You have probably not spent your whole Diwali bonus on Dhanteras shopping till now; here is one smart way to spend it, instead of going for a splurge, let that annual Diwali bonus become a long-term investment rolling in benefits thereafter.

This windfall income is a chance to take your financial future to a new level. For our generation, stabilising goal is a must. By Saving a fraction of this bonus goes a long way in securing it. With a little planning, you can use it to increase your investments, support future goals, and give yourself a more sound financial cushion. So this Diwali, think about making your bonus work for you, now and in the long term!

Here Are 7 Ways To Plan About Spending Your Bonus Wisely

• Define Your Financial Goals– First things first. Get a clear picture of where you stand financially, including how you spend what future goals you hope to achieve, and any form of debt you wish to pay off. Whether it is to save for that house and car or maybe that one dream trip or retirement, your goal would be the starting point towards your investment journey. Lastly, get rid of that high-interest debt. Take the Diwali bonus money and use a part of it to clear off high-interest debt, such as credit card dues, personal loans, or EMIs. This will save you a lot in interest and keep helping your credit score over time.
• Create An Emergency Fund– Emergency funds can act as a sort of “safety net” and ensure that when you face emergency medical costs, the costs do not really dent your finances. It’s great to set aside at least six months’ worth of expenses and if need be, to top it up, then part of the bonus may be put toward filling this gap.
• Look At Tax Savings Schemes– If you have old tax regimes, this Diwali bonus money can be a great way to invest in tax-saving instruments like ELSS or PPF to minimize your tax liability; in addition to saving some serious tax dollars, long-term returns on these options are pretty good too.
• Use This Bonus Money Partly For Spreading Your Investments– All your savings in one pocket is nothing but a gamble. Make an investment that spreads you across various assets like stocks or fixed deposits and even some gold by using Multi Asset mutual funds. Such kind of an approach will thus balance between growth and stability.
• Invest In Personal Growth– You can generate large returns using a portion of your bonus on personal development. Courses, certifications, or skills training increase one’s earning potential and expose you to more career avenues. Always a good investment in yourself.
• Get Professional Help If You Need It– One of the most common confusions is not having an idea where to begin. This can be clarified quite easily in the right way. You can do this by hiring a financial advisor who best suits your specific goals as well as your budget. It will help you to create a personal investment strategy that aligns with their needs and risk comfort.
• Review And Adjust Your Plan Regularly– Life is dynamic, and so can your goals. Therefore, check up on your investments periodically and make appropriate changes. It keeps you on track and ready for any market and life-altering changes.