The most awaited festival of the year, 'Diwali' is just round the corner. Each year the festival is looked forward to and celebrated with enthusiasm & with the hope of lightening our lives. It's the time to exchange gifts, meet friends and family and celebrate happiness. The festival celebrates triumph of Lord Rama over Ravana, Good over Evil, Faith over Fear and Knowledge over Ignorance.

On this day, Hindus worship Goddess Lakshmi, who is a symbol of wealth and prosperity. It is a belief that Goddess Lakshmi visits our homes and showers blessings of wealth on us.

Following are some key points which we can learn from the festival, and bring prosperity into our lives by incorporating them into our saving and spending pattern:

Cleanliness: We start cleaning our houses weeks before Diwali, and we eagerly wait for the day when the Goddess will come and bless us. It is said that the deity visits and disburses wealth in neat and clean homes only. You must have seen the Swachh Bharat Ad featuring Kangana Ranaut as Goddess Lakshmi, who disappears from photo frames kept in places of worship, of people who litter. We believe that the deity will visit our homes only if we keep it clean.

Just like we clean the house for Goddess Lakshmi to grace our dwelling with her auspicious steps, we must review and clean our Portfolios for Goddess Lakshmi to come & grace our Portfolio and multiply our long term wealth. So, as they say, Diwali is the victory of good over evil. So you must carefully review your portfolio, clean it; remove the evil, i.e the products which are non performers and are not expected to perform in the future and keep the good ones.

Mahurat: According to the Hindu mythology, Diwali time is a good mahurat, i.e. the time when the stars are on our side and anything initiated during this time, will be a grand success. So, if you haven't started investing yet, start now. It is the time when the stars are on your side, you must start investing to build your long term wealth. And if you are an experienced investor, it's time you must review your portfolio, set newer goals and make new investments. This Mahurat time is exploited by people by trying their luck in lotteries, gambling, card games and other speculative activities. A special 'Mahurat Trading' session is conducted on major Indian stock exchanges on Diwali, and it witnesses humongous participation each year. But you must remember that luck cannot be trusted and hence you should focus on long term wealth creation. Yet if you wish to keep the tradition going, and you decide to take the plunge, play with small amounts so even if you lose, the spirit of the festival is kept intact.

Dhanteras: Dhan = Money and Teras = 13^th day of Kartik month. People purchase gold, silver, electronics and other assets on this day because it is trusted to be lucky and it is believed that wealth will keep coming into the house for the following year, just like this day. Every Dhanteras, we purchase gold jewelery, pay huge making charges, only to dump it in the lockers of our banks and then incur wastage charges, in case we sell the gold subsequently. On this Diwali, let's go for intelligent gold, go for dematerialised gold if you "insist" in investing in gold. Gold Funds/Gold ETFs are better options as they come with no physical risks, no making charges and it is easier & cheaper to liquidate at any time. So capitalize on the luck of this auspicious day by investing in "non-physical gold".

E-commerce sale: Diwali brings in happiness, but it is a costly affair. We give gifts, we spend on sweets, crackers, puja, new clothes for everyone in the family, etc., all these factors contribute to loss of money. To make matters worse, the latest addition to Diwali rituals is the online shopping festivals. The e-commerce giants try to lure us with mouth watering offers and discounts, and we end up overspending, buying stuff which we don't even require and disturbing our budget. So, our advise to the readers is Control your emotions and don't get carried away by the discounts. You can even cut down on crackers, gifts and other Diwali expenses, and bring the money to more productive use by investing. Remember, 'A penny saved is a penny earned'

Diwali bonus: Some of us get our annual bonus during Diwali time. This bonus is intended to enable us provide for the extra expenses that we incur for the festival. The amount is generally much more than the extra expenses, and since we have more money, we tend to spend more money. We get this bonus once a year, and this is a reward for our hardwork. The money can be blown in a day or can be saved & invested for your future. It is a better option to save for your future and not waste your hard earned bonus in extra crackers during Diwali. You can use this bonus to repay your old debt, or make fresh investments for your future goals.

So, the bottomline is, this Diwali keep your emotions under control, do not overspend and invest for yourself, for your future. Be safe while playing crackers, remember that such auspicious occasions don't come everyday, and you must utilize the opportunity by wisely managing your expenses and investments.

Have a Happy and Prosperous Diwali!

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Your starting point is the one where you are standing today. You know your destination but you do not know the route. You have to look for someone who can guide you so that you reach your ultimate goal. The guide is your financial advisor, who will help you define a road which you shall follow in order to achieve your target. The end of the pathway is your ultimate target, which in most cases is a happy retirement life. Your financial advisor will devise the road for you according to your goals, your demographics, your income, assets and liabilities. He will give you solutions for various hindrances that you might face while steering on the path, and he will also guide you on crossing the periodical laps i.e the points where you will achieve your short term and long term goals.

One the road to success, you'll confront a number of challenges and opportunities, your journey cas be characterised as:

• The road is long: The road of your life in very long. Keep calm and carry on. Your ultimate destination i.e your biggest life goal is yet too far, so you have to be energetic and follow the path because there is a lot lying ahead. At any point, you must not give up and stop following the investment path because it is the only way you can achieve your mission.
• The road will have pits: The investment path is simple, but not easy. There will be bad times and your investments might not fare well, at this point you must not panic, you must have the courage and confidence on the road that you have chosen. The strength of your portfolio will take you out of the pit to help you move on.
• There will be laps: The laps are the points of actualization of your short and long term goals. Your investment plan will comprise specific investments for each of these laps. These laps are predefined, you know the first lap of buying a car will come after three years, the next lap of buying a house will come after another three years. So, whenever you are near a lap, let's say buying a car, so your SIP for 5 years would be there to fund the car purchase.
• The road will have bumps: While there are certain goals to be achieved, there are uncertain emergencies as well. A solid investment plan will provide for theses bumps also. A sudden job loss can cause a lot of financial disturbance, yet a preplanned provision for contingency will help you from falling, though there will be a little mental instability, but your investments will take care of your expenses till your next job. Though the bumps might disturb the stability of your investments, yet you'll cross it because of the strength of your portfolio and your willpower.
• You'll see shortcuts: On the path of investments, you'll come across various diversions and shortcuts, which might promise to help you achieve your target quickly, but you must not pay heed to such shortcuts and keep moving on the set path. You might come across a flyer which says invest Rs 1 Lac and double your money in six months. Don't fall prey to such claims, because the shortcut might have a dead end ahead.

• A bend in the road is not the end of the road: The investment path that you chose, might require you to now take a turn. This may happen if it is best to modify your portfolio in order to meet your present needs, or if the present market offers some new and better investment opportunity than what you already have. So, you shall move as the road suggests to.

• The finish line: This is your ultimate goal, a happy retirement.

The bottomline is there will be steep turns and tolls where you have to stop by to achieve your short and long term goals. There will be diversions as well, but you do not have to deviate from your set plan, since these diversions are the temptations to take a short cut which will ultimately mislead and prevent you from achieving your life goals. You have to overcome and exploit them wisely.

Your investment plan is the road that you will travel on, your determination is the fuel which will keep you going, your hard work is your engine, and when you are on the hot seat, feel the thrill and be ready for the best.

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Young adults are perhaps the richest among all of us. They have something more - "time", an age when the possibilities are unlimited. In case you are a young adult in 20s or 30s or a parent / guardian with children approaching or are in their 20s, this article is for you. The article guides us to do a few things which perhaps no one has ever told us to do. These things will introduce you to the world of finance and when taken, will be your first steps to the world of finance...

Why Take These Steps?
There is one common thing which most people after the age of 35 regret. That common regret is about not knowing about investments and saving at a young age. To be financially successful, being skilled and knowledgeable is not enough. You need to have the right wealth management skills to be rich. It can amplify or magnify your income many times over. Hence, while you should focus on learning and pursuing your career dreams, you should also focus on increasing your 'wealth quotient'. The earlier you take the jump, the chances of becoming wealthier soon, increases.

Being in your teens or in your 20's is the best time to take the steps listed here...

The First Steps:

1. Learn about Personal Finance & Investing
   Knowledge about personal finance topics and investing at an early age is a great asset. Young adults must know about different asset classes, investment products, insurance, loans & credit, time value of money, inflation, savings, taxation, financial planning, etc. Such knowledge, especially during early years of career can really help someone take great decisions for future. If you are a guardian, be sure to involve the young adults in your own investment decisions. There are many ways in which young adults can gain financial knowledge. Some of them are...
   • Read books, finance magazines and watch TV shows on investments
   • Interact with financial advisors, accountants, experienced family members
   • Attend investment seminars/camps by regulators, participants in financial services industry
   • Enroll for any certification from the many offered by NSE/BSE on the subject matter
2. Get Engaged
   Your parents must already be investing and interacting with their accountants and financial advisors. We encourage you too to participate in learning and understanding the decisions, your parents are making. You may ask them about what financial savings are being done for your future. You may also enquire about insurance coverages, etc. taken for all family members and whether those are accurate. As savvy Internet users, you may also share your feedback and suggestions to your parents in their wealth management activities. We are confident that with the kind of access to information you have, you can
3. Control your spendings
   Young adults are perhaps the most valued consumers hunted by every big brand ranging from cars to shoes to laptops to even holiday packages. With the newly gained earning power and lack of big responsibilities, it is natural that spendings on entertainment, gadgets, accessories, hanging out / parties, etc. form a big chunk of the spendings. Surely it is the time to enjoy life but young adults are advised to control their urge to splurge and not make impulsive decisions. It would be great if one can budget such spendings and avoid taking big decisions like buying motorbikes, cars, laptops, etc. without adequate thinking and research.
4. Start investing immediately:
   We have often spoken on this topic. The benefit of saving early can never be under estimated. Even if the savings is mall, with the power of compounding, the wealth created by you can be enormous, as seen from the following matrix.
   In the above e.g., Mr. Delay would have to invest thrice the amount, or R 30,000 monthly, saved by Mr. Smart if he wants to match the wealth created by him at age 35.
5. Get PAN & start filing tax returns:
   PAN card can be issued to any person, irrespective of whether there is any earning or not. And, if you have started earning, it is best to start preparing & filing income tax returns (ITR), unless exempted. Filling of ITR has many advantages as it is considered as a standard income proof globally and can help you while applying for loans, visa applications for jobs abroad, requesting tax refunds, etc. The PAN issued by IT authority is a prerequisite for filing ITR and is also mandatory for all financial transactions. So it makes sense to get yourself one, even if you don't have much income.
6. Get health & life cover
   Getting adequate protection at a young age, where people tend to be more adventurous, is highly advised, even if there aren't any dependents on you. Buying health or life cover at a younger age is also considerably cheaper than buying the same later. Such protection can really help one, in case there is any unforeseen emergency and financial burden on parents will be avoided.
7. Start thinking about home
   The average age of home & car buyers has decreased dramatically in the last 20 years. Powered by easy availability of loans, fat pay packages & growing aspirations, the first time home buyer today is often around the age of 30. The first time car buyers are even younger. It would thus be best advised that young adults keep these goals in mind and start saving as much as possible for home & car goals, if any, from now onwards. It would really benefit you a lot when the time comes for purchase in near future. Often young adults delay saving for the goal and end up paying lesser down-payments and taking higher amount of loans which should be avoided. Lastly, even if you have a house of your own, it is advisable to think of buying a house as an investment for future and also enjoy tax benefits on same.

Conclusion:
Having time on your side is a great advantage and never to be missed. It is also the time that you can afford to make mistakes while learning - this is a luxury which most people cannot afford at the later years of their lives. Experience has shown that wise decisions, actions and discipline in these formative years go a long way in securing a better financial future down the line. Simple actions taken today can help you avoid taking tough decisions at times when you have a family to support and lot of responsibilities to be taken care of. So go ahead and make the best of this time.

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