Christmas has arrived after being cautious for most of 2020 owing to the epidemic. And we’re all out shopping to our hearts’ content. And for individuals who have just started their first work, there is a need to be frugal with their money. However, there are a few tactics you may use to make the most of your shopping experience. Here’s how to get the most out of your Christmas gift shopping while minimising the agony.
Make a budget and stick to it to minimise overspending.
Businesses and malls have rolled out the dance floor with attractive cash incentives. They want you to spend till you’re blue in the face. But hang in there. COVID-19 has made it a challenging year for businesses and manufacturing. Because of the lockdown, they had a lot of unsold merchandise. They now want to sell in a significant way.
However, this does not imply that you should purchase items that you do not need. Make a financial plan. Contact your relatives before making a large-ticket purchase. You’d be amazed how valuable the input of teens and young ones will be when it comes to purchasing consumer devices and technology.
Examine zero-interest EMI plans carefully.
Retailers and e-commerce websites now provide no-interest EMI on anything from consumer electronics to readymade clothing and various other things. However, no-cost EMIs are not cheap. Although these EMIs make the goods seem incredibly reasonable, you may be paying 15-24 per cent in interest.
You may get a zero-cost EMI by foregoing the 4-5 percent cash discount given by a dealer. For example, you might get a Rs 48,000 smart TV for Rs 8,000 on a six-month EMI. However, the dealer’s Rs 3,000-4,000 discount would evaporate into thin air. If you are unable to make a cash transaction, you should only use a zero-cost EMI.
‘Buy today, pay for it later’ scams should be avoided at all costs.
A ‘buy-now-pay-later’ plan is a personal loan provided to clients by a fintech company. Consumers may pay later after buying using fintech loan companies like ePayLater, LazyPay, and Simpl. E-commerce sites like Flipkart, Amazon, and Bigbasket accept this payment method. All of your purchases are totalled up throughout a billing cycle, and you may pay for them later.
On e-commerce websites, you may use this plan to conduct small-value purchases ranging from Rs 100 to Rs 5,000. Depending on your profile, the investment might cost up to Rs 30,000. To attract your attention, fintech companies provide extra discounts, cashback incentives, and loyalty rewards.
You should use caution while utilising such credit facilities throughout the holiday season. Once the invoice is created, you must be prepared to pay the amount before the due date. Fintech companies levy late penalties of up to Rs 250 for late-payments and interest on the outstanding sum. LazyPay, for example, charges an annual interest rate of 26%.
Online researching, offline purchase
If you’re considering big-ticket purchases this holiday season, use e-commerce websites to research product features and costs. When you go into a showroom to make a purchase, the time you put into careful research might pay off handsomely. When you mention that the price is lower when buying online, the showroom will be obligated to give you a comparable, if not greater, discount.
Before making a purchase, decode the shopping offers.
Retail stores and online e-commerce sites promote 20-30% savings during the Christmas season sale. The hitch is that such incentives are only valid on total purchases of Rs 5,000 to Rs 10,000. Such discounts seem to be excellent just during promotions, but the fact is that the consumer ends up buying a lot of online gifts that they don’t need.
You must purchase five to ten times the amount of the discount coupon to redeem it. The business also places a limit on how much you may spend using a voucher.
Businesses have been known to raise prices and then give substantial reductions. These are psychological ploys used to manipulate human behaviour during the holiday season.
Additional savings with reward points, rebates, and coupons.
Diwali is also an excellent opportunity to cash in on credit card rewards. To purchase presents for your family members or yourself, check out your bank’s shopping points. Also, when buying using cards, see whether you can utilise loyalty points or coupon codes to get extra rewards. Regular consumers get discount coupons from e-commerce websites and credit card issuers.
Some banks that have collaborated with e-commerce firms give immediate cashback on credit card transactions of Rs 5,000-Rs 10,000. You should only buy anything if necessary; do not splurge only to receive fast cashback.
And once all of your celebrations are over, don’t forget to deposit that spare cash in a rainy day fund.
Use these suggestions to save money throughout the holiday season. Everyone’s finances have been hit hard in recent years, and you should do all you can to keep that little bit more.