India is a land of festivities. With Dussehra around the corner, the three-month-long festive season will commence very soon. It is marked by family get-togethers, annual trips and merrymaking. Retailers offer the biggest discounts while families save all year to splurge during the festive months. Online retailers in India are expected to garner cumulative sales of $6.5 billion in a few weeks, even with the ongoing Covid-19 pandemic. However, spending must be balanced with deft financial planning. This Dussehra, plan your finances better to magnify the celebrations. Financial planning requires an objective approach. Start with budgeting.

Decide a budget

Gifting, sharing and visiting friends and families are a key part of every festival. The resources of every family, however, are limited. One cannot spend beyond his/her income on festival gifting or shopping. Establishing a budget beforehand can be a natural solution to overspending. It is common to splurge excessively during festivals. Take into consideration all the basic needs and long-term commitments and establish a special budget for the festive months. Dussehra will be followed by Diwali, Christmas and new year. Match the festival budget with the expected income in the next few months. Do not forget, festivals are an annual affair in India. Always give primacy to ongoing financial commitments while deciding the budget.

Plan the festive calendar

Social gathering and meet-ups cannot be avoided during Dussehra. There are fairs to visit and dinner parties to attend. To save your household finances from going haywire, it is better to plan. There are three major expenses during Dussehra and other festivals that follow it—gifting, get-togethers and shopping. Make a list of all your friends and relatives and decide the gift items for them as per your budget. Before shopping, segregate the items on your wish list into high-priority and low-priority. After considering the discounts, if you can fit all the items in your budget, press the buy button. If the cost exceeds the budget, strike-off the low-priority items and buy only the high-priority ones. Like gifts and shopping, plan your social calendar. An impromptu dinner will cost you more than a planned one.

Save, Save, Save

The season of festivities is long and stretches to the next year. The prudent step would be to save for the festive months. The extra savings from the rest of the year can be deployed during the festive season. Even if you have not saved much, add a larger proportion of festive bonus to your budget. While saving, budgeting or spending during Dussehra, the focus should always be on regular expenses and long-term financial planning. It is not advisable to cut back on regular commitments or divert funds from long-term savings to spend during Dussehra. Try to maintain the normal savings rate even during the festive months.

Additional Read: 5 Financial Scenarios in Which you should Opt for Personal Loan

Dussehra - Plan your finance with Festive Season Loans

Go online!

India is dominated by brick and mortar stores, but if you want to spend less, opt for online retailers. E-commerce companies generally offer deep discounts during Dussehra. Online shopping is relatively faster, cheaper and more convenient. Most companies also provide the option to gift-wrap items and deliver it to an address of your choice, thus, saving your time, money and energy. One can get the best deals by comparing products from different websites. The tie-up of online retailers with various financial players helps too. One can get additional discounts with select financial institutions, leading to considerable savings.

Make smart choices

The financial sector has evolved significantly in the last few years. The digitisation of finance has resulted in increased options for buyers and consumers. Financial planning is not just about saving and spending, but also prioritising investments. If you can save right now and spread the expenses over a period of time, why not opt for it? Sometimes, opting for a personal loan or EMI makes more sense than making a big purchase at one-go. Exciting offers on personal loan interest rates have made them an attractive option for festival shopping. Buying expensive appliances or furniture through personal loan would be more beneficial as you will not have to dip into your long-term savings and disturb household finances. Moreover, you can use a personal loan calculator or EMI calculator to get an idea of the monthly outgo. 

Additional Read: Easy Financial Planning with a Personal Loan EMI Calculator

Conclusion

A prudent financial plan is essential to maintain a balance between festive spending and saving. While planning your finances will keep you in good stead, some instances require urgent cash infusion. Opt for a personal loan from Tata Capital to get the television set or the mobile phone you have been waiting for a year. Tata Capital personal loans come with attractive interest rates and repayment flexibility. And you will not have to step out to avail the personal loan! Apply online and get quick access to money. 

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