Divine Decisions: Smart financial planning lessons this Ganesh Chaturthi

Table of Content

1. The stepping stone for young entrepreneurs

2. A Festive Reset

2. Conclusion

Ganesh Chaturthi marks a fresh start for many. Families welcome Ganesha, the remover of obstacles, into their homes and lives. It is a time for celebration and is considered an auspicious moment to start something new: a business idea, a career shift, or a personal decision.

If you are a young entrepreneur, Gansesh Chaturthi is considered an auspicious time to expand your business.  And to do so,  you need structure, clarity and discipline. While you may be concentrating on your business endeavours, it is also important to ensure your personal financial journey does not take a back seat during this time.

So where do you start?

The stepping stone for young entrepreneurs

Running a business can be a rocky journey. Cash flow jumps up and down. A constant flow of income can feel uncertain. And expenses don’t stop. In such a space, financial planning becomes more than advice; it becomes a necessity.

1. Set clear goals. Decide what you want from money. For instance, you may want your business to support your family within three years. Or you may want to buy a home in ten. Write these down. Without written goals, the numbers float without direction.

2. Track cash flow. Many new entrepreneurs focus on revenue and ignore expenses. Keep a record of every rupee. If you see monthly rent, salaries, and loan repayments eating most of your earnings, you will know where to cut. A simple spreadsheet or app can do the job.

3. Build an emergency fund. There is always a possibility of clients delaying payments. Sales may also slow down. Having six to twelve months of living expenses saved can save you from debt. Here you have the option of investing this money in a savings account or choosing a savings plan. Investments like a savings plan provide life cover and can also help provide regular income, which can be used in case of an emergency.

4. Invest in insurance. You can choose to invest in a term plan and add riders like critical illness or accidental death benefits. This would mean that in case of an unfortunate event of a sudden illness or untimely demise, your family will be taken care of financially.

5. Separate personal and business money. Many new entrepreneurs end up mixing both. That creates confusion. Open a separate bank account for your business. Every month, pay yourself a fixed salary from business income. This will help you separate your personal expenses from business expenses.

6. Use the power of compounding to grow your wealth. Invest early, even if it's a small amount. The effect of compounding works with time. Even ₹2,000 a month in a ULIP can grow into over ₹10 lakh in 15 years at 12% annual return.

7. Plan for taxes. Many ignore taxes until the last month. That hurts cash flow. Estimate tax liability in advance and keep aside money every month. Use deductions available under various sections of the Income Tax Act, which allowpayments on certain investments, like premiums paid on life insurance, to be deductible from income.*

8. Avoid unnecessary loans. Taking a loan for machinery or office space may be required. But avoid borrowing for lifestyle expenses. Use your credit card sparingly. One missed payment can create a domino effect on your financial freedom.

9. Keep learning. Financial literacy is not a one-time exercise. Read about markets, insurance, tax rules. Follow trusted sources. Knowledge will keep you from repeating costly mistakes.

10. Seek professional advice when needed. You don’t need to figure out everything alone. Talk to a financial planner or mentor when numbers confuse you. Professional help costs less than wrong choices.

A Festive Reset

If you have already crossed over as a mid-level professional, how can you make the best of this this favourable time?

For mid-level professionals, it’s about checking the path they are already walking.The following steps may sound basic and will feel like reminders. Yet all of them matter, because ignoring even one can shake the plan. Instead, think of Ganesh Chaturthi as the perfect time for renewal and gaining clarity

1. Revisit your goals. Five years back you may have planned for a car or a vacation. Now you may be thinking of children’s education or retirement. Check if your current investments match new goals. Adjust if required.

2. Review insurance cover. A policy bought ten years ago may not be enough today. Medical costs have risen. Family size may have changed. Hence, it is necessary to review your insurance cover to reflect today’s needs.

3. Check your portfolio for asset allocation. Many professionals invest heavily in fixed deposits. That feels safe, but inflation can eat into your returns. See if you need to shift some money into ULIPs that can aid in wealth protection and generation.s

4. Evaluate debt. A home loan can be useful, but credit card debt is not. If you carry high-interest debt, make repayment a priority. It frees cash for better use.

5. Strengthen emergency fund. Salaried professionals face risks too. Job losses, medical emergencies, or sudden expenses can appear anytime. Look for investment instruments that can provide regular income like a in case you find yourself in an unfortunate situation.

6. Planfor retirement. Do not wait till age 50. Retirement funds need time to grow. Use insurance retirement-focused plans that can help build a substantial retirement fund. Estimate what you may need and start building now.

7. Focus on children’s needs. Education costs rise each year. Create a separate portfolio for this. Child insurance plans can be tailored to fit your child’s aspirations.

8. Use tax benefits wisely. Salaries allow structured tax planning. Maximise deductions under various sections of the income tax rules.*

9. Update nominations and documents. Often, professionals forget to update nominees in policies and bank accounts. A simple update avoids trouble later. Keep documents organised so family can access them if required.

10. Balance lifestyle and saving. Mid-level income allows comfort spending, including holidays, new gadgets and luxury spending. While there is nothing wrong with enjoying money, ensure to keep a clear ratio. Spend some, save more. That balance avoids guilt and regret.

Conclusion

Ganesh Chaturthi is about new beginnings and clearing obstacles. In financial life, the obstacles are often of our own making. Ignoring planning, delaying investment, taking on debt, or not protecting with insurance. Removing these is the real blessing.

A young entrepreneur may pray for first customers. A professional may be thankful for stability. Both still need a clear financial plan.

Financial planning is not a one-day ritual. It’s a practice that grows stronger with discipline. Just as families bring Ganesha home each year, return to your financial plan regularly. Welcome the chance to improve it. Celebrate small progress. Protect against mistakes. And carry forward the wisdom with you.

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