Festivals in India occur throughout the year; however, more festivals and celebrations, with several important ones, such as Dussehra, Diwali, Christmas, and New Year’s Eve, fall in the second half. Retailers roll out sales and attractive discounts around this time to lure shoppers.

One can easily get tempted to buy new things, ignore one’s budget, and fall for short-term pleasures. This trap can lead to long-term financial strain. Although purchasing gadgets, clothes, home décor items, etc., could break life’s monotony, the key lies in planning.

Here are three points one must consider to avoid off-balance between festive spending and investing routine.

Also Read: Five Smart Ways To Make The Most Of Your Festive Bonus This Season

Stick To Budget:

Whatever may be the occasion, one must always stick to the budget. They should plan the expenses ahead of time to avoid rocking the balance. Additionally, they should purchase items they need, not because they are available at cheap rates during the sale. So, don’t go overboard, and be conscious of your budget.

Save First And Then Spend:

Experts advise you to save first and then spend. Save money from your income, invest, and then spend the rest. This approach keeps one from unnecessary spending.

Anand K. Rathi, co-founder of MIRA Money, an investment management platform, suggests, “If spending during the festival season is important to you, it’s essential to plan accordingly”. He adds that one can invest in gold in Dhanteras or a systematic investment plan during this time. “This will not only help you to boost your portfolio because instead of doing a 12-month SIP, you will do 13 months, but it is also a great way to enhance your portfolio value over time. So, focus not only on spending but also use this time to improve your savings and investments,” says Rathi.

Spend Your Bonus Amount Prudently:

Those who get a bonus around this time should spend it prudently. While there could be uncertainty about the bonus amount until it is received, one can plan for a particular purpose. For example, one can pay back debts, make investments to save tax, or invest in up-skilling yourself, a loved one, or other fruitful purposes. Though the urge to spend this extra amount could be high, align it with your needs and festival expenses.

Rathi says, “Discipline in investments is crucial for success. Neglecting to plan and invest can negatively impact the well-being and future of one’s family. However, maintaining investment discipline not only secures your family’s future but also ensures a comfortable and prosperous life for them.”

So, while enjoying festivities and spending time with family is important, being consistent about savings and investment is crucial in the long term for your finances to enjoy many more festive seasons.