How to plan your finances for Dhanteras?

By blending tradition with smart financial planning, you can celebrate this auspicious occasion and strengthen your financial future

As Dhanteras approaches, marking the beginning of the Diwali festival, people are gearing up for new purchases and investments. However, it is crucial to approach this celebration with a well-thought-out financial strategy. 

 

“Dhanteras, a celebration of wealth and prosperity, is an ideal time to revisit your financial plans. Traditionally, gold has been the go-to investment during this festive occasion, but we are seeing a shift in preferences. Today, around 14 per cent of Indian household assets are allocated to equity, up from 10 per cent in 2012, while deposits still make up 34 per cent. As we enter this auspicious period, it is essential to balance your portfolio by including both growth and defensive assets,” Chethan Shenoy, Director & Head - Product & Research, Anand Rathi Wealth Limited

 

 

“Investors can also see Dhanteras as an auspicious day to start investing for your future. One can look to invest in multi asset allocation funds that give you exposure across asset classes with minimum 10 per cent in gold or silver. A multi asset fund allocates money in equity, debt & money market instruments, Gold ETFs, Silver ETFs, and is aimed at long term capital appreciation,” Shrinivas Khanolkar, Head – Products, Marketing & Corporate Communication at Mirae Asset Investment Managers

 

Here is how you can plan your finances for Dhanteras while balancing tradition with fiscal responsibility.

 

Setting a budget

 

The first step in financial planning for Dhanteras is to set clear financial goals. Categorising these goals into short-term, medium-term, and long-term can provide a structured approach. 

 

Prioritising purchases

 

While it is tempting to indulge in various purchases, prioritising is key. Consider what is truly necessary or holds long-term value.

 

Exploring alternative investments

 

Dhanteras can be an excellent time to diversify your investment portfolio. Mutual funds, stocks, or even digital gold are worth considering.

 

Smart shopping strategies

 

If you are planning to make significant purchases like appliances or electronics, do your research. Many retailers offer Dhanteras discounts, but it is crucial to compare prices across platforms.

 

Explore new gold options

 

Modern investors might consider digital gold options or Sovereign Gold Bonds (SGBs) for better returns and liquidity. 

 

Real estate considerations 

 

The festival season often brings attractive deals in real estate. Buyers should consider leveraging this opportunity to invest in properties that promise appreciation and rental income over time. 

 

Seeking professional guidance 

 

Navigating financial decisions can be complex, especially during festive seasons when emotions run high. Consulting with a financial advisor can provide clarity.