Prioritise paying off high-cost debt with Diwali bonus you receive

It would also be prudent to channel some of it into replenishing emergency corpus

For many, the Diwali bonus is like a lifeline that enables them to get their house painted or acquire a high-ticket appliance they have waited to purchase for a long time.  

Says Jay Thacker, member, the Association of Registered Investment Advisors (ARIA): “While the basic instinct is to splurge the bonus amount on a lavish holiday, or wants and desires peripheral to the festivities, a Life Planning approach suggests you should proceed judiciously.”

Here are a few ways you can make the most of these funds:

Repay loans

At the top of your priority list should be reducing your debt,