Planning for festival and annual expenses in India

Large seasonal expenses are a regular part of Indian household finances. They hurt only when they are treated as surprises.

1. Look back at last year

Check what you spent around the main festivals and events last year. That is the best estimate for this year, adjusted for inflation.

2. Start setting aside early

Six months before a big season, begin a small monthly contribution. The earlier you start, the smaller each instalment is.

3. Set a limit per event

Decide the total for gifts, clothing, food and travel for each occasion. Without a ceiling, festive spending drifts upward.

4. Avoid financing the festival

Putting festive spending on a card and carrying the balance turns a few days of celebration into months of interest. Pay in full where you can.

5. Review afterward

Note what you actually spent against the plan and adjust the figure next year.