8 Simple Financial Planning Tips that will Help You in Holiday Cash Crunch
The festival season will be just around the corner, and it will probably fills our hearts with excitement and dread in equal measures. While festivities mean fun, food, family, gifts and celebrations, it also means planning for the expenses to enjoy the same, so that you are not left high and dry after the celebrations with holiday cash crunch.
A lot of us tend to indulge ourselves during the festivities and are left waiting for the next pay cheque or worst left with empty pockets to face unexpected emergencies.
Let’s have a look at a few tips that will help you tide this holiday season and emerge with cash still left in your kitty.
1. Plan and Budget
It is very easy to get carried away by the excitement of the festival and holiday season and overspend on various items. Be smart and start planning for it well in advance since the festivities are anyway expected.
For starters, you can set aside a fixed amount each month in preparation for the festival season. Make a list of all the expenses and gifts, create a budget and stick to it steadfastly. This will help you from going overboard on expenses.
2. Other Expenses
For most of you with children, it can also be the time to pay your kids’ term fees as well. Plan well in advance, right at the beginning of the academic year and set money aside. You may also have to factor in other quarter-end related expenses or any sudden holiday vacation plans and plan for them as well.
Sudden medical emergencies or unexpected guests may translate into a cash crunch during the festive and holiday season. Budget for unexpected contingencies like these and set aside some money that will be touched only when such needs arise.
4. Shop Early
Prepare a comprehensive list of gifts to be bought, or items to be purchased. You can start buying them well in advance to avoid the last-minute rush or wait till the last moment to capitalize on the festival discounts.
5. Making Payments
As much as possible make your purchases with cash. Try to avoid using Credit Cards, as they may mean convenience in the immediate term but hassles in the long-term. If you have to use credit cards, make it a habit to clear them off as soon as the bill arrives. This will help you to avoid problems with credit agencies or your rating later.
6. Festival Bonus
If you are fortunate to get a festival bonus during this season, avoid the impulse to spend or indulge. Set it aside for investment in a fund, and you will get good returns in the future.
7. EMI & Finance Schemes
Make maximum use of the equal monthly installment plan or other beneficial finance schemes especially when you have to buy a high-value product.
8. Follow up on your outstanding payments
If you happen to be a small business owner or a freelancer, do not wait until the very end of the invoicing period to raise your invoices. Pre-inform your customers and raise invoices a little early, upon mutual agreement. The other alternative is to use Invoicing Apps like Moon Invoice which has the feature of sending reminders automatically to your customers in the case of recurring invoices. Else, taking an advance deposit if possible, will help you during festival times and avoiding a cash crunch.
The next time around, have a strategy and plan in place, both for your family as well as your business, to help you navigate the holiday season without feeling a pinch. Set aside funds every month systematically and keep in mind to make enough allocations for contingencies too. Make good use of an unexpected bonus and put it to good use, better yet invest it. Shop wisely and take advantage of the various beneficial finance schemes. Use Invoicing Apps that will keep track of your finances and send reminders on your behalf.
These above budgeting and planning tips will help you tide over the possible holiday cash crunch.
Plan smart today and sit back and enjoy your tomorrow!