Executive Summary- The festival season brings joy and happiness. It is important to celebrate in a way that our personal finances stay in order. We should stay within the set budget, spend wisely, make use of offers, use the bonus wisely and strengthen the financial plan.
The festival season is here. It is time for us to celebrate and enjoy rituals and festivities with joy. We also buy new clothes, new items, go on holidays and give gifts. We do not want to dampen celebrations but we should be realistic while celebrating. For many, Diwali and Dhanteras are now increasingly synonymous with too much spending. The companies also have a field time and advertise with a frenzy. Moreover, now we can spend even more sitting at home through online portals. Year on year, number of online portals holding annual sales around the festival season increases and the total turnover also increases significantly. Flipkart, Amazon and Snapdeal have already had their Diwali sale offers.
It is easy to be lured by these offers. Here are 5 ways to make sure your personal finances do not go awry-
It is easy to be lured by these offers. Here are 5 ways to make sure your personal finances do not go awry-
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1) Set budget limits – It is easy to go overboard buying stuff and gifting loved ones. Fancy display merchandise and enticing offers make it difficult to not to buy. But you must think rationally. Set a limit on how much you can afford to spend for the festival and ensure you don’t go beyond the limit. If you think, leaving all the cards at home will help,do that. You will be helpless even if you feel like splurging on the latest iPad! One month down the line, you would be more happy that you had the financial discipline than if you have the latest gadget or accessory. Bringing a balance between things giving us immediate gratification and things important for a stable financial life is important.
2) Make best use of offers – All companies, malls and online stores come up with schemes and offers. You should list down what you need to buy and watch out for offers in these products.
HP is offering benefits on HP Pavilion and HP Envy notebooks. Maruti Suzuki is offering cash discounts and exchange discounts on the petrol version of 8 of its models. LG Appliances have interesting offers on refrigerators, water purifiers and television sets.
Buy clothes, appliances, things that you NEED and not WANT. It will be nice if you send gifts to orphanages and old age homes rather than spending no more and more things for yourself.
2) Make best use of offers – All companies, malls and online stores come up with schemes and offers. You should list down what you need to buy and watch out for offers in these products.
HP is offering benefits on HP Pavilion and HP Envy notebooks. Maruti Suzuki is offering cash discounts and exchange discounts on the petrol version of 8 of its models. LG Appliances have interesting offers on refrigerators, water purifiers and television sets.
Buy clothes, appliances, things that you NEED and not WANT. It will be nice if you send gifts to orphanages and old age homes rather than spending no more and more things for yourself.
Enjoy the festive season – follow a budget, spend quality time with friends and family and buy only what you need.
3) Use bonus wisely – Many of us get a bonus during Diwali. You can make better use of it rather than spending it on luxury goods or a fancy holiday. You can use it to pay off debts. You can replenish your emergency fund. Check if your insurance cover is adequate. If not, you should buy some. Insurance is a good gift for yourself and the family. Invest some of the bonus in long-term investments to reach your financial goals. You can use some of the bonus to invest in tax saving instruments so that you can maximum use of taxation deduction limit.
4) Spend Wisely – You can go on family vacations. You can spend money on workshops or training. You can invest in fun activities that you can participate in with friends and family. You can invest in good books, music and movies. You can use money to appreciate art and culture. You can add meaning to your life with such splurges rather than just consumerism.
5) Strengthen your financial plan – Many times, we are not able to follow the financial plan. We may allocate less funds to investments or we anticipate additional expenses. Revisit the financial plan and use some of the money you might have allocated to Diwali spending or the bonus to get the plan on track. Tweak your portfolio to optimise returns. In this way, even if there are any emergencies in the future, your financial plan will not be adversely affected. This will ensure your financial goals are on track.
4) Spend Wisely – You can go on family vacations. You can spend money on workshops or training. You can invest in fun activities that you can participate in with friends and family. You can invest in good books, music and movies. You can use money to appreciate art and culture. You can add meaning to your life with such splurges rather than just consumerism.
5) Strengthen your financial plan – Many times, we are not able to follow the financial plan. We may allocate less funds to investments or we anticipate additional expenses. Revisit the financial plan and use some of the money you might have allocated to Diwali spending or the bonus to get the plan on track. Tweak your portfolio to optimise returns. In this way, even if there are any emergencies in the future, your financial plan will not be adversely affected. This will ensure your financial goals are on track.
Festivals are occasions of joy and happiness. But if you do not plan your finances and celebrate prudently, you can get into a financial mess. You will definitely feel more happy and positive if you had planned a Diwali budget and stayed within the budget. You will be content that you spent quality time with family and friends and did your bit for the community.
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