After a week of splurging on not-so-necessary items, it’s time to balance our budgets and take control on our financial health.
Festive shopping has let most of us set our pockets afire on Diwali. (Image for representation only. Photo: Reuters)
1. Cut Short Your Budget
Plan your monthly budget and cut short expenses that are either not too urgent or not necessary. Strike-off any eating-out plans, mall trips, or Friday night parties for one month, the amount you’ll cut off from here will become your saving and help in compensating bills.
2. First Things First
Your old EMIs on home loan and car loan, EMIs on any consumer durable loans taken recently, monthly rent, children’s school fee, etc are some expenses which cannot be avoided. Therefore, prioritize these payments first and then make budget for the rest of the month.
3. Don’t Ruin Your Savings
Do not withdraw your savings in a panicky situation? Savings are built over time and you must avoid withdrawing them to meet monthly expenses. Rather, be patient and figure out a solution without touching your savings account. And, if you must withdraw money from your savings account, try to build it again in the months to come.
4. Review Your Festive Spending
Lastly, review how much did you spend this Diwali and what you could have avoided reasonably. This will train your mind to be wary of unplanned or unmindful spending in the near future.
Source: News18