Financial advisors are encouraging individuals to use the Diwali festival period as an opportunity to conduct a thorough review of their financial portfolios. This traditional time of celebration and new beginnings is seen as an ideal moment to reassess both investments and liabilities.
The recommendation comes as many families are already cleaning and organizing their homes for Diwali, with financial experts suggesting that similar attention should be given to personal finances. A comprehensive financial review during this festive season could help individuals start the new year on stronger financial footing.
Portfolio Cleanup Recommendations
Financial planners suggest a two-step approach to this Diwali financial review. First, individuals should examine their current investment portfolio and outstanding liabilities to identify and remove unnecessary or underperforming elements. This might include high-interest debt, dormant accounts, or investments that no longer align with financial goals.
“Just as we clean our homes for Diwali, our financial house needs regular maintenance too,” said one financial advisor who specializes in personal finance. This festival provides a natural checkpoint for many families to assess what’s working and what isn’t in their financial lives.”
The second step involves identifying gaps in the financial portfolio and adding necessary components. This could mean increasing emergency savings, starting retirement contributions, or obtaining adequate insurance coverage that may have been overlooked.
Timing Aligns With Year-End Planning
The timing of Diwali makes it particularly suitable for a financial review, as it often falls near the end of the calendar year, when many people begin year-end tax planning and setting goals for the upcoming year.
Financial institutions report seeing an uptick in investment activity around Diwali, with many clients using the occasion to make new investments or restructure existing ones. Some banks and investment firms have even created special Diwali-themed financial planning services to capitalize on this trend.
“The festive period often brings bonus payments and gifts that can be strategically invested rather than spent on impulse purchases,” noted a senior banking executive.
Practical Steps for Implementation
For those looking to conduct a Diwali financial review, experts recommend these specific actions:
- Create a complete list of all investments, savings accounts, and insurance policies
- Document all outstanding loans and credit card balances
- Calculate net worth by subtracting liabilities from assets
- Identify and close dormant accounts that may be incurring fees
- Consolidate multiple investments of the same type for easier management
Financial planners also suggest involving family members in this review process, as Diwali brings families together and provides an opportunity for critical financial discussions that might otherwise be postponed.
The practice of financial review during Diwali connects modern financial planning with the festival’s traditional significance, which celebrates new beginnings and prosperity. By clearing out financial clutter and strengthening their economic foundation, individuals can honor the spirit of Diwali while taking practical steps toward greater financial security.
