This Navratri, transform your financial habits with practical money lessons from budgeting and investing to debt management and maximizing rewards. With SalarySe, learn how to celebrate smarter, save more, and invest in your future.
Every Navratri, we dress in colours, dance to garba beats, and renew our devotion for nine nights. But hidden inside the rituals is another timeless lesson: discipline. The same discipline that helps us through fasting and celebration can transform how we handle our money.
So, this festive season, let’s borrow wisdom from the goddess’s nine nights and map them to nine thumb rules of personal finance. These aren’t abstract theories — they’re practical, time-tested formulas that can guide budgeting, investing, debt, insurance, and even retirement planning for India’s salaried professionals.
Navratri starts with setting intentions, and the same applies to your wallet.
The 50-30-20 rule is a timeless thumb rule that makes budgeting easy and effective. It suggests allocating 50% of your income to essentials like rent, groceries, and utilities, 30% to wants like dining out or entertainment, and 20% to savings or investments. This simple breakdown allows for mindful spending without feeling deprived. It’s not rigid, but it forces balance.
But budgeting isn’t just about numbers; it’s about habits. When it comes to impulse purchases, the 30-day rule works wonders. If you feel the urge to buy something unplanned, simply wait for 30 days. This cooling-off period helps to determine whether the purchase is truly necessary.
Festivals remind us that life is unpredictable. Financially, that means maintaining 3–6 months of living expenses in liquid funds (FDs, liquid mutual funds, or high-yield savings accounts) so that you can weather any storm without falling back on debt.
Your emergency fund should be easily accessible, like a safety net. In case of job loss, medical emergencies, or unexpected household repairs, this fund can keep you afloat without resorting to high-interest loans or credit card debt.
Debt can quickly snowball into a financial nightmare if not managed carefully, especially during festivals when we tend to splurge. The rule for credit utilisation is simple: keep your credit usage below 30% of your total available credit limit. Maintaining a low credit utilisation ratio improves your credit score and ensures that your financial health remains intact.
Another rule to keep debt in check is that EMIs should not exceed 40% of your monthly income. If your monthly income is ₹50,000, try to keep your EMIs below ₹20,000. This ensures that you don’t overburden yourself with repayments. To manage debt efficiently, you can use the following methods:
Navratri teaches us about protection, and financially, that means ensuring we’re covered. Life insurance should be a priority — the thumb rule is to have 10–15 times your annual income as coverage. This ensures that your family is financially secure in your absence, maintaining their lifestyle without sacrificing their needs.
For health insurance, aim for a policy that provides coverage equal to at least 50% of your annual income. If you’re buying critical illness coverage, make sure it complements your health insurance and doesn’t overlap with the benefits you already have.
Just as Navratri symbolises growth, investing is about planting seeds that will yield fruit over time. The 100-minus-age rule is an easy way to determine how much of your portfolio should be invested in equities. Subtract your age from 100, and that’s the percentage of your investments that should be in high-risk, high-return assets like stocks or equity mutual funds.
For instance, a 25-year-old should invest 75% of their funds in equities, while a 45-year-old might only allocate 55% in stocks, balancing their portfolio with safer assets like bonds or fixed deposits.
But festivals also trigger herd behaviour - think of the IPO rush. In today’s market, IPOs have become an attractive option, but they come with their own set of risks. The thumb rule for IPOs is simple: never invest based solely on hype. Before jumping in, always research the company’s financials, debt levels, and growth potential.
Retirement planning is something that can often feel distant, but it’s crucial to start early. The FIRE (Financial Independence, Retire Early) movement has grown in popularity as people are focusing on saving aggressively to retire early. The thumb rule for retirement savings is to save at least 15% of your income for your retirement starting as early as possible.
A simple way to think about retirement is to aim for a corpus that’s 25 times your annual expenses. So, if you need ₹5 lakh annually, you should aim for a corpus of ₹1.25 crore. Start with SIPs (Systematic Investment Plans) and PPF for long-term growth, and review your portfolio regularly to ensure that it aligns with your retirement goals.
Understanding how your salary is structured is key to managing taxes and saving more
Tax Implication: This is fully taxable, but it forms the foundation for calculating other allowances and benefits, which may qualify for exemptions.
Tip: Ensure you’re not overpaying taxes by understanding which allowances are linked to your basic salary.
Tax Implication: Part of HRA is exempt from tax if you live in a rented property. It’s calculated based on rent paid, the amount of basic salary, and the city of residence.
Tip: If you live in a rented home, make sure to claim the exemption under Section 10(13A). Keep rent receipts handy.
Tax Implication: Contributions to Provident Fund (PF) are exempt from tax, but only up to a certain limit. Employee contributions are eligible for tax deductions under Section 80C.
Tip: If you’re a salaried employee, ensure you’re contributing towards your PF, and claim this under 80C while filing your ITR.
Tax Implication: LTA is exempt from tax when used for travel within India, provided certain conditions are met (such as submitting bills and travel receipts).
Tip: Use your LTA for eligible trips during the year and retain all travel receipts.
Tax Implication: These are fully taxable as they’re linked to your performance. However, any part of the incentive paid as a bonus or long-term incentive could be eligible for tax savings if invested under Section 80C.
Tip: Invest in tax-saving instruments to minimise the impact of bonuses/incentives.
Tax Implication: Leave encashment is tax-exempt to a limit when received during retirement. However, if encashment is received during employment, it is taxable.
Tip: You can plan to encash your leaves toward the end of your service to avail tax exemption during retirement.
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The festival ends with Vijayadashami, the victory over evil. Financially, this means burning bad money habits. Just as we review our actions at the end of Navratri, it’s essential to take stock of your financial health at the end of every month. Regularly check your spending habits, credit card statements, and savings goals to ensure that you’re on track.
Many people underestimate their expenses, especially during festivals. To get a clear picture of where your money is going, start using tools like SalarySe UPI or RuPay credit card to track transactions. With rewards and cashback at your fingertips, you’ll not only spend wisely but also earn along the way.
With Navratri's devotion as a backdrop, these nine lessons are your financial path to prosperity. Whether it's budgeting, investing, protecting with insurance, or planning for retirement, each of these thumb rules represents a principle that can change your financial future.
As we celebrate renewal, let's also renew our relationship with money — wise spending, disciplined saving, and smart investing. Just like Navratri brings light at the end of each night, these habits will illuminate your financial path toward independence and security.
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