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Thursday, February 9, 2017

Tips and tricks to avoid debts during festival season

Not planning ahead for festive season expenses is one of the main reasons why people slip further into debt. Money can matter a lot, especially during festivals and festivities. There are gifts, decorations, food and beverages to buy. For many, travel is impending, to meet up with friends and family. If you want to celebrate, you need money and when you don’t have it, you approach your friends or financial institutions that lend you money. 

Here are some tips and tricks that can save you some serious money during a festival season.

Set yourself an affordable budget for spending

Setting yourself a clear and realistic budget is a key strategy for managing your money during festival season. A detailed budget needs to be created for all your additional expected costs such as gifts, travel, party and decorations. Allocate the amount you can afford on each of these expenses and then you will have a total figure of what you can spend for each.

Use debit not credit

For everyday purchases, consider using debit card instead of credit card. This is a better way by which you can make sure that you don’t over-extend your credit. In the case of using credit card, you will end up using up a lot of personal finance by the time you have to pay up the card bills the next month!

Make a list and then shortlist

Make a list of all the people you want to invite for the party and for whom you need to buy the gifts. Once you are done with it, do shortlist the most important people from this list. And when you shortlist, try to cut down at least 50% of the first list. 

Check out for discounts and coupons

As we all know, festive seasons luckily come with discounts and coupons. You need to plan in advance so as to collect discount coupons and codes, make sure you use them to the maximum to save more on all your festive purchases. This is important to be kept in mind.

Make your own decorations

Decorations are the other expense where you need to spend more during festive seasons. Instead of buying such expensive decorations (glittering and lighted ones), spend some extra time, get creative and make your own decorations using cheaper stationary you can get. This will not only save you some money but also gets you decorations that are personalized and unique. You can also reuse the decorative items of the previous year. 

Note: Instead of the flashy and expensive ones, you can use the cheaper versions of LEDs for decorations 

Consider non-perishable discounted items to gift

Non-perishable items like wines and perfumes can be bought when they are sold on discount sale and that can be gifted during festive season which will help you to stay debt free.

Organize potluck parties

If you are not able to host or afford a party, arrange a potluck party (everyone brings in a dish that contributes to the party). This is a brilliant way to share and care and also survive during the festive season.

Stick to your budget

This is a very important thing to follow. If you are a little careful and plan well in advance, you can make sure that you follow your budget strictly, otherwise you will definitely have to consider getting help from some debt collection agency or some other options.

Debt can get you in bigger trouble personally and the thought of it lingers in your mind that fades the happiness of the festivities. Following the tips above will definitely help you to make the festive season the most memorable.

Image: Author owned and licensed