5 Smart Strategies to Manage your Finances during Festive Season

India is known to be a culturally diverse country and this is why we see so many festivals being celebrated in the country. Our philosophy of “Unity in Diversity” gives us the highest place in the eyes and hearts of people around the world. Wherever we Indians go, we have a habit of colouring the local culture in our own color.

And when it comes to celebrating festivals in the most exhilarating way, shopping remains an inherent part of it. For example, during Diwali, almost all brands and shops launch special offers and discounts to woo customers who then get into a shopping spree. In most cases, people spend what they have actually planned for and spend their savings just for the sake of the festive spirit.

However, financial experts say that due to rising inflation and increasing life instability, it is necessary to stay cautious during shopping. This is particularly true if you have trying hard to save money for other important things.

Though there is nothing harm in spending more than what you plan, the problem arises at a later stage when you realize that other important things are getting suffered because of the spending you did earlier. The key to peace lies in being careful about what you spend and where you spend.

For your reference, we have highlighted some awesome tips on managing your finances, especially during the festive season.

1. Prepare a budget

First and foremost, planning is of utmost necessity, particularly when you have the finance to deal with. This is why it is necessary to have a budget for your shopping plan. Not only for shopping, but you can start with a monthly plan in which a big festival is falling like Holi, Diwali, Christmas, and others. In most cases, people become clueless as to where their money went once the festival is over. This is where a budget helps by telling the amount they have in the beginning and what they have at the end.

As the festive period is primarily about treating, adorning new clothes, and gifts, it is necessary to plan well in advance how much amount you are willing to spend. One option is t make a list of every individual you plan to give a gift, including yourself, and then come up with a budget.

The next thing to do is to explore various ideas in terms of discounts being offered. This will help you find avenues where you should spend your money on things that you are planning to buy.

In addition, if we buy things well in advance, then we are less probably to spend extra as we didn’t have enough space to shop around. But not only preparing a budget will help us in managing the finances smartly, here are the other things that need to be kept in mind.

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2. Watch your spending

Though preparing a budget is the most primary thing, another crucial thing is to watch every single rupee you spend during the season. This would help you stick to the limit that you defined while preparing the budget and keep your spending in control.

Watching down the expenses also helps in guessing your leftover spending limit, so that you can use the residual money for other important things.

3. Avert impetuous shopping

This is one of the most common mistakes people do during the festive season. Due to the easy availability of discounts and deals on every next shop, people are bound to get into shopping for things that may not be necessary at that moment of time.

Stores and online shopping sites launch several offers to boost their sales and once people come to know about these offers, they start shopping unwarily as it is extremely hard to repel such enticing offers!

According to the best broker for trading, it is when we need to control ourselves from getting into such a scenario. This would help us to stick to our budget and manage our finances smartly during this festive season.

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4. Maintain sufficient liquidity

It is strongly recommended not to use funds you have put separately for other regular expenses in your festive season shopping.

If you spend those funds, you are more likely to locate yourself in such a situation where you would find it tough to manage your regular expenses. Also, using emergency funds is a strict no.

5. Shop smartly

According to the top 10 stock brokers in India, one thing you can do is to shop smartly. There are specialized Diwali/Holi fairs or online shopping festivals where you can look for offers on items that you plan to purchase this festive season. This way, you save both the money and the hassle. Also, you can expect the best rates on the products you have in mind. This way of shopping has been extremely popular these days as this is extremely time and money-saving.

The Conclusion

The objective of this post is not to discourage people from shopping but help people embrace smart shopping that won’t break their bank. As festivals are more about joy and celebration, don’t let financial issues hamper the same.