Diwali is the most extravagant festival. Your expenditure during this festival not only include new clothes and appliances, but you also line up large-scale expenses like renovating your home or throwing a party that’s the talk of the town. So festive season is all about money flowing thick and fast. You may exercise control, and impose a ban on all expenditure, but that may dampen the festive fun. However, with some smart money moves, you can splurge this festive season without feeling the pinch.
Take a look at some smart money tips to follow this festive season.
Make A List Of Expenses
Planning your expenses is the best exercise you can undertake when a festival is approaching. There is a difference between what you need and what is plain luxury and can be avoided. Making a list of the things you need and planning for their funding will help you in budgeting and avoiding unnecessary expenses. It would also be wise to not fall for all the festive discounts and go for the items which are necessary. A good research and comparison of prices each of necessary commodity could help you in getting a good deal.
Use Credit Cards Smartly
Paying for all your festive shopping and dining is made incredibly easy by a credit card, albeit you choose the right one. This means that you must cautiously pick credits cards that have a low interest rate, and money-saving tie-ups with shopping outlets, petrol pumps and restaurants. By accumulating points, you can offset some of your expenses. Similarly, by using a card that is known for its shopping and dining benefits or its accelerated points system, you can save a tidy sum.
Most importantly, use your credit card to pay for big-ticket items on EMI. For instance, if you’ve been meaning to purchase a tower air cooler for your kitchen, by splitting the cost into bite-sized EMIs you can shop a little more as you don’t have to worry about parting with a chunk of your festive budget in one go.
Take A Personal Loan
Personal loans are the easiest way to finance expenses, big and small. Whether it’s to fund home renovation or upgrade your entire family to the gleaming iPhone XS Max, a personal loan is the ideal fit. Also, it is easier to take a personal loan today than ever before. But what’s key is choosing from your options wisely. Not all personal loans are created equal so do your research. Apart from the interest rate look into repayment flexibility and pick a loan with low additional costs, straightforward terms and conditions and value-added perks that help keep costs low, such as a line of credit.
Look Past Discounts and Offers
Be it Dussehra, Dhanteras, Diwali, in the run up to the festive season, it’s easy to give in to the discounts, deals and bundle offers that call your name through billboards, advertisements, newsletters and an inundation of text messages. Here’s a tip to help you cut through the clutter: look past the shiny veneer. It’s tempting to succumb to an impulse purchase when the item in question is 50% off, and there’s nothing wrong in buying an item on sale either. But before you do, compare prices on several platforms and at multiple stores, see what the terms and conditions are, and if there are other deals and discounts that you can combine to get an even better price.
Better still, track prices of items that are on your list beforehand so that when they go on sale you know what your true benefit is going to be. By being ever so slightly methodical about how you navigate the winding maze of sales and festive discounts, you can rest assured that you are saving a bundle.
Rather than imposing a blanket ban on festive shopping, walk the middle path.
The writer is CEO, BankBazaar.com
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.