How to manage your budget during this festive season?(4 min read)
The festive season is setting up, starting with Ganpati arrival followed by Navratri, Diwali, and Christmas. We all want to celebrate these festivals with our family. Many of us are planning months in advance for festivals. We also have a budget for traveling and spending. During this festive season, we must have to ensure that our spending is within our budget to avoid the debt trap.
This is the time when all companies are throwing offers of big discounts, online sale, buy-one-get-one-free to lure buyers. We should ensure that we don’t go overboard with our spendings that we end up in debt.
Below are the things you must do to ensure you enjoy festive season without falling into debt trap.
#1. Apply 5 Why rule of spending
If you have read my article on 5 why of spending you know what you have to ask yourself before buying anything. The rule says to check whether you actually want the thing you are buying. Go deep into the root to check are you spending your money on the right things or not. Don’t just buy because it’s available at some discount or on EMI. Distinguish between need and wants. Avoid buying things that you don’t want. This will save you a lot of money.
By applying 5 WHY method we will come to know the exact reason for our spending. Knowing the exact reason will make us more aware and conscious about our spending.
#2. Create a shopping list
You should ideally make a shopping list for the festive season. Sticking to that list can save you many bucks by reducing your chance of impulsive buying. Impulsive buying is one o the main reason for going overboard on your budget. It is also recommended to have a separate budget for the festivals so that you don’t end up compromising your need and at the same time you can avoid debts. If you have your shopping list created in advance you have enough time to look for best deals and discounts. You can even buy a thing in advance. This also helps to save you from paying higher prices due to festival season.
Creating a shopping list not only helps you to save money but also helps you to buy efficiently.
#3. Avoid luring offers
Discounts are obvious during the festive season. But are these discounts are real? You may have noticed the price of certain products before the discount offer is X. During the discount offer the price of the same product will change to X + 2. Then they are offering a discount of 1. So net-net they are not giving any discount, on the contrary, you will end up paying more money for the same product without an offer. To do this you may note down the price of the product you intend to buy today and compare the price when an offer is announced.
#4. Don’t borrow
It is always recommended to enjoy festivals from the savings or specific budget. But many of us don’t save up and have a habit of seeking instant gratification. Then it’s imperative to borrow. Some of us take a route of salary advance or spend through credit card. It is not advisable to take salary advance just to celebrate festivals. Because it will impact your future month’s budget. If we have used our credit cards and are not able to pay the outstanding it will attract three percent interest per month. Credit card usage required discipline, otherwise, it will sink you in a huge debt.
#5. Reason for season
Keep the original festival spirit in your mind. Don’t get carried away with the offers and show off by others. It’s always good to spend time with your family and friends instead of going to the mall for unwanted purchase.
#6. Buy value Gift
Festivals are empty without gifts and rituals. During the festive season, we buy and give gifts to our near and dear ones. Material gifts may look and feel good for a short while, but not worthy. Instead, give a gift that is worthy of lifetime. Gift a silver or gold coin to your family members which they preserve for a long time and its value will also increase.
Follow this simple yet effective steps to ensure you have a happy festive season.