Shopping vs investing: How to spend in festive season?

It is raining discounts, cashback, and offers as big brands, e-commerce companies, retailers slug it out to woo customers in the festive season. And it is not easy to resist indulgence in shopping amid easy access to credit cards, buy now pay later schemes, and plenty of liquidity in various forms as interest rates remain at historic lows.

While shopping is unavoidable given modern-day requirements and to celebrate moments in life, mindless spending can be a recipe for a financial crisis. It is imperative to plan your purchases carefully and not spend the entire budget on shopping.

Experts suggest a part of the money should be saved or invested to reap the benefits of wealth creation.

Considering we have learned many lessons through the pandemic, one of them is knowing the importance of having financial security, perhaps it is advisable to invest or save a portion of our money, said Anil Pinapala, CEO & Founder of Vivifi India Finance in interaction with CNBC-TV18.

But the fact is that this shouldn’t come at the expense of ‘no shopping’ at all.

Gradually coming out of a global pandemic, it is more important than ever that we start celebrating the smallest things in life.

“The festive season, especially in India is all about glitter, gifts, sweets, smiles and a lot more and these happy memories at no cost should be lived with an added guilt or pressure of saving and investing cautiously. So, saving and investing money and resources should not be a one-off thing on the to-do list. It should be a part of the monthly or periodic routine. Some gifts like cash and jewellery can become a part of wallet and can be repurposed over time,” said Nitin Mathur, CEO at Tavaga Advisory Services.

Mathur further said that people should understand that it’s important to be judicious with resources but not at the expense of happiness and memories.

Echoing Mathur’s views, Pinapala added, "We have had a rough year last year when even festivals couldn't lift up our spirits. But here we are today with life giving us another chance to celebrate, so this festive season definitely calls for some indulgence. This festive season, enjoy to the heart's fullest with friends and family and consider saving and investing as a regular habit."

Festivals are incomplete without shopping, and one should definitely go for it. But prioritising the shopping list and avoiding some unnecessary expenses in order to invest will be a wise decision.