Smart Ways to use Diwali Bonus | How to use Diwali Bonus?
Therefore, this Diwali use your Diwali bonus amount to fulfill your goals which you have set for yourself
this year. If you have not planned till now then here are some ideas where you can use your Diwali bonus
amount judiciously.
Ways to use Diwali Bonus
Pay Off Your Loans
If you have some
high-cost debt such as credit cards or personal
loans then pay off these loans first. If cannot pay them in full, at least make
sure you pay part payment of these loans. By paying these types of loans you
are reducing your financial burden. So make sure when you receive your Diwali
bonus, it should be your first priority to pay off your high-cost debt.
Create an Emergency Fund
It is always
advisable to have at least 6 months expenses set aside for any emergency needs.
Often people are not able to create an emergency fund from their regular salary
due to some other commitments like EMIs, insurance premiums, SIPs etc. Diwali
bonus can be a good source for creating an emergency fund if you have not
created it till now.
Buy Insurance
Life is
unpredictable and nobody knows what will happen with him/her in the next moment
of time. Therefore, it is always advisable to buy life insurance in advance. Life insurance ensures that your family will get financial support when you are no
longer around to care for them. If you have not taken the insurance like health
insurance and life insurance. Then with this Diwali bonus, you can buy an insurance plan with yearly mode payable at
the time of Diwali. This will be the best gift for your family.
Plan for Tax Saving
In the last
month of the financial year, mostly all
of the employees will have to submit proof of tax saving to their HR
department/employer. You can invest this Diwali bonus money in some tax saving instruments which are eligible under 80C of income tax act. This will save you
from making wrong decision for tax saving options in the last moment.
Investments of Rs. 1.5 lakh is allowed to be exempt from taxable income under
section 80C of income tax act.
Long-Term Investment
You can use your
Diwali bonus to plan your long-term investment if you have not planned till now due to some other commitments. You
can allocate bonus money to your long-term goals such as the purchase of a house,
children higher education, and
retirement. Long-term investments help in
accumulation of the required corpus.
Use it as Down Payments
Most of the
employees have a wish list always ready before Diwali. If for a long time you
were also wishing that you could buy a car, a home or some expensive jewelry. Then go ahead and use this Diwali
bonus as down payments for these purchases. Buying a house or gold are always
good investment options.
Diwali Shopping
There is nothing
wrong in shopping for self and for family members. It could be shopping for jewelry, purchasing a consumer durable like a new refrigerator, TV, washing machine etc or
even shopping for clothes. But always differentiate between your wants and
needs before you go out for shopping. Make sure you spend your Diwali bonus amount
only on essential gifts or purchase items which you need the most.
Hope the above
article will help you to use your Diwali bonus judiciously.
Note: This post was originally published in November 2015 and has been completely updated for accuracy and comprehensiveness.
Note: This post was originally published in November 2015 and has been completely updated for accuracy and comprehensiveness.
Also read: How to invest in mutual funds online?
Also read: SBI PPF Account - How to open PPF account in SBI?
You may also like to read: Small Saving Schemes
You may also like to read: Small Saving Schemes
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Smart Ways to use Diwali Bonus, How to use Diwali Bonus
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