India is a land of festivals; there is one festival or another festival being celebrated in some or the other parts of the country. However, what is more interesting is that every festival has a story behind it and some lessons that every human being must learn in their lifetime. Every ritual also entails some story or lesson that needs to be understood. But do you know what’s more interesting? All these lessons are actually smart money lessons from festivals, which we often do not pay heed to amidst all the celebrations. 

Let’s see how festivals in India are silently giving us finance tips that we need to learn and build our financial planning and investments upon. 

Start Planning as Early as Possible 

As a calendar year begins, you check all the important festivals of the year, don’t you? It is either to plan your budget for the festive season, or if you are planning a holiday or any functions, and all these require money and thus need planning from before, so that you can have the required budget and all the setup done within time. 

Isn’t it the same for financial planning as well? When a fiscal year starts or even if you go by calendar year, why not plan your finances right at the beginning of the year? Have a calendar with the dates on which you will invest in your mutual funds, or pay your insurance premium, or maybe your FD is maturing and you will again fix the amount in another debt fund, etc. 

When you have a plan from the beginning of the year, just like you have a plan for your festivals, it becomes easier to manage the funds, and you get enough time to find the right schemes, or financial instruments, just like you get enough time to choose the right dress, or gifts for your festivals. 

Enlighten Yourself as Every Festival Does 

Festivals mean lights and joy, and what could be more joyful than learning something new, isn’t it? While festivals light up our home, we must enlighten ourselves by learning about new ideas to save and invest more so that we can build a financially secure future for our loved ones. 

As you are buying gifts, dresses, and sweets this festive season, gift yourself some financial planning books, or enroll in some courses to learn more about financial planning and investments. 

Compare the Financial Instruments, not the Financial Standing

While festivals and occasions are all about joy and happiness, in India, they often turn into a place where people gossip and compare different people on their financial status, which must stop with this generation. What do you think? 

If you really need to compare something, then it should be the financial instruments you are planning to invest in. 

Often, people also invest just become their peers are investing and they are making good returns. But if you invest without asking about your own investment goals, financial aspirations, and risk appetite, then you will end up in losses now or in the future, as your investments should align with your investment goals, not with your peers. 

Blend of Traditions with Modernity 

During festivals, every member of the family comes together, and traditions and old rituals blend with new-age thinking. Similarly, to build a solid financial plan, you need both traditional instruments, such as fixed deposits and insurance policies, along with mutual fund SIPs, and bonds and equities. 

While the traditional instruments will keep you rooted and help you stand still during tough times, the modern date instruments will help you grow just like a family. 

Stick To your Budget 

Another lesson that every festival helps us learn in some way or the other is that we must stick to our budgets. If you can start planning from the beginning and then slowly save the amount you need for a festival, and limit your expenses within that, then you can easily enjoy your festivals without taking any debt. Similarly, in life, if you can stick to your budget and do not overspend, then you do not have to rely on debt. 

Moreover, sticking to your budget also means you are saving the amount you have decided to save, and investing it regularly can help you generate a good corpus to secure your future financially.  

Preparing for Emergencies 

While budgeting and saving from the beginning of the year can help you enjoy your festivals without tension, life is uncertain, and any extra expense can pop up, especially when it’s festive season. 

If you remember, our parents used to keep a certain amount aside for the festival needs apart from the expenses, which was an emergency fund for the festivals. While they may not know the term for it, they always follow this approach. 

Having said that, emergency funds are not only for festivals; you must have a separate emergency fund always, and this is another smart money concept you must learn this festive season. Just like an emergency can ruin all your festive mood, similarly, any emergency can ruin all your financial planning. But with an emergency fund, you can handle the situation well and have less stress. It will also save your financial plans and goals, as it can save the festive days. 

Cleaning Before the Festive 

Right before the arrival of festivals, every household starts cleaning its homes to get rid of dirt and unnecessary items. After cleaning the house, usually people buy things that are required for the home and the people living in it. This indicates the need to check your investment portfolio periodically and rebalance the portfolio as per investment goals and market dynamics to optimize returns. 

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Final thoughts 

So, this festive season, let’s learn the hidden lessons in every ritual, every occasion, and every story that make the festivals so special. You can even find some festive finance tips 2025 in some of the age-old traditions and rituals of these festivals, which are the soul of India. 

Smart Money Lessons from Festivals | FAQs

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