The festive season has started in the country with Janmashtami and Ganesh Chaturthi. Markets are buzzing, and mega sale events like ‘Amazon Great Indian Festival’ and ‘Flipkart Big Billion Days’ are about to kick off on the e-commerce platform. Attractive discounts on everything from TVs, smartphones and clothes to home appliances are enticing everyone to shop.
However, during this sale period, the lure of random discounts and offers often disrupts our budget. By the time the holidays are over, pockets are empty, and a big credit card bill is staring us in the face. If you want to enjoy the festive season to the fullest while keeping your bank balance safe, these five smart tips on utility and finances will come in handy.
Set a festival budget before shopping
The golden rule when it comes to sale discounts is to set your limits. Create a fixed budget before you start shopping. Set spending limits for different categories like gifts, electronics, clothing and home decor. Having a clear budget figure helps you avoid impulse purchases.
Understand the math behind No-Cost EMI’ hidden charges
A ‘no-cost EMI’ option often looks very attractive when buying expensive items. However, keep in mind that even if you are not charged interest, banks charge a processing fee – plus 18% GST. Additionally, banks often offer a flat instant discount of 5% to 10% if you pay the full amount upfront instead of opting for no-cost EMI. So, always calculate the difference between the two options before choosing the EMI.
Use credit card offers wisely and sparingly
During the festive season, banks offer instant discounts of up to 10% on credit card purchases. While it’s wise to take advantage of bank discounts and rewards points, you should only swipe your credit card for an amount that you can pay off in full when the bill comes next month. Just “never make the mistake of paying the minimum amount” as this can attract annual interest rates of 36% to 42%.
Avoid the traps of Buy 1 Get 1 and Flash Deals
Offers like 30-minute flash sales or “buy 1 get 1 free” deals incite FOMO (fear of buying) among consumers. Instead of swiping your card immediately after seeing an offer, ask yourself: “Do I really need this?” Avoid buying just because something looks cheap.
Check actual discounts using price trackers
During sales, companies often increase the MRP (Maximum Retail Price) and then offer huge discounts on it. So, before buying anything, don’t forget to compare the price of the product by using price tracker tools or checking various e-commerce sites. This will help you determine if you are really getting a discount or not.
After all, the true spirit of the holiday season lies in spending time with loved ones, not overspending and sinking under a mountain of debt. By exercising a little financial discipline and following these smart tips, you can ensure that your celebrations are both fun and pocket-friendly.