Don’t let spending on account of festivals, weddings stop you from saving money

6 MinsNov 25, 2021

Any kind of festivity, be it a festival or a wedding in the family, is a joyous occasion and one way to celebrate is by buying new things, for yourself or for gifting. These could be apparel, electronics, gold, jewellery, vehicles, and so on. But even as you indulge in the much-needed retail therapy, you should simultaneously save money too, in the interest of your financial future. Here are some money-saving tips to follow even as you shop till you drop:

festive and wedding season

1. Shop but within limits – For any kind of shopping, make a list of the things you need. Don’t buy anything and everything just because there are attractive discounts. Whether it is new furniture, home appliances, personal gadgets, clothes, footwear, etc., consciously make your choice to save. Have a budget and make sure you track your spending.

Don’t get swayed by the excitement of the festival period. Just because your friend, colleagues, relatives, or neighbours are spending, doesn’t mean that you should too and shop beyond your budget. “Spending money to show people how much money you have is the fastest way to have less money,” writes Morgan Housel in his book, The Psychology of Money. Hence, enjoy the revelries of Diwali within your means; do what fits your wallet.

2. Use your credit card/debit card smartly – While shopping, assign certain credit/debit cards for certain items and restrict your expenditure to a budget or a limit when you have more than one card. Avoid carrying wads of cash, which may be lost or stolen.

For purchases such as home appliances, gadgets, etc., use that card that has attractive buyback offers. Axis Bank, for example, is offering instant discounts plus an additional cash-back on a variety of items, brands, and restaurants this festive seasonon card swipes, both online and offline. So, use your Axis Bank credit and debit card and add to your savings.

When you use a credit card that suits your needs, it makes life easier for you. Other than cash-backs and instant discounts, certain high-value transactions can be converted into affordable EMIs (Equated Monthly Instalments), and you can avail of the auto-debit facility if you fear missing out on the credit card payment due date. Also, using your credit card rewards you with points that can be used for your succeeding purchases. Axis eDGE Rewards are carefully crafted to ensure that you get real value while you shop and earn points that are redeemable to your advantage.

So, do not be under the impression that a credit card would ruin your financial health. Well-controlled credit card/s usage enables living a comfortable lifestyle without jeopardising your financial wellbeing.

3. Invest wisely to grow your money – However, remember that savings alone will not help. So also deploy your savings into more productive investment avenues.

Consider investing in Bank Fixed Deposits. Apart from competitive Rate of Interest, Fixed Deposits offer a host of benefits such as No Premature Penalty beyond 15 months on pre-closure beyond two years, 24x7 Overdraft Facility, etc, which would in return help paying attention to your liquidity needs, investment objective, and investment time horizon.

To address a long-term financial goal/s systematically that is more than 3 years from now, consider the auto-debits from your savings account to SIP (Systematic Investment Plans) into a top-rated equity mutual fund scheme. To know how much you can potentially earn by SIP-ping into mutual funds, use Axis Bank’s online SIP calculator.

Also, since gold is symbolic of Goddess Lakshmi, invest a portion of your portfolio, say 5-10%, in gold. It can help to diversify your portfolio.

[Also Read: This Diwali, Don’t Burn Your Money; Pledge to Invest]

Whichever investment avenue you choose, do it thoughtfully considering your risk profile, investment objectives, financial goals, and your investment horizon. And after you have invested, make it a point to track and review your portfolio to ensure you are on the path to wealth creation and accomplishing those envisioned financial goals.

Strike a balance between spending and saving. Take a pledge to illuminate your financial wellbeing and safeguard your and your family’s financial future by handling money wisely.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision

Mutual Fund investments are subject to market risk, read all scheme related documents carefully. Axis Bank Ltd is acting as an AMFI registered MF Distributor (ARN code: ARN-0019). Purchase of Mutual Funds by Axis Bank’s customer is purely voluntary and not linked to availment of any other facility from the Bank. *T&C apply