Diwali is the time of the year when people usually receive bonuses from offices. There is a usual tendency of spending money on buying expensive gifts and gadgets. The festive sales and discounts further entice people to splurge.
While it is important to spend on festivities to bring in the feel and spirit of the season; it is equally important to put aside a certain amount to secure the future of one’s family with the bonus and/ or cash gifts received from friends and families.
Here are 4 ways of using the Diwali bonus efficiently:
Buy a health insurance policy
COVID-19 has taught each one of us the importance of securing health and the future for the family. Hence, health insurance is a good investment option this Diwali.
According to Balachander Sekhar- CEO, RenewBuy, health insurance, at any given day will help in meeting the rising cost of medical care.
“Without proper health insurance, people might not be even financially prepared to pay the heavy medical bills in case the individual or his/ her family faces any kind of medical emergency. Plans like Family Floater Health Insurance, Personal Accident Insurance, Critical Illness Insurance are some good options that consumers can choose from,” he suggests.
Open a Systematic Investment Plan (SIP)
According to Nitin Shahi, Executive Director of Findoc, investment at a younger age always helps in driving compound returns and creating wealth. Hence, starting a SIP can be a great option as it creates regular saving habits.
SIP allows investors to invest regularly a fixed sum in mutual fund schemes. Under SIP, a fixed amount is deducted from a specified savings account every month towards a mutual fund chosen by the investors.
Invest in Sovereign Gold Bond (SGB)
One of the best options is to invest in Sovereign Gold Bond (SGB). SGB is issued by the government, for which investors get a holding certificate. It comprises government securities denominated in gold wherein investors are required to pay the issue price in cash.
SGB is an effective way to invest in non-physical gold, wherein an investor does not have to worry about the storage of gold as it is in a Demat form.
The subscription of the eighth tranche of the SGB scheme for 2020-21 is open till Friday.
Bonuses could also be used to reduce the debt burden. By reducing debt, one can save more and invest it wisely to improve the quality of life. This may not only help borrowers save on a lot of interest payments but also improve their credit score.
Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.
First Published: IST