Start with a Festive Budget
Before the sales lure you in, the most crucial first step is to create a budget. The excitement of festivals can lead to impulsive spending and financial strain later. Take a realistic look at your finances and decide on a total amount you can comfortably
spend on all festive activities, including gifts, new clothes, decorations, and food. Break this down into categories to stay organized. Having a clear spending plan helps you prioritise purchases and resist the temptation to overspend. Consider creating a separate festival fund or setting aside a portion of your income in the months leading up to the celebrations. This proactive approach ensures you celebrate with money you have, not money you have to borrow.
Conduct a Digital Payment Health Check
With UPI being a primary mode of transaction, ensure your digital wallets and apps are secure. Check if your apps are updated to the latest version, as these often contain critical security patches. Review your linked bank accounts and daily transaction limits. It is also a good practice to set strong, unique passwords for each payment app and enable multi-factor authentication where available. This adds an extra layer of security, making it harder for unauthorised users to access your accounts. Regularly checking your transaction history can also help you spot any suspicious activity early.
Review Your Credit and Debit Cards
Take a moment to inspect your physical cards. Check their expiry dates to avoid payment failures during checkout. Review your credit limit to ensure it can handle your planned purchases. Many banks now offer apps that allow you to enable or disable features like international transactions, online payments, or contactless use. For security, keep features you don't use regularly turned off. Also, familiarise yourself with the rewards and cashback offers on your cards to maximize savings during festive shopping. Setting up transaction alerts via SMS or email is another smart move to keep track of all card activity in real-time.
Approach 'Buy Now, Pay Later' with Caution
Buy Now, Pay Later (BNPL) schemes can seem like a great way to make large purchases more manageable. While they offer convenience, they are a form of credit and come with risks. The ease of use can encourage overspending and lead to debt accumulation if not managed carefully. Before opting for a BNPL plan, read the terms and conditions thoroughly. While many offer zero-interest periods, late payment fees can be high, and missing a payment can negatively impact your credit score. Use BNPL for planned purchases rather than impulse buys and ensure the repayment schedule fits comfortably within your budget.
Secure Your Online Shopping Accounts
The festive season is a peak time for cybercriminals. Before you start browsing deals, secure your accounts on major e-commerce platforms. If you use the same password across multiple sites, now is the time to change them to strong, unique ones. Avoid saving your card details on websites for convenience. While it saves time, it also creates a security risk if the site is ever breached. Instead, enter your details for each transaction or use tokenization where offered by your bank. Always ensure you are on a legitimate site by checking for 'https://' in the URL, which indicates a secure connection.
Stay Alert for Festive Scams
Fraudsters take advantage of the shopping rush by creating sophisticated scams. Be wary of unsolicited links in emails or messages promising unbelievable deals, free vouchers, or cashback. These often lead to fake websites designed to steal your personal and financial information. A common UPI scam involves fraudsters sending a 'Collect Request' or a QR code, tricking you into authorising a payment instead of receiving one. Remember, you never need to enter your UPI PIN to receive money. The National Payments Corporation of India (NPCI) advises users to always complete payments within the official app or website and not on external links. If an offer seems too good to be true, it probably is.
