How to put your Diwali bonus to good use?
25 October, 2023
Diwali is one of the biggest festivals in India, and a time for celebration. Typically, it is also a time when most people get a salary bonus from their company.
It is only too easy to get caught up in the festivities around you and not want to miss out on anything. Consequently, it can be very tempting to splurge on stuff you don’t need, especially with all the discounts and offers being offered by different retail stores.
It is important that you control the urge to spend all your money. However, it is also imperative that you budget your bonus in such a way that you enjoy the festive occasion but also set aside some money for the future.
First and foremost, you should look at clearing any debts you may have, as these can be a huge financial burden. Some loans such as those for housing or education may be justified, but Personal Loans and Credit Card debt can drain your finances.
Here are some of the best ways to use your Diwali bonus and make the most out of it:
Create a fund to meet some unforeseen expenditure
Life is unpredictable and you never know what can happen. It is possible that you could lose your job tomorrow, or perhaps someone in your family could get hospitalised. With the cost of living increasing year-on-year, the likelihood of such situations makes it necessary for you to have a contingency or emergency fund ready.
Experts advise keeping aside an amount equivalent to 3-6 months of expenses. There are different ways you can set aside a contingency fund; let’s look at these.
Instead of letting all your money lie in your savings account, you could take advantage of various deposit schemes available from HDFC Bank. Put aside a little money every month in a Recurring Deposit or go for a Fixed Deposit – an easy investment that provides high returns. You can fulfil any urgent financial needs without breaking your Fixed Deposit as you can get up to 90% overdraft on it instantly.
Then there is ‘Dream Deposit’, a new online deposit experience that gives you the flexibility to deposit money whenever it is available. It also allows premature closure of the deposit without any additional charges.
Moreover, if you are not able to put aside some emergency funds, you can take advantage of HDFC Bank festive offers on Loans. Get XPRESS Personal Loan up to ₹40 lakh at interest rates 10.50% p.a.* onwards with quick approval, ensuring that your emergency requirements are met instantly.
Buy term insurance
It is important to have term insurance in your financial portfolio. Having the right kind of insurance not only helps to secure your family’s future but also helps with tax planning. It ensures security and prosperity for you and your family.
Products such as HDFC Life SL ProGrowth Maximiser strives to maximise your returns for ensuring the best for your loved ones. A single-premium Unit Linked Plan with Insurance coverage, it helps you build wealth in the short term. HDFC Bank also has a range of other Life Insurance products to suit individual needs.
Invest for the long term
Ideally, the larger portion of your Diwali bonus should go towards investing for the long term as this provides higher returns and the compounding will work to your advantage. Make a list of all your long-term goals and the risks you are willing to take with your money. You can then make your investments based on your risk appetite.
Invest in a wide range of Mutual Funds with HDFC Bank. You get complete control over your fund investments through NetBanking, and it is tax deductible under Section 80C too. Another option is to invest in a Public Provident Fund (PPF) as it is low-risk and gives good returns. Moreover, it is backed by the government.
You can also invest in equities and derivatives with a unique 4-in-1 investment account. With this account you can create and manage multiple portfolios of all asset classes and instantly trade and monitor the real-time price movement of your favourite stocks through a single window.
You can also choose to invest in Savings Bonds and Capital Gains Bonds, and get tax exemption on capital gains.
Planning for retirement should be another integral part of your long-term investment strategy. Do not neglect to create a retirement kitty for meeting post-retirement income needs; you can invest in various pension plans available, such as HDFC Life Guaranteed Pension Plan, National Pension System, etc.
To know more about retirement investment, click here.
Maximise savings on your Diwali bonus with festive season offerings
Be mindful and careful when you are out for festive shopping. Always make sure to list the items you want to buy and set a budget for each item. Keep an eye on discounts and offers that come in handy during the festive season. HDFC Bank offers discounts and cashback on various products and services. Here is a list of some offers:
Save more with HDFC Bank Cards while visiting your loved ones. Make travel bookings on portals like MakeMyTrip, Goibibo or Yatra and enjoy incredible discount offers*. You can also book your bus tickets with AbhiBus and get 20% off* up to ₹250 with ₹350 AbhiBus Cashback.
Invest in jewellery using HDFC Bank Cards and enjoy up to ₹5,000 savings on GRT Jewellers spends. You can also get 5% instant discount when you shop at Jewelove using your HDFC Bank Cards.*
So make good use of that financial windfall this festive season and secure your future. But don’t forget to indulge in the festivities – after all, Diwali comes only once a year!
* Terms & conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. You are recommended to obtain specific professional advice from before you take any/refrain from any action.