Worried about overspending this festive season? Don’t worry. This is how you can manage your finances without burning a hole in your pocket.
Spending a fortune, particularly during the festive season, is a problem we don’t ignore. It’s easy to get wrapped up in the festivities, leaving your bag strings loose. This season, don’t get discouraged – make sure your budget plans don’t go off track.
Here are some tips for budgeting ahead of time, so you can stop the holiday stress before it even starts.
Before you begin, start with a financial self-assessment. It’s important to know where you stand financially and then figure out a budget that works for you. By setting a limit on all your spending and purchases, you can still enjoy the holiday season without ending up in debt. When you’re contemplating this amount, be sure to only use the specific amount of money you’ve set aside or any additional savings you can find in your budget.
Festivals are all about letting go and splurging a little. However, keep your long-term goals in mind before making hasty purchases. For example, is it really worth splurging on that cute pair of designer heels that you’ll probably wear twice in the next year? Could you, perhaps, do without it or with something less expensive?
The answer here is to just stick to your budget!
Further reading: How to improve your finances
For every small amount you spend, see if you can make an adjustment to your routine daily budget. A little goes a long way! Whether it’s your morning cup of coffee at your favorite neighborhood barista or a lazy brunch on a Saturday afternoon, sacrificing a few of these luxuries will definitely help you in the long run.
Further reading: How Kakeibo’s Budgeting Way Can Help You Save More
A thoughtful, handmade gift is always a better option than an expensive, store-bought alternative. Saving for big-ticket items can also ensure that you don’t deplete your account. Swap an expensive gift for a handmade greeting card or scrapbook, perfect for reminiscing on old memories and lighter on the pocket, too. While they may require some effort, they can result in a marginally larger budget increase.
Don’t bow to pressure from family, friends, or social media. You don’t have to keep up with the Joneses and the Janardhans. Your holiday spending should align with your income, daily expenses, and future financial goals. Once you’ve established a budget, compare costs and get a clearer picture.
Use a spending tracker to help you determine where you’ll spend overall. Today, tracking where you spend your money is easier than ever with your smartphone. Well what are you waiting for? Download the BankBazaar mobile app that takes all the work out of saving here!
Even after careful planning, you’ll be surprised at all the unforeseen costs and expenses that could arise. Set aside 10% of your budget to cover these costs so there are no surprises after all the festivities. It also gives some space to enjoy! That’s where we said it!
Plus, if you buy with a credit card, you can take advantage of additional discounts, rebates, and other rewards. For example, with Finbooster, the free program for life YES BANK – BankBazaar co-branded credit card, you can get up to 10 reward points for every Rs. 200 spent on online dining, online groceries, and online clothing purchases and convert those rewards points into currency that is credited to your savings account. Smart, right? Check your eligibility here. You can get pre-approved and apply 100% online without any income documents.
In closing, don’t let mismanaged finances take the fun out of this special time with friends and family. With just a little careful planning, your holiday spending won’t turn into a long-lasting headache.
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