Before raiding your Diwali bonus, read this five-step check list
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Financial experts suggest planning your Diwali bonus carefully before spending it on festive purchases.
- ✓Ajay Pruthi said, “Lump sum money excites the brain.
- ✓Give it 30 days and the gap kills most bad decisions free of cost.” Use the money to build emergency funds and clear high-interest debts first.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Livemint
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
“This year, the bonus is not income. Think of it as severance paid early,” said Ajay Pruthi, founder of PLNR and a Sebi-registered investment advisor (RIA). With the uncertainty over layoffs, inflation eating into household savings and flat markets adding to the squeeze, a bonus may have to do more than fund festive purchases this year.
That doesn't mean you cannot enjoy your bonus. Rather, you should work out a plan that covers you against uncertainties before deciding what to purchase.
Pruthi recommends parking the entire amount in a fixed deposit for a month. "Lump sum money excites the brain. Give it 30 days and the gap kills most bad decisions free of cost," he said.
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