To fill a jug and make sure it stays full while you’re not using it, the first thing that’s needed is to seal the leaks. So, to have some money left for investments, you need to limit unnecessary spending, so you can save more.
“Managing finances, especially during festivities, can be challenging, as we tend to get caught up in ourselves. However, being a little careful can help pull the strings and thus enable you to manage your money in a much better way and of course enjoy the festivities,” by Aditya Damani, founder of Credit Fair.
Damani suggests the following steps to control your spending incentives:
Distinguish between Need Vs Want
The first step towards reducing your desires to spend is to focus and distinguish between needs and wants. If we need something – it means that perhaps we can not do without it. On the other hand, the word ‘desire’ means that we can do without it; With these two aspects in mind – focus on what we need and then proceed to purchase accordingly. Changing our mental perspective regarding buying is critical.
Shopping Loan, But Should We?
There will also be loan offers coming to buy, which is the best way to borrow to buy, if you are really intent on shopping and probably have a long list of things to buy or things to give as a gift, it is recommended that you opt for the no-cost EMIs that are available.
How to manage your EMIs, debts to save money during the festive session
Use your credit card wisely
If you are a seasoned shopper, you must have accumulated a lot of reward points through your credit cards. Those who haven’t flaunted their reward points on things like promotions or travel, may want to consider the points while shopping for their holidays or festivals this year.
Managing finances during festival season can be stressful at times. This is because we often end up spending more than we think. Let’s take an example here – suppose an individual has spent Rs 1 lakh on his credit card and does not have enough cash to pay the bills. So, how does he behave in management? Well, in such a case, one can either choose to pay the minimum amount owed and then gradually pay off the debt at a much higher interest – say about 36 percent. On the other hand, one can choose to avail a personal loan for debt consolidation loan with interest ranging from 14 to 16 percent, clearing all the accumulated debts.