New Delhi: It's once again Holi time. Holi is celebrated across two days. The first day is marked by `Holika Dahan` where the people lit various borne fires and gather around to offer their prayers. On the second day, people celebrate `Dulhandi` where everyone applies colour to each other.
The festival of colours is one of the most popular festivals in the country and it can teach us several financial lessons.
What can we learn from Holika Dahan?
The festival of Holi celebrates the victory of good over evil. It also represents the story of the death of Holika, the sister of a king named Hiranyakashipu who had fallen to her own trap set to kill his nephew Prahlad who is said to be saved by Lord Krishna as the latter went on to rule the kingdom of `Daityas`.
We can learn to kill the burden of bad debt from the Holika Dahan ritual. The burden can adversely impact your your Cibil score negatively as well. On one hand, while good CIBIL can fast-track your debt application, a bad CIBIL scores can do the reverse. Improve your creditworthiness by improving your CIBIL score. Hence, kill all the bad debt that you have.
What can we learn from Dulhandi?
Roaring red, pretty purple, blissful blue, gorgeous green, sun-kissed yellow — Holi is all about diversity of colours. Now, imagine a holi without these wide range of colours. Won't that be boring and morose? The colours and the diversity teach us to diversify our portfolio. You might have heard it umpteen times that you should not put all your eggs in one basket. Hence don't investing all your money on stocks. Diversity your portfolio to several other asset classes. It will minimise your risks and maximise your returns.
Holi also teaches us not to be over enthusiastic. One should always play safe and avoid all sorts of hazards. Similarly, one should invest in safer bets. Take your financial advisor's help if required and play safe.