Very often gifting is a function of emotion. Unfortunately, it is also critically dependent on our financial ability. Therefore, even at the risk of sounding a spoilsport, it is essential to list out the ways to avoid overspending on the eve of Dhanteras and Diwali, that represent the pinnacle of festivities in which the largest number of Indians plunge into every year.
The festive season is marked by a sales promotion overdrive by a large number of companies which deal in apparel, consumer electronics, home appliances, gold jewellery, cars and motorbikes, shoes, cosmetics, watches etc. From freebies to no-cost-EMI promotions, they offer myriad allurements to purchase but here are the tips you should watch out for.
Diwali, Dhanteras shopping: Make a budget
The first thing to ensure is to make a budget for gifting and stay within that limit. If you have a few people to buy gifts for, make separate budgets for each of them. It will help you to stay within the overall limit. This will also help you to avoid impulse buying, which is one of the easy traps leading to financial imprudence.
As you keep buying gifts tick off each item from your list and keep a tab of the expenditure you have made. It will help you to stay on track. Another trick is to avoid last minute purchases. Buying stuff at the last minute often creates a situation where one doesn’t get to scout around for the best deal and makes hasty purchases, leading to overspending.
Use credit card within credit limit
While equipping you to spend effortlessly, the credit card also offers a debt trap. One should be acutely aware of the credit limit that the card offers. If you breach your credit limit, you can harm your credit score, which is one of the things to avoid nowadays.
Keep money aside for other obligations
Last but not the least, always ensure that you keep money aside for you investments and other financial obligations such as insurance premia etc. It is easy, especially at youth, to keep spending and eventually land in a situation where you have to borrow to make your investments in recurring deposits, mutual fund SIPs etc.
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