Set up the lantern, light up and fill our lives with sweets: it’s that time of the year again. Let’s see how we can manage our money smartly this festive season!
Every year, the country is enveloped in a blanket of celebration, laughter, and togetherness that enthusiastic atmosphere. However, the season of lights 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.
– 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.
– During festive seasons we generally skip our savings and investments due to high expenses in these months so, in order to avoid that, you should keep your investment money aside at the start of the month so that they don’t get used up.
– If you feel your budget is very tight you can always adjust your investment amount according to your priorities.
Track Your Spending:
– While spending money, don’t forget to note down each expense. It will help you adhere to the threshold 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 buy only those things which you need or you have planned for.
Select the right spending tool, and 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 minimize 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.
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.
– In case you haven’t planned and you are currently in need of funds for Diwali celebration then you can you can #UpgradeYourZindagi with LXME Personal Loans.
Start Investing for Your Future:
– This Diwali, 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!
For your future money management, we are here to help you to start your investment journey! Check out LXME Goal-based Portfolios which are diversified, well-researched, and curated by experts.
And also try out our super easy calculators such as LXME Goal Calculator
Let us know in the comment section, What money hacks do you use during festive season?
Comment “🙌” if you find these hacks useful.
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