The festive season is on and all we see around us are companies marketing their products and luring us with purchases on credit, easy availability of unsecured credit cards, cheap personal loans, and more. The festival season translates into an opportunity to indulge in shopping extravaganzas. With the abundance of enticing online shopping offers and promotions, it’s effortless to find ourselves tempted to exceed our planned budget. Rampant shopping can, however, put a dent in our finances, thus, prompting the need to put a check on your expenses. There are many ways in which you can rein in the money that is spent during the festive season. These include:
Deciding how much to spend
Establishing a budget is the primary and most crucial stage in holiday season shopping. By defining a budget and adhering to it, you can steer clear of extravagant spending and guarantee that you retain sufficient funds to meet other financial obligations, including rent, utilities, and groceries.
First, list your income and expenses. Calculate your overall income and expenditures. This step will assist you in ascertaining the funds at your disposal for shopping. To gauge your total income and expenses, commence by collecting your latest pay stubs, bank statements, and credit card statements. After obtaining this data, begin categorising your income and expenses. After organising your income and expenses into these categories, you can sum up the figures within each category to approximate your overall income and expenses.
The holiday season is frequently associated with lavishness, yet it’s essential to recognise that you can relish the celebrations without depleting your finances. Concentrate on the aspects that hold the most significance. What truly matters to you during the festive season? Is it about cherished moments with loved ones, the joy of gift-giving, or savouring the festive ambience? Once you identify your top priorities, you can channel your expenditures toward those meaningful pursuits.
Don’t be in a hurry to buy anything and everything
Two effective strategies for securing the best bargains involve exercising patience and conducting price comparisons. Patience allows you to bide your time for opportune sales or promotions, while price comparisons enhance your chances of discovering the most economical price for your desired item. Consider these recommendations for cultivating patience and conducting price comparisons:
- Begin by compiling a list of the items you require or desire. This list will help you maintain your focus and steer clear of impulsive purchases.
- Engage in thorough research to ascertain the typical prices of the items that pique your interest. Utilise online retailers, price comparison websites, and physical stores as resources for this purpose.
- Opt for email subscriptions and follow relevant social media accounts. Many retailers extend exclusive discounts and promotions to their email subscribers and social media followers.
- Implement price alerts to receive notifications when the cost of a desired item decreases.
- Don’t shy away from haggling, particularly when purchasing high-value items. Explore the possibility of negotiating a reduced price with the seller.
Furthermore, it’s worth noting that not all deals possess the same quality. Certain offers might appear exceedingly enticing but could potentially be deceptive, underscoring the importance of conducting research prior to any purchase. It’s advisable to meticulously peruse the fine print and juxtapose various deals before arriving at a final decision.
Do not succumb to discount offers
Impulsive buying and squandering money are closely intertwined. When we succumb to impulsive purchases, we often acquire items that are either unnecessary or beyond our financial means. This behaviour can result in financial difficulties and contribute to wastefulness, as we might eventually discard unused items.
To deter impulsive buying, one effective strategy is to steer clear of time-sensitive deals that entice with lower discounts during the daytime and higher discounts during the nighttime. Such offers are deliberately crafted to exploit our impulsive tendencies, coaxing us into spending more money than initially planned.
Avoid spending using credit cards
Credit cards can facilitate overspending by their ready accessibility and the option to defer full payment. If used carelessly, this convenience can give rise to financial difficulties. Here are several reasons why credit cards can facilitate overspending:
- Disconnected from wallet: When you use a credit card, the money doesn’t physically leave your wallet, creating the illusion that you’re not spending as much as you actually are.
- Purchasing without funds: Credit cards enable you to make purchases even when you lack the necessary funds in your bank account, potentially resulting in debt if not managed cautiously.
- Increased impulsiveness: Research indicates that people tend to make more impulsive purchases when using credit cards than cash transactions.
- Alluring rewards: Credit card companies entice customers with rewards programs designed to promote card usage. While these rewards can be enticing, they can also encourage excessive spending.
Adhering to fundamental financial advice will help you maintain financial peace and fully enjoy festive occasions. Spending during festivals is not inherently harmful; the concern arises when you unknowingly stretch your finances beyond their limits, potentially causing strain on your wallet.
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Updated: 24 Oct 2023, 11:42 AM IST