Varalakshmi vratham was first narrated by lord Shiva and was performed by goddess Parvati for attaining prosperity and happiness. Lord Shiva described that those who perform this vratham will be relieved from sorrows and financial troubles, and their home will be filled with harmony and peace.
Later on, Goddess Mahalaxmi who is impressed by the devotion of a devotee named Charumathi appeared in her dream and asked her to perform Varalakshmi vratham to fulfill her wishes. Charumati along with her family and other women of the village performed the vratham. From then onwards women perform varalakshmi vratam for the well-being of their husbands and family members on Friday before the full moon day or on the 2nd Friday in the month of Shravana.

Vara represents boon, and Lakshmi represents the goddess of wealth. Worshipping goddess Varalakshmi on this day is said to be equivalent to worshiping Ashtalakshmi namely Aadilakshmi the protector, Dhana Lakshmi the goddess of wealth, Dhairya Lakshmi the goddess of courage, Sowbhagya Lakshmi the goddess of prosperity, Vijayalakshmi the goddess of victory, Dhanya Lakshmi the goddess of nourishment, Santana Lakshmi the goddess of progeny and Vidhya Lakshmi the goddess of wisdom. In South India, Goddess VaraLakshmi is worshipped by women on all Fridays in the month of Shravana every year and this traditional festival is regarded as one of the prominent festivals of our state.