From elaborate feasts, gifts for family and friends, and boxes of sweets for neighbours to a new vehicle or property, there is always a slight uptick in our expenditure during the festive season every year. This increased spending is usually driven by the jubilation that these auspicious festivals bring with them while a host of exciting festive discounts and deals by many brands also prompt us to shell out significant sums.
Due to these factors, we rack up huge bills during the festive celebrations that take a toll on our budget. So, before things go out of hand, it is crucial that you begin managing your finances wisely and compensate for the expenditure. Below are some of the suggestions that can help you mitigate this festive financial stress.
Sit with a calculator
Sometimes, we keep swiping our credit cards for a number of small purchases and later get stunned to see the huge bill. If you have already burnt a hole in your pocket this festive season, then it is time to review your expenditure. Take a calculator and analyse where you have spent your money while making sure that the small expenditures are not neglected. Identify the unnecessary purchases and vow to not repeat them the next month.
Pay off debts
Once you have spent more than you should have, stop spending on non-essential purchases and prioritise paying off your mounting debt. Failing to pay your EMI on time or missing your credit card payment deadline can attract high-interest rates and other charges that can further aggravate your financial situation. Pay off all your debt and then review your bank account statement to plan future spending.
Plan your budget
After you have survived the month despite overspending, plan your budget more wisely. It is advised to first allocate your funds to essential expenditures such as school fees, college fees, and medical bills and give up on things of low importance.