Diwali 2023: How can millennials be more financially wise this festive season? Here are 4 ways

This could be a disincentive for investors, especially those still accumulating capital. Keep in mind, however, that impulse buying can easily derail your financial goals. Choosing prudent financial choices instead of splurging during the festive season can bring immediate benefits to individuals and families and ensure a more promising future. The following reasons explain why.

• Celebrations often put a strain on finances as people tend to allocate substantial funds for gifts, food, travel, and various festival-related expenses. This tendency to spend can lead to financial strain and accumulated debt. However, by making smart financial decisions, individuals and families can avoid these challenges.
• In addition, festivals offer an opportunity to save money, with many businesses offering discounts and promotions. By taking advantage of these offers, individuals and families can cut costs and make savings.
• In addition, festivals can act as an opportune time to invest money. The stock market often booms in post-festive periods. By seizing this moment, individuals and families can invest and take advantage of the market rally, yielding returns on their investments.

Consider these guidelines to make smart financial choices amid festive occasions:

Have a budget in place

Before you go on a spending spree, establish a budget for your festival-related expenses. This proactive approach will help you stick to a financial plan and stay clear of unnecessary overspending.

Start the budgeting process by measuring your income. Assess the expected funds you will receive during the festive season, including salary, wages, bonuses, and any other sources of income. Next, calculate your expenses, including things like gifts, food, travel, decorations, and other related expenses for the festive season.

In the next step, allocate your expenses wisely. After you have compiled a comprehensive list of your expenses, categorize them into separate groups, which may include gifts, food, travel, decorations and other relevant categories. Prioritize your expenses, recognizing that not all are equally important. Make sure you allocate your funds to prioritize the expenses that are most important to you. Finally, assign specific amounts to each category, keeping in mind that the total should not exceed your projected income.

Compare with smart shopping

Before making any purchases, especially during festivals, it is essential to explore different options. Many businesses offer discounts and promotions during these festive periods. By making price comparisons, you can realize savings on your spending.

For smart shopping, compare the prices across different stores carefully. Resist the impulse to buy at the first store you come across. Instead, visit multiple stores, check prices, and make an informed decision. Additionally, extend your comparison to online platforms, as they often present more competitive prices than brick and mortar establishments. Take advantage of the opportunity to compare prices among different online retailers to find the best deal.

Before completing a purchase, take time to read product reviews from other customers. This step ensures that you make informed decisions, steering clear of products that may lack quality or not meet your expectations.

To stay informed about discounts and promotions, consider subscribing to email lists. Many businesses extend exclusive offers to their email subscribers, providing a way to access discounts and special promotions from your favorite establishments.

Look for discounts and promotions during festivals

Many businesses extend discounts and promotions during festivals. Capitalizing on these offers can result in significant savings on your spending. Effectively leveraging discounts and promotions during festivals becomes seamless with careful planning. Start by identifying businesses that offer these benefits by checking their websites, subscribing to email lists, or following them on social media. Before you go shopping, create a list outlining your essential purchases, which will make it easier to stick to your budget and prevent fake purchases.

Avoid shopping outside of normal hours when businesses are less crowded, giving you the opportunity to compare prices at a fast pace. Explore the coupons available online, in newspapers, or magazines to maximize savings on your purchases. Finally, don’t hesitate to inquire about discounts. Many businesses are happy to offer discounts if you ask for them, so if you see something you want, don’t hesitate to ask for a discount.

Turn off invitations to frivolous parties

Do not hesitate to decline invitations or requests if they do not have your financial means. It’s also perfectly acceptable to go without saying when it comes to buying gifts for others when you’re working with a limited budget. Above all, having the ability to decline is vital to protecting your financial stability and emotional health. If you constantly agree to commitments that are beyond your means, you may find yourself in debt or constantly feeling overwhelmed and stressed.

It is vital to consider your spending and financial options when the Christmas season ends. This allows you to spot areas of overspend, allowing for adjustments in the year ahead. Begin the review process by gathering all relevant financial documents from the Christmas period, such as bank statements, credit card statements, and receipts. With these statements in hand, take the time to categorize your spending, offering a clear picture of where your money went. After categorizing your expenses, assess what worked well and identify any instances of overspending.

Reflecting on your spending and financial decisions after the festive season will allow you to learn from any disappointments, paving the way for improved choices in the coming year. This proactive approach ensures alignment with your financial goals and protects against unnecessary spending.

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Updated: 12 November 2023, 09:21 AM IST