1. Make a Diwali budget<\/h3>\n\n\n\n
There are some basic steps for making your special\nDiwali spending budget.<\/p>\n\n\n\n
- Make a wishlist first, and\nthen shortlist purchases based on your available resources. <\/li>
- Have an overall Diwali\nspending limit as well as a specific limit for every category of purchases such\nas home decor, clothes, gifts, etc. <\/li>
- Make this list much in advance\nto have enough time for going through discounts, deals, and adjusting spends. <\/li>
- Don\u2019t spend beyond 30% of your\ncredit card limit. Doing so would affect your credit score negatively and make\napplying for loans and credit difficult in the future. <\/li>
- Don\u2019t forget to factor in your\nbonus. Even though it\u2019s been a rough year, some employers are planning to give\nDiwali bonuses to employees. Use this amount wisely for paying your dues first,\nand then allocate the rest to your Diwali plans. <\/li>
- With your bonus, prepay and\nforeclose loans if possible. It will take off the post-party stress on your\nfinancial health in the months to come. Remember that it is also tax returns\nmonth! <\/li><\/ul>\n\n\n\n
Additional Read:<\/strong> How to ensure that the light shines on your wealth this Diwali<\/a><\/p>\n\n\n\n
![\"Tips](\"\/wp-content\/uploads\/2020\/11\/plans-to-splurge-this-diwali-2.jpg\")
<\/figure>\n\n\n\n2. Gift yourself an investment <\/h3>\n\n\n\n
Diwali is about gifting as much as it is about\neverything else. After a tough year and some more expenses in the form of\nDiwali spending ahead of you, might want to get a little bit serious for a\nwhile. This Diwali, gift yourself financial strength in the form of mutual fund\ninvestments. Why mutual funds? Because they have a smaller capital outlay\nsuited to the current financial situation, they are flexible, and they are\nsafer than equity. Besides, they usually come with expertise in the form of\nfund managers. What better way to gift yourself and your family something\nlasting than an investment that instills financial discipline and provides\nprofits in the long run? <\/p>\n\n\n\n
Additional\nRead: <\/strong>What Is The Power of Compounding & How Can\nYou Use It?<\/a><\/p>\n\n\n\n
3. Compare loans<\/h3>\n\n\n\n
Taking a loan might become unavoidable on such\nhigh-expense occasions. It could be a last-day addition to your wishlist, extra\nrepairs required for the house, or changing your mind about the car you want to\nbuy. For such scenarios, loans often work better for financial health than\ncredit cards do. Select a loan carefully after evaluating its interest rates,\nprocessing time, tenure, EMI, and down payment. You could also take a top-up\nloan if you have an existing loan. But if you are opting for a new loan, comparison\nis key. Your choice of loan must not just be based on your family\u2019s and\nfriends\u2019 advice, or a one-off article that you read a while ago. You could miss\na better deal simply because of not being patient enough to search about it and\ntaking a loan hastily. Use EMI calculators available on the Moneyfy App<\/a> to know your interest outgo and tenure. <\/p>\n\n\n\n
Conclusion<\/strong><\/h2>\n\n\n\n
Diwali spending takes as much thought and planning as any other part of the festival. Even if you hadn\u2019t paid much attention to it before, it is time you started paying attention and making financially sound choices. Using these financial tips for Diwali spending, you can be careful and enjoy the festival with your loved ones at the same time. After all, you can never be too careful with your financial health. <\/p>\n\n\n\n