By V. Viswanand
With the onset of the festivities comes various kinds of expenditures. While many are for personal consumption, most households also plan key investments during these times be it in 
real estate, gold or any other form of financial value.
Therefore, balancing between ‘wants’ and ‘necessities’ can be a fine line to walk especially if you don’t plan finances well in advance. To ensure you loosen the purse strings in the right way, follow these simple tips to ease spending and maximize savings.
Evaluate expenses
Having a ‘special’ budget allocated for the festive season can help you estimate your spending threshold. While it is important to save for gifting, shopping and other kinds of expenses incurred, ensure an additional amount is kept aside for emergency spends including medical/health or unforeseen incidents such as an accident etc. Always exercise discretion while spending – not everything is a necessary purchase, therefore prioritize key requirements over secondary items in your list. This will also lead to lesser financial challenges and stress!
Invest in a financial protection tool
This is a good time to consider investing in a term insurance plan. Term insurance is a sound investment if you have dependents and are the sole breadwinner of the family. It is also useful if you have liabilities such as a home loan, a car loan or other debts. Term plans act as a safety net for your family and ensure that they remain financially independent and continue to live the lifestyle you provided for them, even in your absence. Some term insurance plans offer monthly payouts to the nominee (for a certain number of years), along with the lump sum 
amount (sum assured) that can provide a regular income.
Secure long-term future
Make it a point to expand investments into a variety of financial tools to grow your corpus and create a second stream of income. For instance, ULIPs (Unit Linked Insurance Plan) are life insurance cum investment options, which provide you with an opportunity to invest in different funds with a chance of multiplying your wealth with a protection cover. ULIP helps accumulate the desired amount within a specific period of market return. It is suitable for both salaried and self-employed individuals with dependents who seek an investment plan that offers the combined benefit of wealth creation and life insurance under a single policy. You can invest to secure your retirement, or plan your children’s higher education, or any other financial goals
Define goals and pay yourself first
Setting financial goals is a lifelong exercise and it’s important you evaluate your current financial portfolio and standing. The wise old dictum of ‘not putting all your eggs in the same basket’ should be applied here. Start early and ‘pay yourself first’ through systematic monthly savings and make changes as per your requirements – be it your child’s education, marriage or any other milestone, money will be needed for everything. Importantly, make sure to clear all 
your dues – credit card, pending loans etc so that you are not caught off guard later.
The one key lesson that we all have imbibed through the pandemic is to be always financially prepared. As per a survey launched earlier this year, 69 per cent of urban Indians were compelled to be more proactive about financial planning among other aspects. To bridge the gap between our earning and spending, it is important that we equip ourselves with the right knowledge and financial tools for a safe and secure tomorrow.