9 financial tips to navigate the festive season
What is probably the best part of the year is on us – the festive season; Navratri, Dussehra, which will be closely followed by Deepavali, Christmas and New Year. Unarguably the part of the year when people are the happiest… and spend, and spend and spend.
And here lies the crux – experts are unanimous that we Indians may go overboard and spend beyond what financial prudence and even need requires. Luckily, the experts provide us with a guide to ensure that our finances don’t take a hit during this period.
“Indians, like people in many other cultures, do tend to increase their spending during the festive season, and this can sometimes lead to overspending," says Col Rakesh Goyal (Retd), Certified Financial Planner, Founder and CEO, Lets Invest Wisely.
Let’s first take a look at the offers (read discounts) on offer. While there are indeed offers on hand – there is a double-edged sword here.
Take for instance, the shopping festival from an online major which is on right now. “As with most things in life, you could make it a boon or a bane, depending on how you approach it," says Mayank Bhatnagar, Chief Operating Officer, FinEdge.
We illustrate the differential. As a smart shopper, you could use this opportunity to buy that gizmo, car or clothes that you needed anyway, but at 20-30% cheaper.
The problem starts when you start buying things you don’t need, and that too with borrowed money.
“Set clear spending limits on yourself, and do not let your card spends exceed what you can comfortably pay back next month. Avoid piling on BNPL (buy now, pay later) loans or buying things that you don’t really need. Use these offers wisely," advices Bhatnagar.
“Look at the Fine Print," says Goyal. Many offers come with terms and
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