After the excitement and joy of Diwali, many people find themselves facing the aftermath of festive spending. The celebrations, while heartwarming and memorable, often lead to a financial strain that can disrupt monthly budgets and savings plans. But instead of feeling discouraged, this post-Diwali period offers a valuable opportunity to reset financially and build healthier spending habits.

By assessing expenses, setting new budget goals, and making mindful adjustments, you can get back on track and even prepare for future celebrations. Here are some practical and effective strategies to help regain financial stability and plan ahead for a stress-free festive season next year.

Initially, assess the financial impact of your holiday expenditures by documenting all costs associated with Diwali, including gifts, home decorations, and entertainment activities. Formulate a ‘recovery strategy’ and establish a budget aimed at replenishing your savings by allocating an additional 10-15% of your monthly income.

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“Also, refrain from discretionary spending on entertainment options such as movie subscriptions and dining out for a period of two to three months. Consider selling unused Christmas or Diwali items through second-hand goods applications. Additionally, initiate a new ‘festival fund’ specifically for the next Diwali by setting aside a small amount each month starting now. After the festival, many companies offer special rewards, so utilize cashback applications to help offset some of your expenses, as they often provide enhanced incentives. Prioritize paying off any festive loans incurred during the holiday season,” suggests Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.

“You can track your expenses using smartphone applications like Money Manager, which allows users to categorize their spending and set limits within those categories. Remember that recovering from a financial setback requires time. So, avoid the temptation to resort to drastic measures; instead, focus on gradual progress,” Maurya adds.

Raghunandan Saraf, Founder & CEO, Saraf Furniture, advises people to transform their views of the financial challenges linked to Diwali into a perspective that motivates them to adopt healthier financial practices moving forward.

“Begin meal prepping to reduce your grocery expenses by 40% by creating weekly menus that incorporate leftover ingredients from the festive season. Initially, apply the 72-hour rule when considering unnecessary purchases to safeguard your finances. Participate in local barter circles to exchange unwanted gifts for items that are more useful to you. Plan ahead for future celebrations and take advantage of post-Diwali sales, as retailers often offer discounts during this period. Consider monetizing your festive skills, such as creating rangolis or gift wrapping for events, to earn some extra income. Additionally, aim to lower your bills, particularly after the festival, as service providers often reduce prices to attract customers. Organize a ‘no-spend weekend’ challenge that focuses on free activities and quality family time,” he says.

Digital tools can also play a crucial role in aiding individuals with financial recovery following the Diwali celebrations and should be utilized effectively. It is advisable to establish automatic savings transfers the day after receiving one’s salary, even if the amount is as modest as Rs 500, as this can accumulate significantly over time.

“By analyzing UPI payment history, one can identify typical expenses incurred during the festive season and work towards minimizing unnecessary expenditures. Engaging in social media groups focused on no-spend November can provide valuable ideas and support for those looking to curb their spending. To regain lost savings, individuals might consider micro-investments, such as investing in mutual fund SIPs starting from Rs 100 per day. It is also prudent to disable notifications from shopping applications, as these often promote enticing sales. Organizing expenses can be achieved by utilizing digital envelopes within banking apps for different categories of spending. Additionally, seeking credit cards that offer cashback and reward points for grocery purchases can enhance savings when shopping more frequently. Most importantly, open communication within the family regarding shared savings goals is essential for collective financial well-being,” says Hariom Seth, Founder, Tagglabs.

Aman J Jain, CEO and Co-founder of Doodhvale, says, “Following Diwali, individuals often seek to recuperate the financial losses incurred during the festive celebrations. A concept I frequently reference is ‘fiscal fasting,’ which involves refraining from all non-essential expenditures for a period of 21 days, promoting a mindset of reflection and adjustment. It is beneficial to cultivate ‘mindful money moments’ by intentionally planning daily reviews of discretionary spending.”

Additionally, consider converting unused gift cards into cash for emergencies. Establishing a community exchange program for leftover festival items and decorations can also be advantageous. To reduce fuel costs, carpooling or utilizing public transportation is advisable. Creating various forms of a ‘money vision board’ can help individuals visualize and achieve their financial goals.

“Organizing potluck gatherings can serve as a cost-effective alternative to dining out at restaurants. It is important to recognize that financial strain can impact mental well-being; therefore, prioritizing self-care through free wellness activities, such as walking or practicing meditation, is essential,” suggests Jain.