Fly High Like a Kite This Makar Sankranti With Financial Planning in 2024

Jan 15, 2024 / Reading Time: Approx. 7 mins

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Fly High Like a Kite This Makar Sankranti With Financial Planning in 2024

The brisk January atmoshphere is filled with excitement as kites, vibrant squares of hope and joy, dance with the winds of Makar Sankranti. This is one of the few ancient Indian festivals that has been observed in accordance with solar cycles.

Makar Sankranti symbolises the day when the sun moves its course from the Tropic of Cancer to the Tropic of Capricorn, and it is one of the first festivals to be celebrated as we enter the new year.

It's seen as a harbinger of spring, bringing warmth and hope for a bountiful harvest, particularly in South India, where it's known as Pongal.

[Read: Boost Your Financial Savings in 2024: A Guide to Building Wealth]

The exchange of 'til gul,' a mixture of sesame seeds and jaggery, accompanied by the phrase 'til gul ghya, god god bola', encourages forgiveness and promotes positive relationships.

Kite flying is an integral part of Makar Sankranti celebrations, particularly in North India. The sky fills with vibrant kites, symbolising soaring hopes and aspirations. As children giggle, chasing their kites, adults too can embrace this auspicious occasion as a springboard for financial aspirations.

This Makar Sankranti, let's not just soar our kites but also elevate our financial well-being with a set of practical tips tailored to propel you towards a prosperous year. Ditch the financial string-tangles and grab the reins of your fiscal future it's time to fly high, metaphorically and financially, in the spirit of this joyous festival called Makar Sankranti!

Makar Sankranti, with its tradition of 'til gul' and flying kites, offers some interesting lessons for financial planning. Here's how:

1. Seeds of Wealth - Begin Investing with a Small Amount

Sesame seeds (til) signify abundance and potential. Just like planting a seed leads to a thriving plant, investing a small amount consistently can gradually grow into substantial wealth. Start small, be patient, and watch your finances blossom.

One can begin with minimum investment in mutual funds via SIPs with as low as Rs 500/-. It offers the benefit of the power of compounding and helps your money grow gradually over a period of time. The rupee-cost averaging feature in SIPs reduces your cost of investment. It lets you buy more units when the market swings downwards and fewer units when it rises.

Consequently, SIPs in mutual funds allow an individual investor to begin with minimum investment in mutual funds, generate inflation-beating returns and work towards achieving the envisioned financial goals.

[Read: Smart Financial Planning: Don't Risk Your Long-Term Goals to Meet Short-Term Expenses]

2. Sweetening the Deal - Create a Prudent Budget

Jaggery (gul) represents sweetness and good fortune. In financial planning, this translates to finding joy in the process. Make budgeting and saving enjoyable by setting achievable goals, rewarding yourself for milestones, and finding ways to make finance less stressful.

In 2024, given the uncertainties like economic fluctuations and geopolitical tensions looming, prioritising savings and building financial security has become more crucial than ever. Whether it's saving for a dream vacation, securing your retirement, or building a rainy-day fund, ensure to aim to save more this year.

Remember, even small savings efforts can make a big difference over time. Every rupee saved is a step towards financial security and achieving your personal goals. Building wealth isn't a quick fix; a steady journey paved with smart choices, and consistent effort will assist in the long run.

[Read: 5 Simple Steps to Create Your Personal Finance Budget]

The vibrant tradition of kite flying during Makar Sankranti, soaring high against the winter sky, also teaches a very important lesson.

3. Mastering the Winds of Change - Embrace Financial Flexibility

Wind plays a crucial role in how a kite flies. Similarly, unexpected economic shifts or personal circumstances can impact your financial journey. Building flexibility and adaptability into your plans helps you adjust to changing winds and navigate challenges effectively.

One may always be prepared to make adjustments as the situation demands. The financial markets are inherently volatile. A flexible plan allows you to stay calm and collected when the market dips, knowing you have the buffer to weather the storm and adjust your investment strategies as needed.

[Read: The Ultimate Investment Framework to Beat Market Volatility]

By embracing flexibility, you can become the kite flyer, not the kite, confidently navigating the winds of change and reaching your financial goals with grace and resilience.

4. The Balancing Act - Risk and Reward

Balancing the bitter (til) and sweet (gul) Flavours embodies balance in financial planning. Prioritise needs over wants, avoid excessive debt, and maintain a healthy mix of expenses and savings to achieve financial stability.

A skilled kite flyer knows how to balance the string to keep the kite aloft without pulling it back too much. This translates to finding the right balance between risk and reward in your financial decisions. Consider diversifying your investments to spread risk while still aiming for potential growth.

Allocate investments across asset classes like equity, debt, gold, and sectors/themes to effectively balance the portfolio's risk-reward ratio and associated market risks.

5. Seasonal Renewal - Review Your Portfolio

Makar Sankranti marks the turning point from winter to spring, symbolising renewal and fresh beginnings. This is the perfect time to review your financial plans, adjust investment strategies, and set new goals for the year ahead.

Vigilant monitoring of your investment portfolio is a crucial task that one may conduct semi-annually or annually. Ignoring a periodic portfolio review may lead to missed opportunities; you might keep pouring money into underperforming investments, asset allocation may differ, lower returns, etc.

Periodic portfolio reviews are your pit stops along the way, allowing you to refuel, adjust your course, and ensure you are on the right track. In addition, if required, you may even rebalance your portfolio.

Rebalancing your investment portfolio is nothing but changing the deviations of the existing asset allocation and forming a desired asset allocation to align it with your current financial goals as per the changing market conditions.

To conclude...

Whether your goal is reaching a mountain of savings, building a sturdy nest egg for retirement, or simply finding peace with your finances, remember the lessons of the kite: set your sights high, adapt to changing winds, celebrate milestones, and most importantly, never stop learning and growing.

Remember, just like a successful harvest requires dedicated effort, achieving financial goals also takes planning, patience, and a sprinkle of sweetness along the way. Building financial wellness is a continuous process, so enjoy the ride!

So, embrace the spirit of Makar Sankranti, take control of your financial journey, make wise decisions, and watch your financial dreams take flight towards a truly prosperous 2024!

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MITALI DHOKE is a Research Analyst at PersonalFN. She is an MBA (Finance) and a post-graduate in commerce (M. Com). She focuses primarily on covering articles around mutual funds including NFOs, financial planning and fixed-income products. Mitali holds an overall experience of 4 years in the financial services industry.
She also actively contributes towards content creation for PersonalFN’s social media platforms in the endeavour to educate investors and enhance their financial knowledge.


Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.

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