In our vibrant culture, we cherish the tradition of celebrating with a large gathering, living by the timeless motto, ‘The more, the merrier.’ Yet, the latter half of the phrase, ‘spending is heavier’ often remains unspoken. As we ring in the season of lights, it’s the perfect time to embrace this truth and plan for joyous celebrations.
With the onset of the festive season, our inner shoppers come to life! It’s that special time when we indulge in gifts, decorations, fancy clothes, and all the delightful things that make celebrations magical and light up the smiles on our faces.
According to the “#FestiveFeeling Report 2023” by ShareChat & Moj, a whopping 48% of folks looking to spend over Rs 10,000 end up going 2x their set budget, thus overspending.
While these expenses are all part of the festive fun, it’s wise to approach them with financial smarts. With user-friendly platforms like CRED, there’s no need to stress over the financial side; you can turn this season into a fantastic opportunity to celebrate with your loved ones while managing your finances wisely.
Here are the 4 Ps to make your journey through the season as simple as possible:-
- Prioritise: Start by prioritizing your expenses. Identify your non-negotiables. Gifts for close family and friends, hosting a dinner, and a few decorations, perhaps. Rank these items by importance and allocate a portion of your budget to each.
- Plan: Planning plays a critical role in ensuring that your financial journey during the festive season is smooth and stress-free. Where you spend, how much and why are the three core questions that will help you plan to the T. Set a clear and realistic budget. Consider your income and be mindful of your financial limitations. Allocate specific amounts to each of your prioritized expenses. Follow the 50-30-20 rule here. Allocate 50% for your must-haves, set aside 30% for enjoying your festive specialities, and save a solid 20% for any unforeseen expenditure. Staying within your budget is crucial to avoiding unnecessary financial anxiety.
- Purchase: Once your plan is in place, sticking to it must follow suit. It is common to be overwhelmed by the options that the market has to offer, your goal should be to not give into the temptation and follow the pre-set plan when you go to purchase your wishlist. Buy Now Pay Later, could be your best friend in cases like this where you can purchase, save and repay at your own time. “I have always had trouble finding reliable avenues to use BNPL services, but I think while making buying everyone gifts, I was afraid of going overboard and didn’t want to spend all my savings right away. Using flash, helped me make my purchases”, said a CRED member.
- Collect Your Prize: Rewards can come as a great prize, and what better time to claim them than the season of gifting? Platforms like CRED help give you rewards that you can claim from various merchants and even on their store, which have a plethora of options to choose from. This way, when the expenses come knocking, you’ll be well-prepared.
If Plan A, B, C, or D fail, here is plan E&F- Emergency Funds. These funds serve as a financial safety net in case of unexpected expenses or emergencies that are prone to arise during the festive season. It provides peace of mind and ensures you can cover unforeseen costs without disrupting your overall financial plan.
In conclusion, the festive season is indeed a time to cherish. It’s a season of sharing, love, and joy. With the right financial strategy in place, you can navigate through the festivities without breaking the bank. Remember, the more the merrier, but with smart financial planning, you can make sure that the “spend heavier” part remains manageable. Embrace the season, prioritize, budget, save, and let CRED assist you in your financial journey.
As the season of celebrations rings in, are you prepared?
