There is no special or right time to start managing your finances for your retirement as well as other financial goals.
But if you are still finding a good time then there is no better time than Diwali which is at our doorstep.
Diwali is the biggest Festival in India. All 5 Diwali days are considered auspicious for shopping, booking houses, starting new businesses, and buying vehicles.
We all can also start taking our finances seriously this Diwali and mark it as a new start.
The sooner you start investing the better will be your wealth creation.
Diwali is a good time to start learning about basic concepts of financial planning such as
# Risk profiling,
# Asset allocation,
# Goal-based investment,
# Review and Rebalancing, etc.
All these terms are important to plan your investments in a proper way.
If you are naive and want to start your investments this Diwali then first
# Identify your financial goals
# Fix the investment horizons
# Decide the asset allocation for every goal
# Select suitable financial products
For short-term goals, one can use RDs, FDs, liquid funds, and money market funds along with Arbitrage funds.
For mid-term along with these products, one can add hybrid equity funds.
For long-term goals, you can have a blend of EPF/ PPF/ NPS along with Index Funds, Flexicap Funds, and small exposure in mid-cap.
One can have exposure to SGB, Gold ETF, or Gold Mutual funds for diversification in the Gold asset class.