How to budget your festive shopping: A look at monthly income allocation

Published by: CNBC-TV18.com

Navigate the festive season without denting your wallet. Discover 15 financial tips for a budget-friendly celebration.

Festive Season

Festival season brings celebrations, traditions, and gatherings. Balancing enjoyment and financial well-being is crucial.

Financial Planning

Align your spending with your financial situation. Avoid exceeding 30% of your monthly income on discretionary expenses.

50-30-20 Rule

This rule divides your income into three parts: 50% for needs, 30% for wants, and 20% for savings and investing.

Structured Approach

A structured approach ensures a financially sound festive season.

Prior Savings

Allocate 1-3% of annual income for the festive season to cover celebrations without straining finances.

Limit Spending

If you haven’t saved for festivities, keep spending within 1% of your annual income to prevent overspending and financial stress.

Avoid Debt

Avoid debt during the festive season. Focus on sensible spending and reliance on savings rather than credit cards.

Avoid Overspending

Avoid overspending during the festive season.

Avoid Unplanned Shopping

Incredible discounts can persuade you to buy unnecessary items. Buy what you need and avoid purchasing what you want.

Buy Useful Products

Buy goods that have great utility and durability, such as electronic items that are significant for work.

Avoid Frivolous Expenses

Frivolous expenses on items during festive times can be avoided.

Resist Peer Pressure

Don’t spend just because others are spending.

Different Payment Modes

Take advantage of various digital payment modes that offer convenience and value for consumers.

Stress-Free Experience

Always go for a stress-free and rewarding experience.