With the festive season upon us, it is very easy to get carried away and overboard with our spending. It feels like every e-retailer is offering consumers huge discounts and sales, making it very tough to avoid splurging. In such a situation, how do you resist temptation? The key lies in pre-planning your expenses. Landing into a debt trap is easier than you think and before you know it, you’ve ended up spending your savings and maximising your cards. Here are some basic tips to help you avoid financial hardships post the festive season:
Make a budget and stick to it
The easiest way to keep your spending in check? Make a budget to manage your expenses so that you don’t feel burdened later. It is fine to spend more during the festive season but try to account for everything, be it a small or a larger expenditure. This exercise will help you to understand if your overall expenses are too high and what you can compromise on.
Keep a track of your spending
GooglePay, PayTM and just online payment modes in general are both a blessing and a curse. When you virtually pay for something, you sometimes forget to add it to your expense list. This makes it harder to keep track of your spending and in the end, you later realise you’ve spent more than your budget. Write down your expenses or use an app to track them so you can be informed once you’ve reached your limit.
Don’t even think of borrowing money
Banks and financial apps make it easy to borrow money by giving us enticing EMI offers. Don’t fall for it as when you borrow money you have to pay it back as well as the interest. It is important to avoid taking loans, even if it is a small amount. It is better to make purchases with money you have on hand versus credit you have to pay off in the future.
Store and reuse
When it comes to décor like lighting and diyas, it makes sense to invest in long-lasting products that you can use year after year. Store them carefully and keep them so you can reuse them later.
Line up your purchases according to their importance
First decide which items are of utmost importance and purchase those. Then consider things that aren’t necessities. It is better to steer clear of impulse spending as that will side track you. Look for deals online and in-stores to save some extra money. Consistently check your budget so you know where you stand.