Archive for the ‘financial planning’ Category

This is the time of merry making and being happy and enjoying the festival with family and friends. Months before the festival the shopping spree begins among the family members. And at this point people spend blindly and in an impulse, unaware of the fact that, you credit limits can touch the sky and it can lead to troubles later.

I am not here, to put your excitement down this festival season, but to help you get away from all the troubles caused due to extreme usage of credit cards. Earlier when there were no credit cards, people still used to shop and enjoy the festival. In fact they used to enjoy more and were more satisfied with whatever they had. But, with people depending on credit cards, their need and wants has also increased.

The cliché is “I can’t do without my credit card”. People just can’t imagine life without credit card. So, let’s see how we can enjoy the festival without credit cards:

  1. Get rid of unwanted stuffs: I am sure; there are lot of unwanted and old stuff in your house, which is lying there unused. Get rid of all those stuff and whatever money you get, you can save it for future or can use for the holidays.
  2. DIY decorations:  People spend a bomb for the decoration of the house during the festival which is not wrong. To get you into a holiday mood, one can decorate the house. But what if the decorations are hand made by you. This is the best time to utilize your holiday and spending time with family, instead of wasting time and money shopping around, Prepare your own decorations.
  3. Utilize the discounts and coupons: This is the time, when you have lots of offers, discounts and coupons available for shopping so make the maximum use of these discount coupons and try to spend as less as you can.
  4. Shop with cash: The best alternative is to shop with cash. When it is cash, you have a track of how much you have been spending and how much is your budget, unlike credit card, where you hardly have a track of your expenses. Using cash will also pull you back from buying things which are not that necessary which you would have bought, have you had a credit card.
  5. Make a list: When shopping around: make a list of items required and try only to buy that stuff. This again will help you keep a track of your purchases
  6. Think before you buy: “Oh! That dress is so pretty. Those shoes are beautiful, I want them.” This is the feeling you get when you go out shopping? Well! You have to think before you go ahead and buy them. Think, “Do you really need it?” It’s not indispensable that every festival you have to buy a new dress and a new pair of shoes. You can always use old dress, which you have hardly used. Buying in sudden impulse is also something which forces you to use your credit card. SO if you stop that urge, you can do without credit card this festival.

With the festival season round the corner, it becomes difficult to curb your expenses and stop the urge of shopping and travelling. But one can always help curb the usage of credit card to the max and still have a blast in the festival.

SO all in all, the usage of credit card is up to you, but you have to always watch out your expenses when shopping around, otherwise you have to bear the consequences later.

Festival spree is on the air and people are busy shopping and spending most of the time outside. And this the time, when you happen to spend more and by the end of the month your loose the track of your budget. I am sure; you have worked hard for this time the year and it’s natural that you get carried away with all the deals and offers during this time.

Having said that, it’s really important to spend wisely on your savings, it shouldn’t be that you spend each and every penny you have saved and then you are left with nothing. Financial crisis, never informs you before coming. SO, you have to spend wisely whether during festive season or otherwise.

Let’s follow some simple tips on how to keep a check on your expenses during festive season:

  1. Prepare a list: Purchase only what is necessary. So prepare a list on what are the items required and then go shopping. This way you won’t end up buying things which are unnecessary and spending more. A proper planning is really important when it comes to spending wisely. Festive season is a test to see if it can withstand your daily budget. So if you pass this test, you can pass any difficulty.
  2. Allot a specific budget: If you have to enjoy your festival, yet not get into any trouble, allot some amount for your festival shopping and the miscellaneous expenses and try to spend within the budget. If you are nearing your limit, it is an alert that, you have spent enough and that’s the time to pull back yourself. This way, you won’t end up spending on unnecessary items.
  3. Don’t buy on impulse: Always, think before you buy anything. Don’t buy things on an impulse. This way, you will not be able to track how much you have spent and how much you are left with.
  4. Don’t get attracted to deals:  There might be some genuine deals, but some might be a way to attract customers and they double the price and sell. SO peruse carefully, before you go for any deals.  If possible, check online and compare the prices and only if you find the deals good enough, then purchase.
  5. If going for a holiday: Again, if this festive season you are planning to go for a vacation. Book everything well in advance. This way you can save a lot. Last minute bookings are always expensive and it takes a toll on your savings. Vacation with your family should always be memorable yet affordable.
  6. Online shopping:  When you hit the malls for shopping, it’s natural that you end up spending more than expected. So the best way is to shop online. This also gives you loads of options and deals, which you can compare and buy.
  7. Be careful with swindlers: This is the time; you come across lot of offers and eye catchy deals. You would not know, and they will use your excitement to buy as an opportunity and would try to cheat. So, always go to the regular shops and avoid going to shops which are temporary. They might be swindlers and their purpose is solely to utilize this festive season as an opportunity to rob or cheat people.

 

SO, when you follow these simple tips, you can save yourself from any further wreck and financial crisis and yet can enjoy the revelry full of fun and joy.

 

Life is very uncertain. At this point in time you may be flourishing, but there can always be an uncertain situation, where you might loose on all your financial support. When your time is bad, you are vulnerable to all the crisis in the world which might bust your present and future. This is the time you know who all espouses you. But this is a very difficult phase of life.

The financial Catastrophe might bring down your self esteem and confidence. And it makes a person feel that he/she has reached a dead end and there is no way out. However, you can always go back in time and figure out, what mistake have you done which led you to this situation. At the same time, what are the future measures to be taken to avoid any further situation like this?

  1. Keep a backup: This is important .Only because there was no backup, you are in this situation. So henceforth, make a point to keep a proper savings and backup for any such crisis. Try to figure out how you can generate more income and how to save the income. There are people who can help you out on this. Take help from financial advisers, and family members.
  2. No more credit cards: Try to avoid using credit cards. Leading a life on credits will not help you on saving, in fact, you will end up spending more, as you are unaware of the credit limits and half of your life will go in vain paying these credit card bills. So, don’t make your life so complicated, lead a simple life.
  3. Curb on your expenses: When you know you have just come out of a major crisis, try to curb on your unnecessary expenses. Try to save more and send less. This is the Mantra for a safe and secured future.
  4.  Don’t put all your eggs in one basket: Which means don’t put all your hard earned money in one bank. Instead distribute your income as saving in different places, like bank, in the form of Gold, some government saving schemes. This way, at the time of crisis, you will not be on the roads, because you at least have backups in different forms.
  5. Try to borrow less and earn more: It’s normal that at your hard times, you try to borrow money from your near and dear once. But, as far as possible try to avoid this, because, it’s like taking a loan which you have to keep paying back. You have not yet come out from the abyss and you will have another pot hole waiting for you. Instead, try to earn more, if possible, do a part time job, and work harder and harder. Your hard work will definitely be fruitful. So be positive.
  6. Change the job if that helps: As mentioned above if you think, you might get a better salary elsewhere; try doing that, because you are in dire need of money.
  7. Evaluate the value of your belongings: I would not suggest you to sell off all your belongings you have. But keeping a track of the value of the same is good for you. And only when you have run out of options, you can take this step.

SO, when a financial crisis occurs, that is not the end of the life and you should not lose hope and faith in God. As they say, May be God has a different plan for you. SO always be positive and come out of this situation even stronger and with greater will power. And you will pass this exam of life with flying colors.

Cheers