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Setup the Christmas tree, bring out the sweets, and wrap up the gifts: it’s that time of the year again. Only, this time you won’t go broke!

Every year, the country is enveloped in a blanket of celebration, laughter, and togetherness that enlivens the atmosphere. However, the season of giving is also known as the season of spending. Between decor, food, and gifts, it’s easy to lose track of the amount you end up spending. In order to avoid burning a hole in your pocket, you must plan and create a budget to curb expenses. There are various factors to keep in mind while creating a festive budget. Here are a few important points to remember.

List Down All Expenses and Decide on Your Spending Limit: A good way to begin your budgeting is to consider all possible expenses you are likely to incur during the festive season. This should include everything from gifts, decorations, food expenses, charity (if any), and so on. Be sure to account for every tiny expense in your budget so that you are not left surprised by the end of the festival. Once you have listed all your potential expenses, it’s time to set limits on your spending. Assign funds to each category so that the money is properly divided. Be sure to prioritize your categories correctly so that the maximum amount can be assigned to the highest priority. This can be helpful even while brainstorming for gift ideas. When there is a set budget, you will automatically eliminate gifts that are above budget.   

Track Your Spending: While spending money, don’t forget to note down each expense. It will help you to adhere to the threshold that you had set while making the budget. Tracking down the expenses also helps in estimating your remaining spending capacity, so that you can use the remaining money for high priority things.

Avoid Impulsive Shopping: You may get things at great discounts, as the festive season is best for business houses and brands to make money. To increase their sales, all the businesses (both stores and shopping portals) come up with many offers like a festive season sale. Once you see offers you start shopping in an impulsive way because at that time it is very difficult for anyone to resist the temptation of shopping. However, you should ideally avoid getting into such a situation.

Maintain sufficient liquidity: Keep your spending fund separate from the regular liquidity that you maintain in daily life. If you use the daily liquidity to spend during the festive time, you may later find it difficult to pay for your regular expenses. Also, try not to dig into your emergency fund to pay for festive expenses.

Select the right spending tool, look out for deals, discount codes, and cashback offers: Yes, shopping requires planning! While spending during the festive period, it’s important to use the right spending tool. Though you may get attractive offers and discounts on a credit card, you must ensure not to breach your budget. You can also look for offers on debit card payments — in doing so you will minimise the chances of accumulating unplanned debt. Also, if you are planning to use the EMI facility available through your debit or credit card for certain major purchases, do check out the charges attached with it before taking the plunge.

Star Investing for Your Future: This Christmas, instead of spending, why not make a move that will help you secure your future? This festive season, start an investment for your future, as this move can positively impact your finances for years to come!

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