Budgeting for Seasonal Expenses
Plan for irregular but predictable expenses.
Common Seasonal Expenses
- Diwali gifts/shopping (Oct-Nov)
- Festival travel (Dec, Apr)
- Property tax (annual)
- Vehicle insurance (annual)
- Wedding season (Dec-Feb, Apr-Jun)
- School fees (Jun, Dec, Mar)
- AC servicing (summer)
The Mistake
Not budgeting for these → Credit card debt → Interest trap
Solution: Sinking Funds
Example: Diwali shopping = ₹30,000 every year
- Divide by 12 = ₹2,500/month
- Save ₹2,500 monthly in separate account
- When Diwali comes → ₹30K ready!
Annual Irregular Expenses Sheet
| Expense | Month | Amount | Monthly Saving |
|---|---|---|---|
| Diwali | Oct | ₹30K | ₹2,500 |
| Summer vacation | May | ₹50K | ₹4,200 |
| Car insurance | Aug | ₹24K | ₹2,000 |
| Property tax | Mar | ₹12K | ₹1,000 |
| Total | - | ₹1.16L | ₹9,700 |
Set aside ₹9,700/month → Never scramble for seasonal expenses!
🎯 Pro Tip
Create a "Festivals & Events" SIP of ₹5-10K/month. When expense comes, redeem that much, continue SIP.
Quiz
Test Your Knowledge
Test Your Knowledge
Question 1 of 1
1. What is the main concept covered in this lesson?
Key Takeaway: Understanding Budgeting for Seasonal Expenses is essential for making informed financial decisions.