Dhanteras – Seven Steps Towards Financial Freedom
Dhanteras or Dhatrayodashi is an auspicious day which marks the commencement of Diwali celebrations. Derived from Sanskrit, Dhan represents wealth while Teras refers to the 13th day of the Hindu calendar. On this day, Goddess Lakshmi is worshipped in all Hindu households and the day is marked by purchasing metal objects such as utensils made of iron, copper or brass or gold & silver jewellery. Additionally, many families’ light up lamps in the evening not only to welcome goddess Lakshmi into their houses but also to ward off any evil spirits.
Dhanteras is considered extremely significant for Indians as it’s believed that purchasing metal on this day will result in Goddess Lakshmi showering them with more blessings. Additionally, it’s widely regarded that starting a new business on this day will also be very profitable. On the occasion of this propitious day, we have listed out seven ways in which one can secure their future financially to ensure you’re always prosperous and successful.
- Set Financial Goals
Define your goals clearly by categorizing them into short-term, medium-term, and long-term as it’s the first step that sets you on a path towards achieving your financial goals. Make sure you do follow up regularly on the progress of these goals while ensuring you have a contingency plan in place to factor in any unforeseen surprises so that you and your family stay protected at all times.
- Pay Off Your Debts
Debt can not only impact your credit score but can also have an adverse effect on your mental psyche. Therefore, it makes sense to make smart decisions by prioritizing and clearing off any existing debts as soon as possible. Once your debts are paid off, it will instil a sense of resolve that will help you stay financially healthy.
- Stay Covered
One of the biggest financial follies is not buying insurance or having little insurance coverage. Insurance is a must-have so ensure you have adequate insurance to secure yourself and your family against unforeseen circumstances, regardless of the probability. This will ensure that any future costs related to those who are dependent on you financially are adequately covered by insurance.
- Create Multiple Income Streams
An often overlooked aspect of financial planning is the importance of creating multiple income streams. It not only has the uncanny ability to build wealth and sustain it over the long term but also ensures that you don’t take a huge hit during life's many unexpected events.
- Cut Spending
Saving money requires continuous effort and sacrifice. Once you realise how the little things add up, you will learn how to spend judiciously while understanding the differences between needs and wants. Find out ways to eliminate expenses that are not essential and instead divert those savings towards wealth creation.
- Have a Well-Stocked Emergency Fund
No matter how financially prepared you think you are, it’s imperative that you have an emergency fund in place to cover any financial surprises life throws your way. Being prepared with an emergency fund tucked away in a savings account or an easily accessible investment gives you the confidence to pay for any unexpected expenses while helping you to stay afloat.
- Invest Wisely
Never rush into financial decisions and be certain to do ample research before taking any investment decisions. Always take calculated risks and if unsure, make sure to spend couple of sessions with a financial counsellor at the time of investing.