It’s time of the year yet again that’s bound to affect your savings and cough up your earnings. Yes, we are talking about the festive or the sales season where you buy gifts for yourself and loved ones.
eCommerce websites announce dazzling sales offer that surely spoils you for choices.
While it’s a good time for those who save all year to shop during the sales period, many poke a hole in their pocket as they indulge in pointless shopping that hurt them for months. It impacts their savings and investment.
Yes, the sales are so contagious that even senior citizens indulge in this and use their senior citizen fixed deposit.
Do not put an end to your celebration; rather be a smart shopper and not an impulsive one. How? Let’s provide you with three tips to help you shop and still save!
Tip #1 – Have a Budget for Shopping
Making or allocating a budget to your any goal or task is the first step towards any financial planning. When it comes to sales or festive period – allocate a certain budget and try to stick to it, no matter how flaunting a sale is. Don’t go over budget as this will lead to using your investments such as Recurring Deposits, or the standard fixed deposit or senior citizen fixed deposits to make up for the extravagance.
Tip #2 – Need Vs. Want
There are times when we spend on things that we don’t want. Although we purchase unwanted stuff when the sale is on, we regret it later that we may have avoided it.
Pune-based senior citizen Mr. Balraj Manjrekar had invested in a special senior citizen fixed deposit to use in emergency situations. However, one December Christmas sale came and coughed up all his savings as he could not resist shopping majorly for his wants and not needs.
He had to regret it later that he should have differentiated between the needs and wants. As a result, even you should know what you want and what you need is to stay afloat, always.
Tip 3# – Cash or credit
It’s a known fact that a credit card debt is the nastiest form of credit as it carries the highest rate of interest. Thus, even if your credit card has a good credit line, try not to use it and if you must, try not to maximize the limits and pay via the EMI route. Why? You will end up paying more than what you purchased!
You may have to use your senior citizen FD in case you are not prepared to pay the bills via the usual modes of payments such as the cash or the debit card.
What’s more, don’t be fooled with cashback offers on credit cards as they are all marketing tricks to use or max your credit card limit.
You will see many people who earn more than Rs.1 lakh per month and still have a credit card outstanding due to their passion for online shopping.
If you have to purchase during the festive season or sales, make all efforts to pay via cash or your debit card. A credit card is for an emergency usage, and it’s typically not meant to indulge in an online shopping spree.
The Bottom Line
You just went through the time and tested steps or tip to help you become a smart shopper and not an impulsive one. If you are a senior citizen who loves to shop online, do not rely on your senior citizen FD to cover up your spending.There are lots of the reasons to invest in senior citizens FD that will help you to earn good interest rates on it for your future cover and bigger goals; don’t pit it against a pesky goal such as the online shopping! All the best!