Are you afraid that the upcoming festive season might take a toll on your savings or may even make it difficult for you to manage your everyday expenses? Planning well and having sufficient savings can save you from this ordeal. With some smart management of finances and money saving tips such as planning your expenses and having a fixed budget, checking multiple credit offers from platforms like Paisabazaar.com before making purchases, etc., you can make the most of the festive season without really burning a hole in your pocket. Here are a few key ways that can help you better manage your finances during the festive season:

5 Ways to Manage Finances During the Festive Season

Given below are 5 key ways that can help you better manage your finances during the festive season:

●      Plan your Purchases and Create a Budget

Try and make a detailed shopping list of everything you need before you actually start browsing online or head out for offline shopping. Include every item that you would require, from gifts and decorations to food for festive dinners. Creating a shopping list keeps you organized and also helps you avoid impulsive buying which is one of the easiest ways to go off your budget. A shopping list can also help you be more strategic in looking for deals, comparing prices and help you make purchases that fit your budget.

Besides, planning your purchases, it is equally important to set a realistic budget and stick to it. When deciding upon a budget, you need to assess your financial situation- that is, your current income, savings and outstanding obligations, in case any. Based on this, you can ascertain the amount of money you can realistically set aside for festive spending without disrupting your financial stability. Additionally, you also need to prioritize your expenses in order to ensure that your financial resources are used for things that matter the most and not being utilized on non-essential purchases.

●      Analyze your Cash-in-hand:

Once you have prepared your shopping list and set aside a budget, you also need to analyze your cash-in-hand that you can use to make these purchases. Starting to save up a few months before the festive season can help you have the required amount of money at your disposal.

●      Big Ticket Purchase Planning:

You can also plan your big-ticket purchases such as electronics, home appliances, etc. that you wish to purchase during the festive season. By planning in advance, you can look out for the best online deals available on various e-commerce websites.

You can opt for various EMI options or consumer durable loans when making these purchases. These options help you make these purchases without straining your finances as these options can help you conveniently repay the amount over a period of time without being overburdened. Moreover, these consumer durable loan and EMI options also often come at low or no cost (No cost EMIs), offer cashbacks, etc.

●      Life Goals Purchasing & Loan Requirements:

You can make most of the festive season by making purchases that meet your life goals – such as purchasing a house, car, etc. on special festive discounts and offers. Even your loan requirements to meet these needs can be met at considerably lower rates of interest, longer tenure, etc. offered during the festive season. Thus, the festive season may in fact turn out to be the best time for you to make these purchases and in fact help you save a good deal of money.

●      Online Shopping and Credit Card Offers

When making purchases, you can look for online deals and festive offers as a lot of e-commerce brands offer discounts and promotions during the festive season such as Amazon’s Great Indian Festival or Flipkart’s Big Billion Days Sale, etc. Moreover, you should also be looking for coupons, promo codes and loyalty discounts to increase your savings.

You can also look for credit and debit card offers on your online shopping spends to make the most of your hard-earned money. A lot of credit cards offer reward points, cashback or discounts on your purchases and choosing and using the right credit card can help you maximize your savings.

Additionally, to best manage your finances during the festive season

  • You need to keep a check on overspending by sticking to your budget and shopping list and avoid impulse buying
  • Monitor your credit score when taking loans or using your credit card to get the best shopping deal as overspending on your credit card could ultimately result in a debt burden and often interest liabilities too. Moreover, maxing out your credit card could increase your credit utilization ratio, which could in turn affect your credit score and your ability to secure additional credit in future.
  • Make special financial plans for travel and vacation for festivals. If you plan to travel or go on a vacation during the festive season you need to set aside a budget, start saving a few months before and make the most of the holiday deals and festive discounts.

By implementing the tips mentioned above, you can better manage your finances and even save smartly during the festive season. Being mindful of your spending, planning in advance and prioritizing what really matters can help you avoid financial strain later on and make the most of the festive season.