Smart money moves for a debt-free festival season

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Festive times is considered a good time for Indians to spend money, especially to buy new things. The Navratri market showcased good performance, and the Indian market is looking with hope at Diwali.

While there are advice and articles on how and what to buy this festive season. But when it comes to smart spending in the festive season there is not much similar information. There are obvious reasons for it.

One, they want you to spend as much money as possible and buy as many products like theirs. Secondly, this is a time to reap profits for them, as it is the time when everyone comes to buy, either influenced by the culture or by the company.

As a result, companies and retailers declare attractive discounts and offers. Attracted by this, you will spend beyond your capacity.

This kind of purchasing can lead to severe unbalancing of your budget, especially if you belong to the middle class.

So, if you want to spend smart, buy the luxuries you wish and also protect your family budget, here are a few pieces of advice.

First of all, plan your festive budget. Create a list of planned expenses and spending limits. As a result, you will have more time searching for discounts and offers on various platforms.

The most important thing to consider while planning is to avoid overspending.

Overspending is as dangerous as spending with no budget at all. Overspending in buying unnecessary items upsets your budget, even defeating the purpose of budgeting itself.

So, if you plan to frame a budget, don’t give in to over-spending because you saw an attractive product you will never use.

After you have drafted your budget, the next thing is to spend, this time use a debit/credit card. Whenever festival season is around the banks will offer discounts, no-cost EMI and cashback on every use.

Details may vary but, you can see yours on your respective provider’s website.

Even if your card company plays Scrooge, they will have to give you reward points on every purchase. Redeeming these points before their expiry will help to lessen the financial strain in the future.

If a home renovation is in your plan or similar expenditure which requires you to purchase a loan, check every detail related to it and compare it. Look and compare for best interest date, loan tenure and other related factors.

For other big-ticket purchases, a personal loan is a good option. Loans can be repaid using credit cards, more specifically when you can convert them into EMI.

Now we have talked about the positives of using credit cards. But just like anything, use it wisely. If you have a pre-approved loan and a good repayment history, you can get instant loans through credit cards.

Some of them even provide no-cost EMI to pay for a product in an instalment model.

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