Exchanging gifts, buying something new for your loved ones and homes is part of the celebration. But, sometimes people tend to overdo it which can affect other financial goals.
Here are three things to do to avoid overspending during the festive season:
make a budget: First, create your gift list and budget. A simple math will tell you how much you can spend and accordingly, it becomes very easy to decide how much to spend on each article, says Shweta Jain, Certified Financial Planner, Founder, Investography, and Author, My Conversation with Money .
“Now, if the gifts are only for family members then you can decide whether you want to spend it on clothes, gifts, toys, house, etc.”
Even in that case, keep a budget handy so that you don’t overspend on articles you don’t need. Make wise shopping choices.
Keep track of your favorite brands: This is actually a very effective way to keep your spending within budget.
“Follow the brands you want to buy, as festival discounts abound,” Jain said. Apart from the festive season, many brands offer discounts at other times of the year as well. Small purchases during such times for festival purpose can help you save a lot.
“But it is important to stick to the budget and the list,” Jain said. Since prices are low, we often end up buying more, justifying them as ‘value for money’. This should be avoided at all costs.
Keep some space for the buffer: “We spend more and then feel guilty. Festivals are all about indulging in,” Jain said, “so, there is no need to feel guilty for spending more during this time of the year. “
The best way to deal with this, Jain explained, is to keep a buffer of 20% in your budget so that even if you spend more, it doesn’t affect your lifestyle or other goals.
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