The Diwali Purification, Reclaiming Our Civilizational Relationship with Wealth and Financial Order

The Diwali Purification, Reclaiming Our Civilizational Relationship with Wealth and Financial Order

As the diyas are lit and homes resonate with the chants of the Lakshmi Puja, a profound cultural paradox unfolds across India. A civilization that once enshrined Artha—the pursuit of wealth—as one of the four fundamental goals of human life, now approaches money with a complex blend of desire, guilt, and moral suspicion. This Diwali, beyond the ritualistic cleaning of our physical spaces, lies an opportunity for a more profound purification: the cleansing of our financial lives and the reclamation of a healthy, structured, and culturally-grounded relationship with money. The contemporary Indian’s journey with wealth is fraught with historical baggage, from the scars of colonial impoverishment to the post-independence socialist dogma that painted profit as a dirty word. The result is a national psyche that, while fervently praying to the goddess of wealth, often remains frozen, disorganized, and fearful in its practical management of finances. This Diwali, the most transformative gift we can give ourselves is the gift of financial order—a systematic, clear-headed approach to our money box that can liberate us from anxiety and build a foundation for genuine prosperity.

The Cultural Schism: From Purushartha to Puritanical Suspicion

To understand the modern Indian’s financial disarray, one must first navigate the schism in our civilizational memory. Ancient Indian philosophy, as articulated in the concept of the Purusharthas, provided a balanced framework for a complete life. These four aims—Dharma (righteousness, duty), Artha (wealth, means of life), Kama (desire, enjoyment), and Moksha (liberation)—were not mutually exclusive but interdependent. Artha was the essential foundation upon which Dharma and Kama could be practiced effectively. A stable material life was seen as a prerequisite for ethical living and spiritual pursuit.

However, centuries of colonial rule systematically impoverished the subcontinent, creating a deep-seated trauma that reshaped this worldview. Widespread poverty bred a defensive binary: the rich were often viewed as morally compromised, their wealth assumed to be ill-gotten, while the poor were romanticized as spiritually pure. This narrative was further cemented in the post-independence era by a socialist ethos that demonized capital and profit. The celebration of asceticism overshadowed the pragmatic pursuit of Artha, and a display of wealth became culturally crass, something to be hidden behind the label of “middle-class values,” even by the super-rich.

This internal conflict manifests vividly during Diwali. The same society that harbors a moral suspicion of wealth engages in enthusiastic, heartfelt worship of Goddess Lakshmi. This is not hypocrisy, but a reflection of a deep, unresolved tension. We inherently understand the importance of wealth, yet we are culturally conditioned to feel ambivalent about actively pursuing and managing it. This ambivalence is the root of our financial paralysis. We desire money, but we are afraid to talk about it openly, plan for it strategically, or manage it with the same discipline we apply to other aspects of our lives.

The Anatomy of Financial Clutter: A Modern-Day Miasma

The consequence of this conflicted relationship is what can be termed the “financial miasma”—a state of chronic disorganization and clutter that creates underlying stress and impedes prosperity. This clutter is not merely physical paperwork; it is a multi-layered problem that saps time, energy, and mental peace.

1. The Paperwork Quagmire: The most visible sign of this miasma is the chaotic state of financial documentation. It is astonishing how many individuals, including those in their 50s, operate without a basic system for organizing their financial records. The annual tax-filing season becomes a panicked scramble to locate Form 16s, investment proofs, and bank statements. This last-minute chaos is a direct result of treating financial organization as a distasteful chore rather than a essential life skill.

2. The Subscription and Digital Leakage: In the digital age, financial clutter has evolved. As the article highlights, India paid a staggering $15-20 billion to global tech giants for services, alongside billions more in OTT platform fees. This points to a modern form of financial drain: the silent, automated leakage of money through unused or duplicate subscriptions. Gym memberships that go unused, multiple streaming service accounts for the same family, and auto-debits for forgotten apps collectively represent a significant erosion of potential savings.

3. The Relationship Overload: We complicate our financial lives by maintaining redundant relationships with financial institutions. Legacy bank accounts kept open out of nostalgia or oversight, a wallet full of credit cards from different banks, and multiple trading and mutual fund accounts across various platforms and agents—each of these “relationships” comes with a hidden cost. This cost is not just financial; it is the cognitive load of managing numerous usernames, passwords, KYCs, and communication channels. This complexity freezes us into inaction, making it difficult to have a clear, consolidated view of our net worth and asset allocation.

4. The Real Estate Labyrinth: For many, the pinnacle of financial success is a portfolio of physical properties. However, as the article astutely notes, multiple properties can become a “time and energy quagmire.” The management of maintenance, property taxes, society fees, and tenant issues can consume a disproportionate amount of mental space and time, often for a return that, when adjusted for illiquidity and upkeep costs, may be inferior to a streamlined portfolio of financial assets.

The Diwali Detox: A Step-by-Step Guide to Financial Shuddhi

Just as we clean every corner of our home for Diwali, we must apply the same principle of Shuddhi (purification) to our finances. This is not about becoming a financial wizard, but about establishing a system of simplicity and order.

Step 1: The Great Digital Documentation Drive
The goal is to achieve a state where any required financial document can be retrieved and sent from your phone within 30 seconds. This requires a dedicated afternoon of scanning and organizing. Create clearly labeled digital folders for:

• Tax Documents (current and past years)

• Bank Statements

• Investment Records (Mutual Funds, Stocks, PPF, etc.)

• Insurance Policies

• Property Documents
  Use cloud storage with robust security. This single act will eliminate the annual tax-time panic and provide immense peace of mind.

Step 2: The Subscription Audit
Dedicate an hour to review all your bank and credit card statements from the last three months. Identify every auto-debit and recurring payment. Cancel every subscription that is not actively and regularly used. Consolidate family plans where possible. This is not just about saving money; it is about reclaiming control over your financial outflows.

Step 3: The Relationship Consolidation
Adopt a ruthless simplification strategy for your financial relationships.

• Bank Accounts: Reduce to three core accounts: one for primary income and expenses, one for linked investments and EMIs, and a third for emergency savings. Close the rest.

• Credit Cards: Limit yourself to a maximum of two—one for primary use and one as a backup. This simplifies tracking and reduces the risk of fraud.

• Investment Pipelines: Consolidate your investment channels. Use a single, reputable platform for all your mutual fund investments. Use one primary brokerage account for stock trading. This provides a unified view of your portfolio and makes asset allocation clear.

Step 4: The Real Estate Rationalization
This is the toughest but most liberating step. Seriously evaluate your real estate holdings. Does the emotional satisfaction of owning multiple properties outweigh the administrative burden and opportunity cost? Consider the power of the “one roof” principle: your primary residence, with the rest of your capital deployed in liquid, manageable financial assets that “hum quietly in the background.”

Cultivating the Right Mindset: Beyond the Highest Return

Finally, this financial detox must extend to our psychological approach to money. The Diwali prayer to Lakshmi is often subconsciously twisted into a desire for the highest possible return on every investment. This “get-rich-quick” mentality is a sure path to stress and loss. The goal of a healthy financial life is not to “make a killing” but to build sustainable, long-term wealth.

We must redefine success as achieving a return that is consistently positive after accounting for inflation and taxes. This disciplined, long-term approach, free from the frenzy of timing the market, is the true path to financial Moksha—liberation from money-related anxiety.

This Diwali, let us light a lamp within our financial consciousness. Let us shed the historical guilt and socialist baggage that has clouded our relationship with Artha. By embracing order, simplicity, and a clear-headed philosophy, we can restore money to its rightful place—not as an object of crass desire or moral taint, but as the stable, quiet foundation upon which a life of Dharma, Kama, and ultimate Moksha can be gracefully built.

Q&A: Rebuilding Your Relationship with Money

Q1: The article talks about a “cultural paradox” around money in India. What is it?
A1: The paradox lies in the conflict between India’s ancient philosophical teachings and its more recent historical experiences. Our civilization’s foundational texts, the Purusharthas, explicitly name Artha (wealth) as a core goal of human life, essential for supporting Dharma (duty) and Kama (desire). However, centuries of colonial poverty and post-independence socialist policies created a culture that views wealth with suspicion, often equating it with moral compromise. This is why we fervently worship Goddess Lakshmi during Diwali but often feel guilty or disorganized about actively and strategically managing our money in daily life.

Q2: What are the main types of “financial clutter” the article identifies?
A2: The article identifies four key areas of financial clutter:

1. Document Clutter: Disorganized physical and digital paperwork that makes tasks like tax filing a stressful scramble.

2. Subscription Clutter: Unused or duplicate digital subscriptions and auto-debits that lead to silent financial leakage.

3. Relationship Clutter: An overabundance of bank accounts, credit cards, and investment platforms, each adding complexity and cognitive load.

4. Asset Clutter: An over-reliance on multiple physical properties, which create a significant administrative burden compared to more liquid financial assets.

Q3: What is the practical first step someone can take to declutter their finances?
A3: The most impactful first step is to conduct a “Great Digital Documentation Drive.” This involves dedicating time to scan, organize, and securely store all critical financial documents—tax records, bank statements, investment proofs, insurance policies—in clearly labeled digital folders. The goal is to be able to retrieve any document from your phone within 30 seconds. This single act eliminates a major source of annual stress and creates a foundation for all other financial organization.

Q4: Why does the article advise reducing the number of bank accounts and credit cards?
A4: Reducing financial relationships is advised to minimize complexity and “cognitive load.” Each bank account, credit card, or trading platform requires you to manage usernames, passwords, KYC updates, and communication. This overload can lead to missed payments, poor oversight of your total financial picture, and a general sense of being overwhelmed. Simplifying to a few core accounts (e.g., one for spending, one for savings, one for investments) and a maximum of two credit cards makes your financial life easier to manage and monitor.

Q5: How should we change our mindset about investment returns, according to the article?
A5: The article advises moving away from the desire to “harvest the highest return” or “make a killing.” This high-risk mentality often leads to stress and significant losses. Instead, we should cultivate a mindset where success is defined as achieving a consistent, long-term return that is positive after accounting for inflation and taxes. This shift prioritizes stability, disciplined investing, and peace of mind over the futile attempt to constantly time the market for maximum gain. The true goal is for money to work quietly and efficiently in the background, providing freedom rather than anxiety.