How to Spend Wisely this Festive Season?
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With the festive season around the corner, it is important to remain watchful when it comes to spending habits.

By following some of these steps, one can stay within the spending limit without breaking the bank. 

Create a budget: This is the first step towards prudent spending. Ideally, avoid being carried away and falling for online shopping deals or email promotions. Adhere to a budget and spending plan as per the shopping list. Establish a budget while keeping it within 50% of the monthly income. The core idea is to prioritise savings and investments instead of engaging in spending that would stretch the finances. 

Make a shopping list: Make a list of the individuals one wishes to give gifts to and mull over ideas for each person. This way, it would be possible to plan purchases well in advance while allowing the time to search for offers and avoid last-minute panic buying. Think about thoughtful, personalised gift options that highlight care, all this without breaking the bank.

Choose paying by cash or debit cards: Consider using cash or debit cards instead of paying by credit cards for festive purchasing. This way, one can keep a tab on spending as they are using the money they genuinely have while avoiding the accumulation of credit card debt. 

Plan for timely repayment of credit card bills: In case one uses a credit card, ensure to pay off the balance in full by the due date to avoid paying interest charges. In fact, plan for repayment before one makes purchases. Work out a repayment strategy that includes paying more than the minimum amount due to reduce the interest burden. Ideally, factor in the budget and financial goals to choose the most suitable repayment plan.

Avoid falling for the lure of buy-now-pay-later schemes: Although it seems easy to opt for a buy-now-pay-later (BNPL) scheme to purchase any item that is beyond the budget, it is important to note that BNPL is after a loan. The e-commerce or offline retail entities tie up with financial institutions, and the lender settles the accounts. However, the loan will be disbursed to the buyer-borrower. While the interest is not paid by a buyer but the brand, the responsibility to clear this particular loan on time lies on the individual.

Adhering to some of these tips allows one to enjoy the festive season suitably without overspending. Ultimately, it is the thought and concern that really matters.

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