Festive Season Money Guide: 10 Ways to Avoid Overspending This October

October seems to encourage spending in any way possible.

A festival is approaching, then a sale, followed by a friend's family function, then you notice you need a new festive outfit, more pizzazz in your home, your phone is outdated, and the kitchen appliance you've desired is 50% off!

It can all start with one purchase and spiral out of hand with ten small buys that add up to a substantial amount.

That's why it's so important to have a strategy during this festive season, when Navratri, Dussehra, Karwa Chauth and the shopping season all intersect, and major online sales are vying for your attention.

The best part?

You don't have to give up shopping or the celebrations to stay within your means. You just have to formulate a spending strategy beforehand.

Here are 10 ways to enjoy October without wondering where all your money went by the end of the month:

1. Decide On The Total Festive Budget Beforehand

The first and biggest budgeting blunder is deciding on the total festive budget only after you've started shopping.

What you should do instead is decide the total amount that you'd want to keep aside for the entire festive season.

Let's say, for instance, you decide to keep aside Rs.25,000 for all October festivities.

Divide this amount across all the festivals and sales and you'll have a rough idea of what you can afford during the month.

2. Separate 'Must Buy' From 'Festival FOMO'

Not everything you want that's on sale is actually a necessity.

Before you launch those shopping apps, make three lists.

Must Buy:

These are things you genuinely need for the festival season.
Perhaps a gift for your parents?
Some new clothes for a family get-together?
An essential appliance that's been damaged?
Travel tickets?
Groceries?

Nice to Have

This is stuff you'd like to buy but can actually live without.

New cushions?
Fancy fairy lights?
Extra clothes?
Some small trinkets for the home?

Just Tempting

These are items that you didn't really want but caught your eye because they were on sale.

'I don't need new headphones but these are 60% off!'

This is the category where you must exercise extreme budget caution. A 'discounted price' is still a price. You're spending Rs.2,000 instead of Rs.3,000 but it's still Rs.2,000 gone.

3. Use a Festive Shopping Cap Instead of an Open-Ended Budget

While having a monthly budget is a good idea, it can help you go overboard in certain categories

Instead, allocate a maximum budget for each category.

Say, for example, you decide to spend Rs.5,000 on clothing, Rs.6,000 on gifts, Rs.3,000 on home décor, and Rs.5,000 on electronics.

This way, once you hit Rs.5,000 on clothes, you can't spend any more on that category.

This is a really good way to control spending on clothes. You buy one kurta then decide another one is better. Then you see a saree and then there's a 'buy 2 get 1 free' offer and suddenly that Rs.5,000 has ballooned into Rs.9,000!

A capping system is much more helpful in this scenario.

4. Make a Gift List Before the Sales Begin

Festive gifting can be one of the biggest ploys to your budget. It's not that you go out and buy one expensive gift.

It's the number of people you need to buy for like parents, siblings, friends, colleagues, neighbours, relatives.

Suddenly, instead of 4 gifts, you need to buy 12. Make a list before hand and determine a spending range for each person.

5. Compare final amount, not the percentage

Festive sales are designed to catch attention with their loud and bright discounts

70% OFF!
Limited Time Offer!
Extra Rs.1,000 OFF!
Bank Offer!
Only 2 Left!

It's easy to get tempted by the magnitude of the discount rather than the final amount you'd be paying.

Make it a habit to compare the final amount for whatever you're buying.

For example:

Product A MRP: Rs.5,000/-, Discount: 40% = Final amount Rs.3,000/-

Product B MRP: Rs.4,000/-, Discount: 20% = Final amount Rs.3,200/-

The bigger the percentage, isn't always the deal.

Also compare if the bank discount has any fine print attached like a card, minimum amount, EMI, payment type, coupon code or membership. A 10% discount is only a good deal if you actually get it.

6. Use the 24-hour rule for big purchases

Big ticket items and subscriptions can wait.

If you're making a big purchase that isn't an immediate necessity, set a 24-hour reminder for yourself before buying it. Smartphones, Laptops, TVs, and appliances can wait for a day (or sometimes even a week).

Add the item to your wish list or bookmark the page and move on. When the reminder comes, re-visit the link and check the deal again. If you've still wanted it, you've probably made a rational choice about buying it.

If you've forgotten all about it, chances are - you didn't need it as badly as the sales pitch suggested.

7. Create a 'sale wishlist' rather than randomly browsing

One of the easiest mistakes to make while shopping online is to open the app without knowing what you're looking for.

You begin looking at one item and then another, and then another. Twenty minutes later, you've added seven random items to your cart.

Try the alternate approach.

Make a list of what you want to buy (your "sale wishlist") and then go shopping. Start with what you know.

For example: My Wishlist for October

Running shoes
Mixer grinder
A festive outfit
Two gifts
Bedsheets

Once the festive sales begin, look for the things on your list.

It'll change your approach to shopping from "What can I buy?" to "Can I find these at a good price?" which is a much safer way to think about it.

8. Don't get tempted by 'free delivery' and small spends

Big ticket purchases are obviously a problem but it's surprising how easily people get tempted by small spends during sales.

A phone case here, a candle there, some decorative piece, a kitchen organizer, an accessory, a trinket, and suddenly - you've spent another Rs.2,500. Small spends add up!

Remember to ask yourself if the item is something you'd have bought if there was no sale. If not, it's probably time to reconsider the purchase.

9. Set aside money for festivities separately

Your festival budget shouldn't override your other priorities. Your rent, electricity bill, grocery shopping, travel, education, regular subscriptions, and emergency fund must always come first.

You can use the envelope method for separating your festival money from the rest.

Split your total festival budget into the following envelopes:

Essentials: This should include whatever you need to cover your basic expenses. Money for regular monthly expenses that you'd have anyway.

Savings: The amount you've earmarked to save or invest according to your financial goals.

Festive Spending: The amount you've set aside for shopping, gifts, and other festival-related expenses.

Buffer: Money for emergencies.

By using this method, you'll always know how much you can spend on festivals without affecting your other priorities. If you've already used up your festive spending money, it shouldn't be easy to dip into your essentials wallet to buy a new outfit.

10. Leave some money unspent

It's tempting to spend every single rupee you've set aside for festivals. If you've created a Rs.20,000/- budget, it's only natural to want to utilise the entire amount.

But everything doesn't always go as planned.

Your sister's birthday might come along, or you may need to buy a train ticket, your phone charger might stop working, or your parents may decide to go out for a party.

You may need extra money for some last-minute expenses.

That's why it's important to leave a 10-15% buffer in your festival budget for such contingencies. If you've set aside Rs.20,000/- for festivals, you could treat Rs.17,000/- as your real budget and keep Rs.3,000/- as a buffer.

What About Credit Cards and EMIs?

Festive sales often come with attractive credit-card discounts and no-cost EMI offers.

These can be useful financial tools when used responsibly, but the discount should not become the reason for buying something you cannot comfortably afford.

Before choosing EMI, check:

• Total payable amount
• Processing fees, if applicable
• Tenure
• Whether the offer is genuinely no-cost
• Whether you already have multiple EMIs
• Whether the monthly payment fits comfortably into your budget

A Rs.50,000 purchase does not become a Rs.50,000 purchase just because the app displays it as a monthly instalment.

You are still committing to the full purchase.

Final Thoughts

The festive season does not have to become a financial burden.

You can enjoy the sales, buy gifts, decorate your home, treat yourself, even make a big purchase, if it really fits your plans.

The key is to decide what you want your money to do before the discounts start choosing it for you.

This October, instead of asking only: “How much can I save?” try asking: "How much do I actually want to spend?"

This question alone can make festive shopping much more fun and your January bank statement much less scary.

Frequently Asked Questions

How can I avoid overspending during the festive season?

Set a spending limit per category (gifts, clothing, travel and celebrations, etc.) and make sure you have a contingency for unexpected expenses. A wish list may also help to avoid unnecessary purchases.

How much money should I keep aside for festive shopping?

There is no standard answer. Your festive budget depends on your income, expenses and savings goals and existing financial commitments. Only use money that you can actually devote to discretionary spending.

How can I save money during festive sales?

Make a wish list before shopping and compare final prices across traders, check the bank-offer conditions and do not buy products for the sake of large discount percentages.

Is buying something on sale always a good idea?

A discount only reduces the price of a product. It does not make the purchase a good one. Always consider whether you need the product and whether it fits within your budget.

How can I control impulse shopping online?

Use a wish list, turn off unnecessary shopping notifications and maybe wait 24 hours before buying expensive non-essential items. Shopping with a predefined list can also reduce unplanned purchases.

Should I use a credit card for festive shopping?

A credit card can be convenient, but should only be used for discretionary purchases within a comfortable repayment capacity. Make sure to check the terms and conditions of any discounts and EMI offers before making a purchase.

How can I manage festive gifting without overspending?

Make a gift list and set a spending limit. This will help you avoid the number of gifts from increasing your total spending.

What is the best way to track festive expenses?

A simple phone note, spreadsheet or budgeting app will do. Just record each purchase and subtract it from your category budget so you know how much you have left.

Should I spend my entire festive budget?

No. Keeping a buffer can be a great way to prepare for any unexpected expenses or last-minute needs. If you still have some money left in the buffer, you can bring it forward to the next year's festive budget, instead of having to find something to spend it on.

How can SearchMyDeals help with festive shopping?

SearchMyDeals can help shoppers find deals and compare shopping opportunities across online marketplaces. A great deal, however, should only be considered if the product is actually needed and fits within the planned budget.