Diwali 2023: How can millennials be more financially wise this festive season? Here are 4 ways
In the midst of the joy and celebrations associated with Diwali, it’s important to stay committed to your financial goals. Take advantage of this festive season to identify any financial missteps and revise your plan to align better with your monetary objectives.
You can already feel the nip in the air. The festival of Diwali is fast approaching and you can already sense a feeling of celebration in the air. With this festival being one of the most luminous and in line with many other festivals synonymous with happiness, wealth, and prosperity, many millennial investors sense a strong urge to spend money on things or resort to frivolous spending.
This might be discouraging to investors, particularly those who are still accumulating capital. However, keep in mind that impulse purchasing can easily derail your financial goals. Opting for prudent financial choices rather than splurging during festivals can bring immediate benefits to individuals and families while also securing a more promising future for them. The following reasons explain why.
- Celebrations often strain finances as people tend to allocate substantial funds for gifts, food, travel, and various festival-related expenses. This spending tendency can result in financial strain and accumulated debt. However, by making prudent financial decisions, individuals and families can sidestep these challenges.
- Moreover, festivals present an opportunity to save money, with many businesses offering discounts and promotions. By capitalizing on these offers, individuals and families can trim their expenses and build savings.
- Furthermore, festivals can serve as an opportune time to invest money. Post-festival periods often witness a surge in the stock market. Seizing this moment, individuals and families can invest and potentially capitalize on the market rally, yielding returns on their investments.
Consider these guidelines for making prudent financial choices amid festive occasions:
Have a budget in place
Prior to embarking on expenditures, establish a budget for your festival-related expenses. This proactive approach will assist you in adhering to a financial plan and steering clear of unnecessary overspending.
Initiate the budgeting process by gauging your income. Evaluate the anticipated funds you will receive during the festival season, encompassing salary, wages, bonuses, and any other income sources. Subsequently, enumerate your expenses, encompassing items such as gifts, food, travel, decorations, and other associated costs for the festival season.
In the next step, allocate your expenses thoughtfully. After compiling a comprehensive list of your expenses, categorize them into distinct groups, which may involve gifts, food, travel, decorations, and other relevant categories. Establish priorities among your expenses, recognizing that not all are of equal significance. Ensure that you allocate your funds to prioritize the expenses that hold greater importance for you. Lastly, assign specific amounts to each category, bearing in mind that the total should not surpass your anticipated income.
Compare to shop smart
Before making any purchases, particularly during festivals, it’s crucial to explore various options. Numerous businesses provide discounts and promotions during these festive periods. By conducting price comparisons, you can secure savings on your expenditures.
For savvy shopping, meticulously compare prices across various stores. Resist the impulse to purchase at the first store you encounter. Instead, visit multiple stores, scrutinize prices, and make an informed decision. Additionally, extend your comparison to online platforms, as they frequently present more competitive prices than brick-and-mortar establishments. Take advantage of the opportunity to compare prices among different online retailers to secure the best deal.
Before finalizing a purchase, invest time in reading product reviews from other customers. This step ensures that you make informed decisions, steering clear of products that may lack quality or fail to meet your expectations.
To stay in the loop about discounts and promotions, consider subscribing to email lists. Many businesses extend exclusive offers to their email subscribers, providing an avenue to access special discounts and promotions from your preferred establishments.
Look for discounts and promotions during festivals
Numerous businesses extend discounts and promotions during festivals. Capitalizing on these offers can result in substantial savings on your expenditures. Efficiently leveraging discounts and promotions during festivals becomes seamless with careful planning. Begin by identifying businesses offering these perks by checking their websites, subscribing to email lists, or following them on social media. Before shopping, create a list outlining your essential purchases, facilitating adherence to your budget and preventing impulse buys.
Opt for off-hours shopping when businesses are less crowded, providing the opportunity to compare prices at a leisurely pace. Explore available coupons online, in newspapers, or magazines to maximize savings on your purchases. Lastly, don’t hesitate to inquire about discounts. Many businesses are open to offering discounts upon request, so if you spot something you desire, don’t shy away from asking for a discount.
Turn down invitations to frivolous parties
Feel free to decline invitations or requests if they are beyond your financial means. It’s perfectly acceptable to also say no to purchasing gifts for others when you’re working with a limited budget. Above all, it’s crucial to have the ability to decline to safeguard both your financial stability and emotional health. If you consistently agree to commitments beyond your means, you may find yourself in debt or experiencing persistent feelings of being overwhelmed and stressed.
It’s crucial to evaluate your expenditures and financial choices once the festive season concludes. This enables you to pinpoint areas of overspending, allowing for adjustments in the coming year. Begin the review process by collecting all relevant financial documents from the festive 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 post-festive season allows you to learn from any missteps, paving the way for improved choices in the upcoming year. This proactive approach ensures alignment with your financial goals and guards against unnecessary expenditures.
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First Published:12 Nov 2023, 01:52 PM IST
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