Pay Off Debt

It is always better to pay off debt such as a personal loan or auto loan. Individuals by doing this can save money as there will no EMI deduction from the account.

One should always look for a loan which creates assets over time and the product will not decrease with time such as education loan, home loan etc.

Emergency Fund

The main advantage of setting an amount aside is that at the time of need, one need not break the long term investments made.

Individuals should determine how much emergency fund is needed so that the amount set aside is not higher or lower and matches your needs at that moment.

Save Tax

After Diwali, in coming months salaried individuals should  provide proof of tax savings to their employer.

One can invest the bonus amount in some tax saving instrument which are suitable instead of making a last minute decision during proof submission.

This is one of the smart way to make use of Diwali bonus by investing in tax saving instruments.

Retirement Fund

One can lock their extra money in long term instruments where one can enjoy the benefits in the most needed time of life.

The money allotted for the long term can be used for partly funding the purchase of a house, children's education and other requirements.

Diwali Celebrations

There is no harm in shopping for self and for loved ones. But do not fall prey or be lured by discounts and offers. Make a budget and differentiate between wants and needs before shopping.