Personal Finance425 views
With the festive season approaching, you must be busy calculating your finances. A lot of expenses are inbound. You must be busy making changes to the shopping list you chalked out. To top that, you must also be contemplating on what to add and delete from the list to make sure your festive wishes are fulfilled keeping your finances on track.
As the festivals come one after the other, they require a fair amount of money. It is an absolute necessity to plan early so that you would have the money needed to celebrate the festivities without missing out on anything. So, the best way to go for it is by preparing a budget. It will help you smile once the festive season is over. And we want to make the budgeting part a bit easier for you. We have got some hacks and tips in place to make sure you keep your budget game on track.
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Calculate Expenditure & Set Your Shopping Budget
The expenses have the potential to breach your financial boundaries. If you take general shopping into account, you would consider buying clothes, mobiles, consumer durables, jewellery & coins, utensils, fire crackers, fruits, sweets and others. It doesn’t end there, various automobile players, in a bid to tap into the festive demand, roll out attractive discount offers to lure the customers. However, you cannot get too influenced by them. You just need to calculate the total expenditure and set a budget you are comfortable with. As far as a budget is concerned, it can differ from individual to individual. So, plan your finances accordingly.
Manage Finances During Festive Shopping
- Search for discounts at both online and offline mediums.
- Be it through online or offline, make sure you don’t buy on credit.
- If you have been using credit cards for a long time, you must have accumulated reward points. Redeem those points now at various websites/outlets to shop for your favourite goodies. It will enable you to save money for other things.
- Go for cashback offers, if available, to reduce the cost. However, avail them if they are within your budget to stay financially safe.
- Say ‘NO’ to unnecessary expenditure. Ask yourself if you really need it. So even if the credit card offers on mobile phones and washing machines seem really attractive, avoid them so that you won’t fall into the debt trap.
Don’t Buy Too Much on Credit
Even if you decide on using your credit card, keep a track on your expenses. Be sure not to go overboard and become financially weak. And while we talk about making purchases through credit cards, our mind always revolves around the momentary satisfaction they offer. The power of getting anything we want at once. Every festive season, credit card companies put out attractive discount deals to lift their credit growth.
And what many customers do?
They splurge and they splurge even more. It leads to a massive pile of debt that most find hard to repay. The debt piles up even more when you delay the payment of dues and late payment charges, interest and applicable taxes are added to the bill.
You might be able to avoid a fine by paying a minimum due amount, which is calculated at about 5% of the total outstanding balance in a particular billing cycle. However, doing so will let your credit revolve and add the perils of interest and taxes to your credit card account till the time the debt is paid in full.
Resist the Temptation of Overspending
An unnecessary want can cost you a lot of money. People tend to get influenced by the way their peers spend and try to copy them. But in a bid to do so, a lot of them don’t consider the adverse impact it could have on their finances. So, if you are short on the income side and shop excessively for the festivals, you could find yourself in knee deep in debt. To be on the safe side, think long term and think it through before spending on anything.
Part Some of Your Savings to Avoid Being Trapped Under Debt
You can use some savings for shopping too. Spend it on the festive requirements and enjoy a credit-free shopping experience. Don’t use all your savings as they can be important in the long run. Just take out a few bucks to ensure you do not fall into the debt trap. In case you do, the burden of credit would be far lesser.