5 tips to financially prepare for the upcoming holiday season

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August 10, 2022





Hear 5 tips to financially prepare for the upcoming holiday season




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According to the Hindu calendar, the festive season in India begins in the month of Bhadra (August-September according to the Gregorian calendar), with the arrival of Lord Ganesha. The Indian festive season is a series of festivals beginning with Ganesh Chaturthi and counting down to the end of December when we welcome in the new year.

Since buying something new at festivals is considered auspicious, the demand for goods and services is lavish in this period and peaks during Diwali. Before, people used to buy something useful but affordable, such as utensils, clothes, and at most gold as an investment. However, things have changed and in the last two decades, it has become the norm to buy luxury items like smartphones, home appliances, brand name clothes, take expensive vacations, throw lavish parties, and all that! This is mainly because the purchasing power of consumers has increased and the markets are flooded with discounts and offers during the season. However, many people end up stressed, financially drained, or even over-indebted at the end of the holiday season.

To ensure you get the most out of the upcoming holiday season, without starting the new year worrying about holiday loan repayments, it’s crucial to plan your holiday finances now. To help you do just that, here are five tips to prepare financially for the upcoming holiday season:

1. Make a list of the necessary elements:

Most people don’t think it’s necessary to make a list of items they need to buy during the holiday season. However, to be financially prepared for the season, it is essential to make a list of the items to be purchased. Some items cannot be removed or postponed from this list, such as grocery items to make special dishes, candies, desserts, etc., new clothes, gifts for family and friends, etc. Make sure you make a detailed list. For example, when listing gifts, be specific and write the names of the people you want to buy gifts for. You should also list any large items you are considering purchasing during the festival sales, such as jewelry, deep fryer, washing machine, car, etc. It would be helpful if you made a separate list of items you might consider buying if you get a good deal or would like to window shop.

5 tips to financially prepare for the upcoming holiday season

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2. Set a holiday budget:

Making a list will give you an idea of ​​your possible expenses. Now the next step is to verify your bank account and set a budget. Decide how much you are willing to spend on upcoming festivals. Once you know how much money you need, you can further divide the budget into different categories. You need to set a budget for every little thing. For example, how much you want to spend on Diwali gifts (limit price for each gift), grocery budget for each festival based on your menus and the number of guests you will invite, clothing budget, budget for an electronic item you might want to buy, etc.

3. Set up a separate bank account:

Although the holiday season is just around the corner, you still have plenty of time to plan your finances for big expenses. It’s a good idea to open a Savings Account dedicated to the holidays. You can start saving money in this account for your festival expenses or to make large purchases that would otherwise be unaffordable. Setting aside some funds each month will help you enjoy the festivals without any financial stress. Plus, since you’ll be spending on your festival expenses from this account, you’ll be able to better track your expenses, helping you stay within your budget and avoid wasting.

4. Take advantage of offers and discounts:

Most physical and online stores present attractive sales every holiday season. To attract consumers, they aggressively promote offers such as deep discounts, cash back, flash sales, free home delivery, trade-in offers, etc. Aside from this, banks and other financial institutions also lure consumers with offers like free EMI. , zero processing fees on durable consumer loans, etc. Therefore, the festive season is a great time to make big purchases. Of course, before making purchases to save some money, it is essential to analyze your needs and buy the item if you really need it. It is also advisable to take advantage of the online platform and compare different merchants to ensure that you are getting a quality product at a reasonable price.

5. Say “NO” to personal loans:

As discussed above, various financial institutions offer durable consumer loans, personal loans, instant loans, payday loans, etc. with zero or discounted processing fees and/or no cost EMI (zero interest loans). These loans make unaffordable items seem affordable with monthly EMIs, and honestly, it’s quite tempting to take advantage of these loans when you’re looking for something that’s already at the best price. If it is something that you absolutely need, then you may want to consider taking out a loan. However, it is not recommended to do your holiday shopping with the help of a loan. You should buy luxury items only after regularly saving money for them. But using loans for items you don’t really need can put you in over-indebtedness.

In conclusion…

Festivals are supposed to bring joy and not a financial burden. Financially educated and disciplined people know when to spend and how much to spend. If you don’t want to spend next year worrying about insufficient savings and loan payments, make your holiday budget today and spend wisely this season. Don’t panic if you go a little over budget during a festival due to unexpected expenses or emergencies, as you can balance it at the next festival. But don’t be tempted to take out a loan to splurge during the festivals, as it can affect your finances and land you in a debt trap that becomes difficult to get out of.

A cordial greeting,
ketki jadhav

content writer

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