During this time of the year, many salaried employees receive a major amount as bonus or ex-gratia or performance incentive.
The period also coincides with the festival season. Most people spend this amount on purchases like a car, white goods, jewellery, etc, as it is considered auspicious to buy such items in this period. Some spend lavishly on gifts to near and dear or for religious rituals. Some spend on extravagant vacations. No doubt, people derive much satisfaction by spending the amounts instantaneously. For such people, it is advisable they save some amount for rainy days. It is necessary to secure your financial future.
Rather than spending on items such as cars, white goods, jewellery and so on, a person can make investments like buying a gold ETF, taking an insurance policy, prepaying a home loan, buying a long-term bond or fixed deposit, investing in NSC/KVP, etc. The investments discussed here are mostly of a long-term nature, helping in steady income. Gold has been included as it is an important assets in all households.
