After the excitement and joy of Diwali, many people find themselves facing the aftermath of festive spending. The celebrations, while heartwarming and memorable, often lead to a financial strain that can disrupt monthly budgets and savings plans. But instead of feeling discouraged, this post-Diwali period offers a valuable opportunity to reset financially and build healthier spending habits.
By assessing expenses, setting new budget goals, and making mindful adjustments, you can get back on track and even prepare for future celebrations. Here are some practical and effective strategies to help regain financial stability and plan ahead for a stress-free festive season next year.
Initially, assess the financial impact of your holiday expenditures by documenting all costs associated with Diwali, including gifts, home decorations, and entertainment activities. Formulate a ‘recovery strategy’ and establish a budget aimed at replenishing your savings by allocating an additional 10-15% of your monthly income.
Also Read: When to sell your mutual fund? Here’s how to decide
“Also, refrain from discretionary spending on entertainment options such as movie subscriptions and dining out for a period of two to three months. Consider selling unused Christmas or Diwali items through second-hand goods applications. Additionally, initiate a new ‘festival fund’ specifically for the next Diwali by setting aside a small amount each month starting now. After the festival, many companies offer special rewards, so utilize cashback applications to help offset some of your expenses, as they often provide enhanced incentives. Prioritize paying off any festive loans incurred during the holiday season,” suggests Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited.
“You can track your expenses using smartphone applications like Money Manager, which allows users to categorize their spending and set limits within those categories. Remember that recovering from a financial setback requires time. So, avoid the temptation to resort to drastic measures; instead, focus on gradual progress,” Maurya adds.
Raghunandan Saraf, Founder & CEO, Saraf Furniture, advises people to transform their views of the financial challenges linked to Diwali into a perspective that motivates them to adopt healthier financial practices moving forward.
“Begin meal prepping to reduce your grocery expenses by 40% by creating weekly menus that incorporate leftover ingredients from the festive season. Initially, apply the 72-hour rule when considering unnecessary purchases to safeguard your finances. Participate in local barter circles to exchange unwanted gifts for items that are more useful to you.
» Read More
