Celebrations and Festivals are a never-ending thing in India. As we stand in the second half of the year, we are to witness several festivals as 2024 rolls ahead.  What truly sets India apart is that Indians celebrate every holiday with immense grandeur and enthusiasm.

As the festive season approaches once again, it brings a time of joy, happiness, and togetherness, as well as a lot of expenses. Yes! It's true. Festivals call for decorating houses, exchanging gifts and buying new clothes for everyone in the family.

So you need to ensure you are not overspending or making impulse purchases because of the festival season.

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The last quarter of the financial year is packed with major festivals like Navratri, Dussehra, Diwali, and Christmas. E-commerce platforms and consumer brands seize this opportunity to encourage spending.  Brands will now aggressively attract consumers with irresistible discounts.

It’s easy to get caught up in the festive excitement and overspend, only to feel the impact when bills start piling up. But, this year can be different. With a well-thought-out financial plan and disciplined spending, you can enjoy the festivities without overstretching your budget.

Prioritise Your Purchases

Rather than indulging in unnecessary shopping, start by listing the essential items you need for the festive season. Some items like groceries for special festive dishes and new clothes are unavoidable so creating a budget for these will give you an idea of the amount you need to set aside for your spending.

When you are planning your gifts, make sure to prepare a name-wise list and budget for gift items. If you have this planned ahead of time, you won't be spending extra while buying the gifts.

Avoid Overextending Yourself

There will be a lot of people around you who will opt for extravagant celebrations. What's important is that you should not be driven to spend more just to match them. You must resist the urge to spend just because of peer pressure.

Everyone's financial situation is different, so it’s important to stick to your budget. Be mindful of your spending, prioritise essential items, and avoid unnecessary material purchases.

Approach Sales and Offers Smartly & Track Your Spending

While festive sales can offer great bargains, it’s important to distinguish between genuine deals and marketing tactics. Always compare prices and check reviews before making a purchase.

Even if you don't plan an entire budget, make sure to keep track of your spending. Record all your purchases on paper or use an expense tracking app. This will help you avoid unnecessary expenses.

Avoid Unnecessary Borrowing

If you must take a loan for large purchases, include the interest in your budget. Avoid unnecessary loans and prevent falling into debt. When using credit cards, pay off the full amount due after the interest-free period.

Don’t Skip Your Monthly SIPs & Invest during the Festive Season

During the festive season, it’s tempting to reduce investments and redirect that money to spending. However, always ensure you’ve set aside money for investments before spending.

It is very common for Indians to buy gold and silver on festive occasions like Dhanteras and Akshay Tritiya. Many Jewellers offer discounts on making charges and even on gold.

Even the Indian tradition calls for you to invest money during the festive season. Hence, you must check out multiple jewellers and make sure to get the best deal.

So, while you spend during the festive season, your investment is also taken care of.

Regular investments are key to long-term wealth creation and achieving financial goals. Continue your regular investments as planned, and if possible, make a one-time investment in mutual funds, stocks, or gold during the festive season.

Conclusion

By planning carefully, setting a budget, and sticking to it, you can enjoy the festive season without financial stress. Regularly check your budget, track your expenses, and resist impulse shopping. If possible, consider investments that can ease your financial burden in the future.

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