4 Money Lessons From Diwali

3 min read
In this article, we will discuss 4 important money lessons from the festival of Diwali so that you can design your financial planning in a proper way.

Important Money Lessons Diwali Teaches Us


In this article, we are going to discuss the 4 important money lessons from the festival of Diwali so that you can do your financial planning in a proper way. It will help you fulfill your various financial goals. Every year, we celebrate Diwali with a lot of enthusiasm and elegance. Diwali brings auspiciousness and prosperity in our lives.

Financial Planning Knowledge Bank by Invest Yadnya
Financial Planning Knowledge Bank by Invest Yadnya

4 Money Lessons From Diwali – Festival of Light

There are a number of festivals in our culture which teaches us various moral lessons. However, these festivals are also a great source to learn various financial lessons too.

Lets discuss the 4 important money lessons from ‘Diwali’, popularly known as ‘Festival of Lights’.

4 Money Lessons From Diwali
4 Money Lessons From Diwali

1. Time to ‘Clean up’ Your Investment Portfolio

  • Before Diwali, we clean our homes, re-assemble things in a better manner and dispose of the stuff which is not required as per the current need. You can apply the same concept when it comes to your investments.
  • You should review your Investment portfolio regularly. One should identify the non-performing investment schemes with respect to the timely and anticipated returns and discard them appropriately.
  • Non-performing or unsatisfactorily performing assets will adversely affect the performance of your entire investment portfolio. In such case, you need to eliminate them to optimize the performance of the overall portfolio.

2. Get Rid of The Darkness of Financial Ignorance

  • Diwali is celebrated with the lightening of lamps, which remove the darkness surrounding us. A lamp signifies knowledge through which darkness is eliminated. Similarly, you can diminish the darkness or ignorance related to finance and investments.
  • You should identify your past financial mistakes such as :
    • Choosing a wrong financial product : Going with a product-oriented approach than a process-oriented approach of financial planning
    • Opting a wrong financial scheme or fund which is providing you consistently lower returns than estimated, which will not help you towards achieving your financial goal.
  • After identifying the financial mistakes, you need to take the corrective action so that the same financial mistakes will not occur next time in the future.
  • You need to follow a proper financial planning approach and set your short-term & long-term goals. You can take the help of a financial planner for the same.

3. Play Safe via Risk Management

  • Though we enjoy fireworks, it all requires to take the needed measures to keep us safe. It is crucial to ensure precautionary ways to avoid any accident leading to a significant loss.
  • Similarly, the same calculated risk with safety net should be applied in money matters as well. Thus, it is essential to get your life and your assets protected through a financial arrangement which will offer a safety net to your family in case of any unforeseen emergency.
  • Under risk management, Life Insurance, Health Insurance, Home Insurance and Vehicle Insurance play an important role.

4. Diversify Your Financial Portfolio

  • In diwali, you tend to buy a variety of sweets, fruits, gifts to have a joyous and fun time with your entire family with a variety of options. We create a great variety in diwali decoration, sweets, gifts and rangoli colours.
  • In the same way, your financial portfolio should have the same diversification and variety. You can choose a combination of schemes having varying risk & return profile. It will help you to achieve financial balance and stability.


  • Diwali is a celebration of lights. This festival teaches various money management lessons, which we can implement in real life. It will help us lead the way towards a strong financial planning.
  • The cost of delay in investing or not taking right decisions can be huge. It will impact the future in the long run. Therefore, it is thus advisable to choose investment options that are concurrent with your financial goals.
  • It is time to plan your investments and celebrate a safe, sparkling and financially planned Diwali!!

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