How to budget spending this Diwali

Factor in the non-committed spending: While planning our monthly budget, we generally account for expenses in the form of EMIs (equated monthly installments), children's education and other regular household expenses. We tend to ignore planning for non-committed expenses like shopping for clothes and presents, travelling expenses, spending on Diwali and other festive celebrations, lunches and dinners with friends and family during this period. If we don't plan efficiently, we are likely to end up overspending during the festive season. One should also avoid excessive credit card usage during this season.
The bee called shopping and the honey called bargain: For Diwali, we tend to buy gold, new clothes and fireworks. Design a festive budget that lists all the related expenses like fireworks, new clothes, sweets, and anything else that we are likely to spend on during this season. Set budget limits for each item and don't spend beyond the specified limits for each category. This ensures that our festive spending is kept under control.
Exchange offers and Loan offers: There are a variety of exchange offers on products, during Diwali. These offers range from exchanging our old cookware, and other household items like refrigerators, television sets for the new ones. We end up indulging in such unplanned expenses, as to most of us, these offers seem too good to be true to ignore. Around Diwali, a whole host of offers and discounts are available on buying cars; even special interest rates on loans are available. But, we often fail to assess the effect of such individual financial decisions on the collective personal finance front. Such purchases lured by discounts and various offers can impact the yearly household budget. Be a smart shopper by analyzing the needs along with the deals in the market. All our purchases should be driven by necessity rather than the discounts being offered.
Diwali bonus: The bonus received by majority of the employees is timed around Diwali. We often plan our festive budget around the bonus we receive. However, we have to ensure that savings also form a part of our plans around the bonus. Set a limit on the amount of bonus to use for festive spending. Especially, considering the fact that tax declarations are to be made in the preceding months, one has to make provisions for tax saving investments using the bonus money received. Our happy times during the festive season should not be followed by financial woes in the coming months in the form of increased credit card payments or EMI payments. The festive budget should be designed efficiently considering the above mentioned factors.

Factor in the non-committed spending: While planning our monthly budget, we generally account for expenses in the form of EMIs (equated monthly installments), children's education and other regular household expenses. We tend to ignore planning for non-committed expenses like shopping for clothes and presents, travelling expenses, spending on Diwali and other festive celebrations, lunches and dinners with friends and family during this period. If we don't plan efficiently, we are likely to end up overspending during the festive season. One should also avoid excessive credit card usage during this season.
The bee called shopping and the honey called bargain: For Diwali, we tend to buy gold, new clothes and fireworks. Design a festive budget that lists all the related expenses like fireworks, new clothes, sweets, and anything else that we are likely to spend on during this season. Set budget limits for each item and don't spend beyond the specified limits for each category. This ensures that our festive spending is kept under control.
Exchange offers and Loan offers: There are a variety of exchange offers on products, during Diwali. These offers range from exchanging our old cookware, and other household items like refrigerators, television sets for the new ones. We end up indulging in such unplanned expenses, as to most of us, these offers seem too good to be true to ignore. Around Diwali, a whole host of offers and discounts are available on buying cars; even special interest rates on loans are available. But, we often fail to assess the effect of such individual financial decisions on the collective personal finance front. Such purchases lured by discounts and various offers can impact the yearly household budget. Be a smart shopper by analyzing the needs along with the deals in the market. All our purchases should be driven by necessity rather than the discounts being offered.
Diwali bonus: The bonus received by majority of the employees is timed around Diwali. We often plan our festive budget around the bonus we receive. However, we have to ensure that savings also form a part of our plans around the bonus. Set a limit on the amount of bonus to use for festive spending. Especially, considering the fact that tax declarations are to be made in the preceding months, one has to make provisions for tax saving investments using the bonus money received. Our happy times during the festive season should not be followed by financial woes in the coming months in the form of increased credit card payments or EMI payments. The festive budget should be designed efficiently considering the above mentioned factors.

ArthaYantra provides personal finance advice online.

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