Every Diwali, millions of Indian professionals receive a festival bonus—anywhere between Rs 20,000 and Rs 50,000 depending on their role and industry.
Used thoughtfully, your Diwali bonus can become a building block of long-term financial strength. Some of the smart ways the bonus can work for you:
BUILD OR TOP UP EMERGENCY FUND
Before thinking of investments, secure your base. Allocate 20–40% of your bonus to a high-yield savings account or a liquid mutual fund. An emergency fund should cover at least three to six months of essential expenses—rent, EMIs, groceries, and utilities.
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This reserve prevents you from dipping into investments or using credit cards when unexpected costs arise.
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