Hello Readers! 

All set for Diwali shopping or still worrying, how to maximize the gain, and minimize the pain in Diwali shopping?

After our finances are badly hit by the pandemic in 2020, Diwali is upon us. Obviously, we are shopping for Diwali with full enthusiasm, but at the same time, we need to be prudent towards your spending because the pandemic has not ended yet.

Here are some tricks that can help you make the most out of your Diwali shopping, without ending your Diwali in pain.

Your Budget Will Help You Avoid Overspend, Prepare It!

On the occasion of Dhanteras and Diwali, shop outlet, malls, eCommerce sites, everyone is offering big discounts and more attractive offers that are much difficult to refuse or avoid. Eventually, shoppers will get attracted to these offers and will shop till they drop. If you are also getting affectionate towards these offers, then let me warn you. It’s been a tough year for companies and manufacturers due to COVID-19. It might be possible that they have a lot of unsold goods because of the lockdown. Now, they want to sell big time.

It will be easier for you if you prepare a list of things that you want and in what quantity. This would help you buy the only thing that you want and sticking to your budget will avoid overspend. When making a big-ticket purchase, consult your family members as well. You will be surprised how useful the opinion of teenagers and young adults can be in deciding on consumer electronics and tech products.

Looking For Products On Zero-Cost EMI, Examine Scheme Closely!

Almost all of the e-commerce sites and many retail outlets also are offering No or Zero-cost EMI, this generally attracts the investors, and make them purchase the products. These EMIs make the product appear very affordable, but you may be incurring a 15-24 percent interest cost. A zero-cost EMI becomes available to you by sacrificing the 4-5 percent cash discount offered by a dealer.

For example, if you buy a refrigerator worth Rs 48,000 at a zero-cost EMI of Rs 8,000 for six months, then you might lose the Rs 3,000-4,000 discount from the dealer. Thus, avail of a zero-cost EMI only if you are unable to make a cash purchase.

'Buy Now, Pay Later' Schemes Are Debt Traps To Be Avoided!

Fintech lending firms such as eBay Later, LazyPay, and others allow consumers to pay later after shopping. This payment option is available on e-commerce websites such as Flipkart, Amazon, and Bigbasket.

“Buy Now, Pay Later” scheme is similar to a loan given to customers to buy their products. Shoppers can make small-value transactions using this scheme on e-commerce websites, ranging from Rs 100 to Rs 5,000, this limit can even go to Rs 30,000, based on your profile.

Well, I advise be careful and read all the terms and conditions carefully, while taking this kind of credit, during your Diwali shopping. You have to be ready with the money before the repayment due date, once the bill is generated. In case of delayed payments, the fintech firms charge late fees up to Rs 250 and there is interest charged on the outstanding amount. For instance, LazyPay charges 26 percent as annual interest.

It is advisable that if it's not urgent then postpone your big-ticket purchase and don’t take a burden of new EMIs in this pandemic situation.

Research Offline And Buy Online

This is the best way to buy a product, research its features and costs on different e-commerce sites, and then compare them. And finally, step into a showroom to purchase it. In the showroom, discuss the offers while buying the product online, you might get similar discounts or maybe a bigger discount.

Do Use Cashback and Coupons For Additional Discounts

Diwali is the most appropriate time to utilize all your rewards. Check your bank’s shopping points to buy gifts for your loved ones or for yourself. Also, check if you can use loyalty points or discount coupons for additional benefits while shopping with cards.

And after all your festivities get done, don’t forget to put away that little sum in an investment for a rainy day.

For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.

Happy Investing!

(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee of future returns).