Diwali, the festival of lights is here! Like every year, front pages of publications will feature festive sales ads trying to lure potential customers. Stores and malls including e-retailers, will adopt another smartly recycled promotional strategy to attract superlative footballs and eyeballs, leaving no stone unturned on the discount bonanzas. Evidently, the prevalent ever-green plastic money culture has exponentially primed retailers to woo potential customers through cash-back offers, EMI options, waiver in processing fees, etc.
 

Festive offers may entice you to shop more than your means and many swear by the instant gratification retail therapy gives you, but don’t forget to take into account your priorities. For the short-term joy, best not sabotage long-term financial wellbeing. Swipe your card thoughtfully.

Before making impulsive purchases, evaluate whether your current finances permit such purchases.Splurging with a credit card can eventually land you ina debt-trap, if you are unable to repay all your dues on time. Living within one’s means, safeguardsone’s long-term financial wellbeing. Focus on the larger goals in life, such as buying a dream home, your children’s future (their education and marriage), and your own retirement, apart from ahost of other ones.

So, before youturn shopaholic or spend thrift introspect prudently and assess whether you genuinely need the things you’re about to purchase or could you possibly settle down for other options befitting your budget. Festive offers and end of the season sales will come and go, but you probably save less and invest lesser, and such frivolous choices can damage your financial health in the long run. Instead, here’s what you could do:
 

• Rationally assess what things you really need vs. things you want
• Have a budget in place (for each item, say apparels, home appliances & décor, gadgets, gifts, etc.) and follow it religiously when you venture out shopping this Diwali
• You could buy things you’ve vied for during sales/festive offers, but ensure that you get the best bargain and read the devil in the fine print. Avoid converting large purchases on your credit card to EMIs (because the prohibited interest rate on cards can lead you to a debt-trap and pull down your credit score )
• Redeem reward points accumulated on credit cards to buy things which can effectively help you preclude a cash outflow
• Pay your credit card dues in full and on time (Paying the minimum amount would only ensure that a penalty isn’t levied but this won’t save you from the burgeoning interest cost.)

So the next time you swipe your card, trigger-happy with the offers and discounts, think: Is it sensible to get enticed and buy impulsively? We all aspire to indulge in fancy gadgets, latest home appliance, branded clothing etc.; but, have you thoughtfully considered all sides before making a decision to buy? Obviously, we aren’t suggesting you sacrifice all wants and desires. But what we mean is you must plan for wants and desires in a systematic way. Ideally, first save, achieve financial security, and then spend; unfortunately, consumerism/materialism and capitalism/competition have swept this tenet far away.

Perhaps this festive season, we might realise the best things in life are free. PersonalFN wishes you and your loved ones a Very Happy & Prosperous Diwali!

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