There are festivities and celebrations throughout the year in India – from Navratri, Durga Puja and Dussehra to Diwali, Christmas and New Years. Gaurav Jalan, CEO and Founder, says: âOur traditions encompass the joy of giving and giving. But with that comes additional expense each holiday season, which can often put a dent in your pocket. Therefore, you have to be careful and control your spending during this season.
No doubt, at this time of year we are inundated with offers and discounts, both online and offline. However, experts point out, care must be taken with impulse spending. First and foremost, be aware of your financial situation, accept it, and moderate your wants and expectations accordingly.
Jalan says, âIf you’ve recently taken out a large home loan or an emergency cash loan, avoid frivolous spending. If your purse strings are already tight, don’t plan an expensive week-long excursion or spend the money on expensive clothes. You need to delineate spending related to needs and wants to ensure tighter control over your spending during this time.
The key to managing money wisely is to establish a workable budget for the season early on. Usually, people who don’t budget clearly end up spending more than they can afford, causing them to get into debt and fall into the debt trap.
Jalan says, âYou have to make a list of items according to their priority level and decide on an approximate budget for each item. Don’t go overboard with shopping and spending to stay within budget.
Tracking expenses is just as essential as tracking your budget. Thus, he adds, âyou have to get into the habit of writing down each transaction, as well as the method of payment: cash, credit or debit card. This will monitor how much money they have saved or spent against the predetermined budget. Additionally, it might also be easier to use a money saving app to stay organized and track spending if you have any issues.
That said, if you’ve already overspended, don’t delay taking action to regain control of your finances. Assess where you have gone too far – this will mainly help you shape your revised action plan.
Jalan says, âYou have to take cost-cutting measures to get out of financial stress. Eliminate unnecessary expenses and stick to a tamper-proof budget until you recover financially. Lowering costs will help you save more so that you can recoup the shortfall caused by overspending. In addition, erase any debts in the form of credit card bills or personal loans that you have taken out as soon as possible.
Later, plan next year’s festive spending based on what you’ve learned from this season’s misjudgments to avoid cost-cutting measures once again.