August 10, 2022
Hear 5 tips to prepare financially for the upcoming holiday season
According to the Hindu calendar, the festive season in India begins in the month of Bhadra (August-September according to the Gregorian calendar), with the arrival of Lord Ganesha. The Indian festive season is a series of festivals beginning with Ganesh Chaturthi and counting down to the end of December as we welcome in the new year.
Since buying something new during festivals is considered auspicious, the demand for goods and services splurges during this time and peaks during Diwali. Previously, people bought something useful but affordable, like utensils, clothes, and at most gold as an investment. However, things have changed and over the last two decades it has become a norm to buy luxury items like smartphones, appliances, designer clothes, take expensive vacations, host parties sumptuous, and so on! This is mainly because the purchasing power of consumers has increased and the markets are flooded with discounts and offers during the season. However, many people end up feeling stressed, financially drained, or even in a situation of over-indebtedness at the end of the holiday season.
To make sure you get the most out of the upcoming holiday season, without starting your new year worrying about festive loan repayments, it’s crucial to plan your festive finances now. To help you do just that, here are five tips to prepare yourself financially for the upcoming holiday season:
1. Make a list of items needed:
Most people don’t think it’s necessary to make a list of the items they need to buy throughout the holiday season. However, in order to be financially ready for the season, it is crucial to make a list of items to purchase. Some items cannot be eliminated or carried over from this list, such as groceries for making special dishes, candies, desserts, etc., new clothes, gifts to family members and friends, etc Be sure to make a detailed list. For example, when listing gifts, be specific and write the names of people you want to buy gifts for. You should also list the big items you plan to buy during the festival sales, such as a piece of jewelry, a deep fryer, a washing machine, a car, etc. It would be helpful to make a separate list of items you might consider buying if you get a good offer or want to window shop.
2. Make a party budget:
Making a list will give you an idea of your potential expenses. Now the next step is to check your bank account and make a budget. Decide on the total amount you are willing to spend on upcoming festivals. Once you know how much money you need, you can further divide the budget into different categories. It is necessary to establish a budget for every little thing. For example, how much you want to spend on Diwali gifts (price limit for each gift), grocery budget for each festival based on your menus and the number of guests you will invite, clothing budget, budget for an electronic item that you may want to buy, etc…
3. Create a separate bank account:
With the holiday season fast approaching, you still have plenty of time to plan your finances for big expenses. It is a good idea to open a Savings Account dedicated to the end of the year celebrations. You can start saving money in this account for your festival expenses or for big purchases, which would otherwise be unaffordable. Putting money aside every month will help you enjoy festivals without any financial stress. Plus, since you’ll be spending your festival expenses from this account, you’ll be able to better track your spending, which will help you stick to your budget and avoid splurges.
4. Take advantage of offers and discounts:
Most online and physical stores offer attractive offers every festive season. To attract consumers, they aggressively promote offers, such as deep discounts, cash back, flash sales, free home deliveries, trade-in offers, etc. Apart from this, banks and other financial institutions are also enticing consumers with offers such as no-fee EMIs. , zero application fees on sustainable consumer loans, etc. The holiday season is therefore conducive to major purchases. However, before shopping to save money, it is essential to analyze your needs and buy the item if you really need it. It is also advisable to take advantage of the online platform and compare different merchants to ensure that you are getting the quality product at a reasonable price.
5. Say “NO” to personal loans:
As mentioned earlier, various financial institutions offer sustainable consumer loans, personal loans, instant loans, payday loans, etc. to zero or reduced processing fees and/or no-cost EMIs (zero interest loans). These loans make unaffordable items affordable with monthly EMIs, and honestly, it’s quite tempting to take advantage of these loans when you’re considering something that’s already at its best price. If this is something you absolutely need, then you might want to consider going for a loan. However, it is not advisable to do your festive shopping with the help of a loan. You should buy luxury items only after you have regularly saved money for them. But availing loans for items that aren’t quite necessary can put you into over-indebtedness.
Festivals are meant to bring joy, not a financial burden. Financially competent and disciplined people know when to spend and how much to spend. If you don’t want to spend next year worrying about insufficient savings and loan repayment, make your festive budget today and spend wisely during the season. Don’t panic if you go a little over your budget during a festival due to unforeseen expenses or emergencies because you can balance it at the next festival. But don’t be tempted by a loan to splurge during festivals as it can affect your finances and land you in a debt trap that it becomes difficult to get out of.