In India, festivals are a time of happiness and togetherness. They are also a time of shopping and spending. People buy new clothes, gifts, sweets, decorations and travel. These things put pressure on the pocket. Sometimes the extra spending also gives financial stress. Experts say if you plan your spending, you can enjoy festivals without worry. This will also keep your future financial health safe.
Atul Shingal, founder and CEO of Scripbox, says that it is important to make a budget before festivals. You should make a list of gifts, clothes, sweets, travel and party expenses. Then decide how much money you will spend. Experts also say that festival expenses should not be more than 10–15% of your monthly income.
Save in advance
To avoid big sudden expenses, experts say you should save small amounts through the year. If you keep money in a recurring deposit or liquid mutual fund, you will have enough money for festivals and will not need a loan.
Control spending and shop wisely
Credit cards and EMIs look easy, but they can be risky. Jet’s co-founder Manish Shara says that 36–48% interest is charged on unpaid credit card bills, which can put you in debt. So, use only up to 30% of the card limit and always pay the full bill on time. Discounts in festivals also make people buy things they don’t need. Experts say buy only if the item will be useful even after six months.
Smart gifts and bonus use
Gifts do not always need to be costly. Handmade things, personal notes or small investments like SIP or gold bonds are also good. If you get a bonus or cash gift, use some part of it for investment, insurance or retirement. After festivals, check where you spent more money, so you can control it next time.