping or miscellaneous expenses,” he added.

However, you may invest a portion of your Diwali bonus in financial products or by purchasing precious metals.

“Purchasing silver and gold items on Dhanteras is a tradition that has been followed for centuries and it is considered an auspicious day to make these purchases. However, very few people take advantage of the chance to invest in financial products that can increase their wealth,” said Rajat Gandhi, Founder & CEO, Faircent.

Apart from traditional investment products, you may also choose an alternative investment option.

“Apart from the traditional investments in gold and silver during Dhanteras, you may also consider Peer-to-Peer or P2P lending, which has emerged as one of the most innovative, and reliable investment options,” said Gandhi.

“For their investors, P2P platforms offer a wide choice of investment plans with varying tenures, providing stable returns free from market volatility. In this process, they enable loans for creditworthy borrowers at reasonable interest rates, where they are selected based on multiple data points and their credit history,” he added.

“Hence, P2P is the way to go if one is looking for alternative investment opportunities,” Gandhi further said.

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First published on: 20-10-2022 at 19:33 IST