Post – Festive Season Crisis

The entire celebration mode has now slowed down and coming to an end. Long holidays are over and everyone is getting back to their routine. The festive season with back to back celebration, starting from Raksha Bandhan, Janmashtami to Dusshera, Diwali has somewhere given us a mixed feeling. You may wonder being a financial planner what am I talking about?

People often talk about how to celebrate festivals in a stipulated budget, what is the meaning of the festival but I am here to talk about post-festive season feeling. I mean the good feeling of celebration with friends and family is evident and not so good feeling about getting back to work is again obvious but then comes the bad feeling of EMI dates getting closer for all the spendings this season with Great Indian sale,  Big Billion Days, Large Discounts in Malls, etc. The clicks and taps on our phones which we are getting used to does not make us realize that it has not only made buying easier but have made spending more easier.

The clicks and taps on our phones which we are getting used to does not make us realize that it has not only made buying easier but have made spending more easier. Click To Tweet

With 330 million Indian Gods and Demi-Gods, celebrating each day throughout the year would keep an average Indian’s pocket empty and also there would be zero banks and Investment for savings (That was just my loud thinking :P). Thanks to the importance of saving and Financial Planning taught to us since childhood that we don’t celebrate it throughout the year and the majority of us believe in the concept of saving and investing yet.

I know some may feel spending is a sign of prosperity and the country’s GDP is also showing well, but we need to understand that our lifestyle is changing year on year, there is a major impact on our pocket whether its Lower, middle or the higher income group people. This is no brainer that as your income increases your lifestyle changes and so does your habit. From the local shop, we turn ourself to shopping malls and app. But how many of us ask this question to oneself, am I feeling the pinch every year in my pocket? Is my cashflow getting imbalanced? Is my asset and liability in proportion or Are liabilities holding more weight?

Even if you question it now and the answer is yes to the above questions, the good news is it’s not late because the festive season is going to come again next year and we have ample time to budget in and take liquidity and contingency plans into action.

Some points from me to our readers to maintain a Festive budget from now on for Rakshabandhan, Navratri or Diwali 2020:

  • Offers keep coming every festival. Don’t get impulsive and fall for the offers or discount marketing because we often see things subconsciously. What we need to know is what is our priority in terms of need and want. Balance it accordingly.
  • Being festive season, gifting is something we all like to give and receive. However, maintaining a contingency fund aside for such splurging is a wise decision just like our grandparents used to set aside funds for the festival. Old habits still work just give a new perspective to look at it.
  • The credit card spending is pretty handy now with a lot of cashback and different payment options. Just because we can convert our expensive purchases into EMI option does not mean we overspend from our set budget as it is simply turning overflow of emotion to overflow of EMI’s.  
  • It’s not about SIP (Systematic Investment Plan) for the gifts but its more about SEP (Systematic Expense Plan). Plan your Expenses in a systematic way to enjoy every festive season. 
  • List down the expected budgets and gifts you wish to have and maintain the same budget limit.

And above all, festivals are all about bonding with family and friends so be ready for the New year with new zeal and new enthusiasm.