We will keep the cost under budget this Diwali- rings any bell? From the last festive season? While the festive season is all about happiness and good vibes, people often go off their budgets and overspend. Yes, we get it. It is all overwhelming. Buying gifts, changing home décor, planning big purchases (Sales, right? You will not get that electric heater at 60% off afterward), and there must be many other things on your list. But has overspending ever helped anyone? Well, we are sure that you already know the answer.
Now, you might catch yourself saying- “But Diwali comes once a year! We have to make it big this time.” But didn’t you say something similar last time? The point is that you need to understand and know-how ‘going big’ this season would affect your financial health. Overspending during the festive season is common amongst people. Poor financial planning during festivals can also put your financial plans on hold.
So, let us talk about how you can save money and keep your finances in order during and after the festive season:
You might not be a planner, but when it comes to finances, plans work! Take some time out, make a budget, plan your expenses, and find out how much budget you have and how much you want to spend. We would advise you to write all the details. Be it the number of people you will be sending gifts to or the amount of money you want to spend, note even the minor details!
We do not think we have to explain it to you. However, you must focus on budgeting the trivial things because they add up to become a significant amount in the end. If you are planning any considerable expenditure like renovation or buying a new sofa or electronics for your house, make sure that you do not use the money saved in the emergency fund.
3. Avoid Borrowing
Borrowing money to get your house fixed or give better gifts to friends and family may seem promising, but it can cost you big time. When you borrow money for festive expenses, your financial plans will take a back seat. You will spend at least two or three months to get your finances in shape afterward. So, avoid borrowing money for any circumstantial expenses.
4. No Credit Cards
First, repeat after us, “WHEN I SPEND FROM CREDIT CARD, I DO NOT SPEND MY MONEY, I SPEND THE BANK’S MONEY.”
Yes, it is the truth. Spending on a credit card not only means spending but also means paying extra because eventually, you will pay interest on it. So, avoid using your credit card as much as you can for Diwali shopping.
5. Beware of sales!
We are most certainly not joking about this one! Yes, festive season sales are great, but they are also distracting and push you to overspend. You might not get that refrigerator at 40% off, but buying it on credit might mean spending more than you had initially planned. If you plan to make a big purchase, be sure that you make a plan and do not use your savings money.
So, these were just a few things to keep in mind not to overspend this Diwali. We are sure that you also have some tips in mind. So, head to our Instagram page and share those tips with us!
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