Diwali Shopping or Investment – What to do?

"Whoever said money can't buy happiness simply didn't know where to go shopping"

The lockdown has turned out to be an inflection point for E-commerce businesses in India. Social distancing has not only acquainted us all with the convenience of online shopping but has been a tool to fight depression, loneliness, and anxiety induced by quarantine. Let us all admit it - looking up and online purchasing stuff we love has elevated our moods during these challenging times.

Also, Diwali, the biggest and grandest festival in India is around the corner. Most major e-tailers in India will launch their biggest sale of the year around this time, tempting us to add more and more items to our cart. At GlideInvest, your financial health and freedom is our goal. While major online businesses will make their big billions during this season, we want to see you take a step towards your millions too as you strike the right balance between shopping and investing.

Allow us to tell you why you should not only spend but also invest this Diwali:

• If Rihana went broke, so can you!
  
  Legendary investor Warren Buffet once said, those who spend on stuff they don't need end up selling stuff they need.
  
  Global Pop sensation Rihaana almost went broke towards the end of 2009 and sued her then financial advisor for giving her "bad advice" which included a go-ahead to purchase a Beverly Hill mansion which she eventually sold at a loss of $2 Million Dollars.
  
  For many people, money seems to flow out almost as soon as it comes in and they keep wondering why. The good news is that by cultivating the right attitude towards money, this can be easily fixed. Even Rihaana eventually bounced back from her financial woes and is now worth a staggering $1.7 Billion dollars!
  
• Add Mutual funds to your cart this Diwali
  
  It is said that during Diwali, the Goddess of wealth Lakshmi visits every household and we welcome her by performing Lakshmi Puja. As important it is to welcome Goddess Lakshmi to our house, equally important is keeping her presence and not letting her leave us. In order to continue to revel in her blessings, it is important we not only spend but also invest. By investing and growing our wealth, it is said Goddess Lakshmi feels nurtured and cared for and continues to be with us.
  
  While you add your favourite sweets, new clothes, and gift items for near and dear ones this Diwali, don’t forget to add Mutual funds to your shopping list. If you are starting new, investing in Mutual Funds is one of the best financial decisions you can make. To know more about Mutual funds and why they should be your top investment destination this Diwali, do read our blog here.
  
• A little less shopping every month can make you a millionaire
  
  As soon as the salary hits our account and we receive the glorious SMS notifying us of the credit, what do we do next? We open our favourite shopping cart, move items that we have long kept our eyes on to our shopping cart, and patiently wait for them to be shipped to us. What if we told you, by removing one or two items from your cart every month can make you a millionaire? We aren’t kidding.
  
  Allow us to explain. Let's say you are in your 20s and if you invest as little as Rs 2000 in our app every month - that's basically the cost of a pair of shoes or a trouser or a visit to your favourite restaurant. With a CAGR of 12% you can make 6 million Rupees even before your retirement.
  
  To know more about the magic of compound interest check our blog here.
  
• 50:30:30 Budgeting rule
  
  If you don’t know when to stop shopping, a simple and powerful budgeting tip is to follow the 50:30:20 rule. As per this rule:
  - 50% of your monthly income should be spent on things that are important and necessary. This includes your groceries and other expense to run the house, EMIs, education fees etc
  - 30% of your monthly income should be spent on things that are important but not necessary. Like your Netflix subscription, a visit to the restaurant etc
  - 20% of your monthly income should be saved towards a mutual fund, emergency funds and /or any other form of saving/investment you deem best. This money will come in very handy in case of an unforeseen medical expense or to sustain yourself in case of an unfortunate event such as you getting laid off from your job.

The next time salary hits your account, remember to Save first, Invest, and then Spend and not the other way round.

With this simple financial advice, we would like to wish you a very happy and prosperous Diwali. May Goddess Lakshmi grace your life with her presence throughout!