Author: CAGRfunds Team

It’s the festive season! The excitement, mirth, prosperity, and divinity this season brings is what we look forward to,  the entire year. Diwali is an auspicious occasion that brings families together. With that, comes endless Diwali parties, gifts exchange, new clothes and toys, and whatnot. Since Diwali, especially Dhanteras celebrates and preserves financial wellness, it is only fair we apply this mantra to our festive spending this year. Check out these 5 prudent ways in which we can mindfully spend this Diwali season- 

1. Have An FD / RD or some form of a Festival Fund – A very sound financial habit is to save up for indulgences instead of impulsive purchases. We can apply to the Diwali season as well, as we incur a lot of expenses during this time, whether it be clothes, toys, food, or decorations- the bill adds up. A great way to spend during the Festive season is to save throughout the year and add some money to your FD so when the time comes, you won’t be spending all your money at once! It is truly a prudent and mindful way of spending money this festive season! 

2. Avoid Using Credit Cards- We might be tempted to use our credit cards to incur heavy expenditure during Diwali. You are actually making your purchases even more expensive due to the soaring interest rates that your credit card charges you (in case you miss the full payment amidst the festivities). If your credit card balances go unpaid, it can also drastically affect your credit score. Therefore, be wary of using your credit card this festive season. 

3. Create A Budget- Establishing a budget and being firm about it is key to being mindful this Diwali. Make sure you have a reasonable budget for all your expenses and be sure to include everything. Yes, everything, even petty expenses so that all your expenditure is accounted for. This is a great technique to stop impulsive purchases and actually set healthy boundaries when it comes to spending during the festive season! 

4. Create Separate Budget Categories- Now that you have created a budget, make sure you allocate your finances efficiently to each budget category. If you have a big Diwali party at home, make sure you have budget categories for food, drinks, and decor. If you have a lot of relatives that you need to gift this year, make sure that you are allocating a specific amount of money on gifts of different types- clothes, electronics, toys, etc. The same applies to you if you think about incurring a heavy expenditure this year in terms of a new car or new furniture- make sure you have categorized enough resources towards this heavy expenditure and balanced all other expenses. 

5. Plan Ahead Of Time- Like it or not, e-commerce websites and retailers will lure you into their big banners of attractive discounts, but it is always wise to plan and buy ahead of time. During Diwali, due to increased mark-ups, the prices of things might soar encouraging you to spend more. Instead, use the tips mentioned above, on a budget, create separate budget categories and purchase early to avoid the rush and the soaring prices during the festive season! 

We know the festive season is about indulgence and grandeur, but if we are to welcome the Goddess of Wealth into our homes to bless us with prosperity, we need to consciously adopt prudent and mindful ways of spending to truly embody the spirit of Diwali and Dhanteras! 

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