As we go through the holy month of Ramadan and finally Syawal where Hari Raya Aidilfitri will be celebrated across the country, many households are busy making preparations for the festive season. This pleasure often tempts us to overspend. However, if we manage our funds wisely, we are not necessarily financially burdened with the Hari Raya celebrations and this is also true for other festive seasons.
Here's a quick guide to avoid getting carried away with our expenses:
1) Prepare a budget
As with your monthly practice, prepare an estimate of your expenses for the festive season. Add provisions for unexpected expenses that come with the celebration. Remember that you need to prepare a realistic budget and adhere to it. Make sure you don’t buy too much food during the month of Ramadan, it’s not good for your wallet and health.
2) Make a checklist
Before you leave home to shop, make sure you make a realistic checklist of all the things you need to buy. Most importantly, stick to the list! A shopping checklist will help you focus only on the things you ‘need’ and not the things you ‘want’. With all the sales and promotions in the festive season, it’s easy to also spend on ‘wants’. Make sure the values of the items in your checklist relate to the estimates provided in advance.
Before making any purchase, ask yourself the following questions:
• Do I need this?
• Can I buy it?
• Is there a cheaper alternative to my purchase?
3) Be a wise buyer
Keep an eye on the discounts, what stores are selling and how much they cost. This does not mean that you spend more because the price is cheap. Shop for the best prices and promotions on offer. The Internet also serves as a platform to become a smart shopper. You can compare the prices of different stores and also check if online purchases are available and cheaper for the same product.
4) Not everything needs to be new
While this is the festive season, not everything in the house should be new. Decorations can be recycled and there is no need to buy new ones every year. This also applies to clothing, furniture, crockery and accessories.
5) Take a cash advance
Many employers offer pay before payday and bonuses during the festive season. One’s attitude and spending habits are important here. It is imperative that one is responsible for this salary increase and bonus and it will be deducted from the monthly salary in the future.
We urge Malaysians to save during the festive season so that their monthly expenses are not disrupted due to the festivities. We advise Malaysians to prepare a budget and live according to their needs during the Hari Raya celebrations.
6) Cash vs. credit
Only buy items using cash to avoid being financially burdened after the festive season. This way you will be able to limit your purchases while following the budget that has been provided. If you make a credit card purchase, make sure that you will be able to pay it off in full so that the arrears do not accrue interest.
7) Make travel plans in advance
Plan your trip back to your village in advance. If you are driving home, be sure to send your vehicle for thorough service before traveling. If you choose to travel by bus, make sure you have purchased your bus ticket in advance to avoid paying a high price for the ticket and to avoid disappointment if the ticket is sold out due to increased demand. If you are flying home, look for promotions on the airline first. If possible, travel with a budget airline to get value for money and when tickets are purchased before the travel date, the price is lower than the regular price.
8) Allocate current monthly expenses and pay your bills before the festive season
Make sure that you have set aside a portion of your salary to pay for your current monthly expenses and that all of your monthly commitments have been paid. The funds allocated should not be mixed with the funds you want to spend in preparation for the festival and the funds you want to spend during Hari Raya. By allocating this money, you will not be in a difficult situation after Hari Raya.
9) Don't forget to save
While additional expenses are expected during the festive season, one cannot ignore savings. Ideally we set aside at least 10% of our monthly income as savings for rainy days, festive months should not be an exception.
The festive season is an annual celebration and therefore gives us a lot of time to save in advance for the festival. This habit will give you peace of mind when the festivities arrive because you have allocated extra funds (saved for a certain period of time) and expenses will not burden you from the budget.
Remember, the only important thing for Hari Raya is family, there is no celebration without your loved ones around you to make the day even better.
We would like to take this opportunity to wish Selamat Hari Raya Aidilfitri, Maaf Zahir dan Batin to all our friends who are Muslims and hopefully this Raya will be filled with many pleasant memories for all Malaysians.
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BUSINESS & MONEY