Once the festive season is finished, it is important to review personal finances.
Let's come back to reality, the Diwali festive season is over and it's time for a detailed assessment of personal finances. It's time to take a closer look at our financial habits and make right resolutions to ensure long-term stability. Handling financial condition after festival needs a combination of planning, discipline, and adaptability, which needs consistent effort and commitment. In this article, we will explore some impactful ways to keep yourself financially stable post festival.
Considering the uncertainties in economy and lot of spending in this festive season, it's highly important to have a comprehensive personal budget. This should be monitored closely. Check if you are within your budget or exceeded your estimated planning in this Diwali.
Once done, you will have a better understanding of your current status and how to proceed further. Start allocating your earnings to various domains like groceries, housing, transportation, and savings. By regular tracking, you can easily ensure how to align your budget properly. This will help you identifying zones where you can do a little cut back or save more efficiently. For this purpose, you can utilise various budgeting apps or spreadsheets. This will help you identify areas of improvement in the future.
Emergency fund can save you from unexpected financial challenges. To avoid this, create a seperate account in bank as an emergency fund and focus on saving at least 3-6 months’ of living expenses. This will reduce your stress also.
Always remember, wealth generation is a time consuming process, with lot of discipline and efforts. It is linked to your spending habits.
“Indians, like people in many other cultures, do tend to increase their spending during the festive season, and this can sometimes lead to overspending," said Col. Rakesh Goyal (Retd), Certified Financial Planner, Founder and CEO, Lets Invest Wisely.
Avoid any unnecessary spending post festival. Let your finance come to a stable structure before checking out items from your cart. Your necessities should be only housing, grocery, health care, transportation and monthly bill during this no-spend month.
If you have already crossed your budget for Diwali expenditure, to get back on track you can start doing freelancing jobs. If you can avail the option of overtime payment, start doing it on weekends. Calculate how much you need to recover and plan accordingly.
The festive season often distract us from long-term financial ambitions. Thus, it's mandatory to always write the goals in the morning or looking at them. This can help you refocusing and moving in right direction. If necessary, reset your short-term goals.
The post-festival financial recovery is most effective when you combine cost-cutting methods with money-saving tools. Follow the strategy of ‘save first, spend later’.
If you have managed to stay within your estimated budget during festive season, take note of those effective strategies, so that you can replicate them next year.
