The festive season will soon be here with the upcoming festivals. Even though this is a joyful and festive time of year, many of us regrettably find that our personal resources are pushed too thin.
This festive season, unchecked shopping cravings lead to reckless purchases and overeating, which disrupts your financial objectives.
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Here are six ways to manage your money if you're planning to take advantage of festive season shopping sales:
1. Do Not Attempt To Surpass Your Friends or Neighbours
You're turning green because your neighbour just acquired a showy new car or just finished a significant remodelling of their home in honour of the festivities. Nowadays, social media is rife with people boasting about their newest purchases, so this tendency isn't simply limited to your neighbours any longer. You go out and blow up some money since you don't like being left behind. Does it sound like you?
Keep in mind that striving to keep up with the neighbours will eventually drive you to distraction. Learn to appreciate what you have while always aiming for more.
Also read: 5 Reasons to Invest in Digital Gold
2. Utilize Credit Card Reward Points to Their Fullest
Simply redeeming the points you've accrued from earlier purchases with your credit card can help you save money. When you use your credit cards at particular retailers and outlets, cashback helps you obtain money in your accounts. The reward points can be used to fund a significant purchase. The reward points will rise as you make additional purchases during the festive season.
During the festive season, plan your purchases so as not to disrupt your financial stability. It is wise to concentrate on need-based shopping and refrain from indulging all of our desires.
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3. Avoid Purchasing Something You Don’t Need
Warren Buffet warned us against buying items we don't need because doing so would force us to sell necessities. This is a challenging scam to avoid with all the deep discounts and internet bargains.
Make sure you don't accumulate items in your life that have little long-term value just because they were inexpensively available. Use your discretion and willpower to only purchase items you would have liked to own, even if they were reasonably priced.
4. Avoid Using Too Much Leverage
The process of applying for loans has never been more straightforward, thanks to the development of FinTech-enabled credit platforms. Many overextend themselves during the festive season, enticed by alluring marketing and the promise of instant fulfilment, only to suffer the price for years. You'd be better off spending what you have rather than being caught in the loan trap. Low on funds? Not to worry. You can get by for a year without spending a lot of money.
5. Reconsider Giving
Think twice before buying expensive dining sets and chocolate boxes for folks only to maintain appearances. Most likely, they will be pushed into a dark corner of their homes or, in any case, "re-gifted" in front. Rethink your present-giving strategy; perhaps a brief note with a personalized handwritten note will be valued far more than hackneyed gift baskets. In fact, during the past several years, many people have begun to reject the "gifting culture" altogether, choosing to convey their best wishes rather than accept or provide any gifts.
Also read: 15 Budgeting Hacks That Can Change Your Life
6. Utilize Windfalls
Use any windfall profits you receive during Dusshera or Diwali responsibly. You can use the money for a variety of wise things. Please use it to settle a loan that has been causing you pain or to protect your family's future by purchasing a term or health insurance policy. At the very least, put the money toward a more critical objective - like studying abroad or buying life insurance - by investing it in a mutual fund for short-term debt. Whatever you do, don't waste it on pointless goods that don't add value because you'll subsequently experience the infamous "buyer's regret" phenomenon.
Have a happy and budget-friendly festive season!
(Check out 'Learn & Grow with Wizely' to read and learn more about investment instruments.)