Diwali brings with it the massive upsurge of fun and excitement that sometimes comes with huge spending. From gifts to decorations, and from feast to travel, the festival certainly leaves a dent in your finances. So, even if the festival ends, that does not mean damage needs not to be assessed and proactively recovered. A post-festival detox can help get you back on track and make sure your financial well-being is recovered in the weeks following Diwali.
1. Review Expenses
Take an inventory of the money spent by categories of goods during the festival to better understand where your money is being spent.
Examine your expenditures once Diwali ends, as part of the detox process. Collect all your receipts, credit card statements, and electronic payments to track where every coin was spent. You would be able to notice which unnecessary spending there is, places money has been wasted, and where you will need adjustments to your budgets for future celebrations. Sometimes, how money is spent opens people's eyes, and this works as a base for making better plans for future events.
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2. Create a Temporary Budget
For a couple of weeks after Diwali, you can cut your expenses temporarily which will help counter the festive expenditure. You can adopt a post-Diwali budget that stresses essential expenditures such as grocery, electricity bills, or rent and restraints non-essential expenditures like eating out or watching movies. The more frugal budgets in weeks after the festival will help you get back on an even keel sooner.
3. Pay Off Credit Card Debt
If you had charged up the credit cards on Diwali spending, clear that balance out as soon as possible. Or else the card will just sit around collecting interest, making the debt harder to pay off. Use a chunk of the post-Diwali savings or bonuses toward paying that off. If you cannot pay it off in full, make payments above the minimum to eliminate the interest charges.
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4. Rebuild Your Emergency Fund
Chances are that you had to break into your savings or emergency fund to pay for Diwali expenses. Now it's time to rebuild that account. Start with a small part of your income every month committed exclusively to rebuilding your emergency savings. A fully funded emergency account is a financial cushion and means you have peace of mind on future unexpected expenses.
5. Plan for Future Festivals
What can be taken away from this year's Diwali spending is the preparation that can be made for next. Designate a festival fund and every month set aside a small amount. By the time the next festival season comes around, you will have a tidy sum saved up, reducing the financial strain associated with festivals.
A post-Diwali financial detox is very essential to get back control of the finances once again. Reviewing expenditures, setting up a temporary budget, clearing debt, and planning for tomorrow will keep on getting back on the right financial health track, being able to be even better prepared for the next festive season.
