Festive shopping: How much should you spend from your monthly income?

Chakrivardhan Kuppala, cofounder and executive director at Prime Wealth Finserv, suggests a structured approach to ensure a financially sound festive season.

Kuppala suggests allocating 1-3% of annual income for the festive season.

"By planning ahead and saving this amount, you can cover your celebrations without straining your finances," he told CNBC-TV18.com.

If you haven't explicitly saved for the festivities, Kuppala advises to keep spending within 1% of your annual income. This approach prevents overspending and financial stress.

Kuppala underscores the importance of avoiding debt during the festive season.

"Sensible spending and reliance on your savings rather than credit cards should be your focus," he said.

When you visit markets or malls, the incredible discounts can persuade you to buy items that appear fantastic but have little use or gifting value. So, you should always buy what you need and avoid purchasing what you want.

Experts also advise consumers to buy goods that have great utility and durability. For example, the purchase of electronic items will hold significance since a lot of work now happens through their effective usage.

Frivolous expenses that would otherwise happen on items during these festive times can be avoided.

A lot of people even spend on otherwise useless purchases as everybody around them is doing so. However, experts say that one shouldn't spend just because others are spending.

Another thing to keep in mind is taking advantage of the various digital payment modes that offer the most convenience and bang for consumers’ buck. You should always go for a stress-free and rewarding experience.

According to Mahesh Shukla, CEO & Founder, PayMe, determining whether a short-term loan is the right financial solution for one's specific situation requires careful consideration of financial circumstances, needs, and alternatives.

"Primarily, an individual needs to evaluate their current financial situation, considering income, expenses, savings and outstanding debts. Before applying for a short-term loan, borrowers should always explore other options such as emergency savings and negotiating with creditors. Most importantly, borrowers should have a clear understanding of the loan type and go through every detail of it, including payday loans, personal loans, and credit card cash advances. Also, borrowers should compare different lenders to select the best interest rate offering, fees and repayment terms and go through the terms and conditions assiduously," Shukla said.