Smart tips to help you control festive spending

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Updated: November 02, 2021 11:53 AM

The key to managing money wisely is to chart out a feasible budget for the season in the beginning.

Smart money moves, debt-free, festival season, festive budget, Diwali shopping, credit card, debit cards, credit limit, no-cost EMI option, financial fitness, discounts, cashbackIf you have already overspent, don’t delay taking measures to regain control over your finances.

There are festivities and celebrations throughout the year in India – starting from Navratri, Durga Puja and Dussehra to Diwali, Christmas and the New Year. Gaurav Jalan, CEO and Founder, mPokket says “Our traditions embrace the joy of giving and gifting. But this comes with added expenditure every festive season, which can often burn a hole in one’s pocket.” Therefore, one needs to be mindful and control their spending during this season.

No doubt, at this time of the year we are flooded with offers and discounts, be it online or offline. However, experts point out, one should be mindful of impulsive spending. First and foremost, be aware of your financial situation, accept it and moderate your wants and expectations accordingly.

Jalan, says, “If you have recently taken a large home loan or emergency cash loan, avoid frivolous spending. If your purse strings are already tight, don’t plan a costly week-long excursion or spend money on expensive apparel. You must demarcate need and want-related spending to ascertain tighter control over your expenses during this period.”

The key to managing money wisely is to chart out a feasible budget for the season in the beginning. Usually, people who don’t put down a clear-cut budget, end up spending more than they can afford, which leads them to accumulate debt and then get into a debt trap.

Jalan says, “One should make a list of items as per their level of priority and decide an approximate budget for each item. Do not go overboard with shopping and spending to stay within the allocated budget.”

It’s just as vital to track expenses as it is to keep track of your budget. Hence, he further adds, “one should make it a habit to note every transaction, as well as the mode of payment: cash, credit or debit card. This will allow one to monitor how much money they’ve saved or spent vis-à-vis the predetermined budget.” Additionally, it could also be easier to use a save money app to stay organised and track expenses if you have problems doing so.

Having said so, if you have already overspent, don’t delay taking measures to regain control over your finances. Assess where you have gone overboard – that will primarily help with forming your revised plan of action.

Jalan says, “One should exercise cost-cutting measures to come out of the financial stress. Eliminate unnecessary expenses and stick to an inviolable budget till you recover financially. Cost-cutting will help save more so you can recoup the shortfall caused by overspending. Also, clear all debt in the form of credit card bills or personal loans you may have taken, at the earliest.”

Later, plan next year’s festive spending according to your learnings from this season’s misjudgements to avoid harsh cost-cutting measures yet again.

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