Budget disrupted by Diwali expenses:Adopt 7-day money detox plan; learn from experts where how to cut expenses

Diwali is a time to share happiness, give gifts to loved ones and decorate your home. During this period, it is natural to spend on clothes, sweets, gifts and other stuffs. However, it is also important to keep your budget in mind while shopping for the festival, so that savings and expenses for the coming months are not overlooked during this time of celebration. For this, you can start planning now to improve your financial habits after Diwali. A money detox is a useful approach in this direction. It involves steps such as tracking expenses, identifying unnecessary purchases, reviewing credit card bills and making savings a regular habit. That is why, today, we will discuss money detox. We will also learn- Expert-Kushagra Mohan, Financial Expert, Co-founder, Niksepa Capital, Lucknow Question-What is a money detox? Why is it important? Answer-Money detox means reviewing your financial habits and improving the way you use money. Just as diet and daily routines are improved to keep the body healthy, it is important to pay attention to your spending, saving and borrowing habits to improve your financial health. Let us understand this in a little more detail through pointers: Question – How can you calculate how much you spent during Diwali? Answer – Understand it through these pointers: Question-Which expenses can be cut after Diwali? Answer-Understand through these pointers: Remember to cut back only on expenses that will not affect your everyday needs if postponed. Question: How do you create a seven-day money detox plan? Answer- In such a situation, you can follow a seven-day money detox plan to get your finances back on track. It includes steps such as tracking expenses, cancelling unnecessary subscriptions, reviewing debts and improving saving habits. See how to create one in the graphic- Understand these in a little more detail- Day 1 Put the brakes on spending Day 2 Audit your expenses Day 3 Automate your savings Day 4 Cancel Unnecessary Subscriptions Day 5 Take stock of your debt Day 6 Improve Your Budget and Financial Goals Day 7 Review Your Progress Question-The credit card bill has increased after Diwali shopping. What should you do first? Answer-Understand it through these pointers: Remember that paying only the minimum amount due does not mean you are free of debt. Plan to repay the remaining amount as soon as possible and check the interest rate and other terms set by the card-issuing bank. Question- Is the 50:30:20 budgeting rule still useful after Diwali? Answer- Yes, the 50:30:20 budgeting rule can be useful for reorganising your budget after Diwali. After overspending during the festival, this rule helps divide monthly income among different needs and keep expenses under control. Question- What is the 50:30:20 rule, and how much money is allocated to requirements, wants and savings? Answer- It is a method of budgeting in which monthly take-home salary is divided into three parts. Its purpose is to maintain a balance between meeting essential expenses, spending on wants and saving for the future. For example- If your in-hand salary is ₹30,000, you can set aside ₹15,000 for needs, ₹9,000 for wants and ₹6,000 for savings and investments. This is a general guideline. If your essential expenses or debt are higher, you can change the ratio according to your financial situation. Question-Are there emotional reasons behind spending habits as well? Answer- Yes, spending habits are often driven by emotional reasons as well- Common questions and answers about money detox Question: How can one balance saving and essential expenses on a low salary? Answer: First, prepare a budget for essential expenses such as rent, groceries and EMIs. Then set aside a small amount for savings according to your means. You can increase your savings by cutting down on non-essential expenses. Question: How much money should an emergency fund contain-enough to cover how many months of essential expenses? Answer- As a general rule, aim to set aside an amount equivalent to three to six months of essential expenses. Question- Should you continue your SIP after Diwali or pause it for some time? Answer- If continuing your investments is increasing financial pressure, make a decision based on your situation. Question- How should you plan in advance for Diwali or other major expenses so that they do not become a financial burden at the time? Answer-Estimate your major expenses and set aside an amount every month. For example, save ₹2,000 for 12 months to accumulate ₹24,000. This will reduce the need to borrow during the festival.