As we approach Ramadhan and eventually Hari Raya (as well as the other festive seasons at the end of the year) many of us would be busy preparing for the much-awaited season. In fact, this is the season where we tend to overspend. However, it needn't be that way considering we must save for rainy days that may lie ahead. Here is some basics for you to take away - a list stating how you can avoid splurging too much during the exciting season.
1. Prepare a budget checklist and stick to it
It's always useful to create a budget before you shop. A shopping list is great to keep you in check, added with a projected budget. Work based on your allocated budget but remember to make it realistic. Begin by valuing all that you need to spend on. Fix a budget and stick to it, as well as how much you intend to save. With limited financial resources, identify the most important things you need to spend on.
2. Travelling options
If you are travelling, plan ahead of your journey. With the Hari Raya season, heavy traffic is inevitable. Make sure you service your vehicle prior to travelling. This is to avoid any mishaps and inconvenience which may require time and money. If you are travelling by public transport, try to get your tickets as early as possible or during a sale. It pays well to plan ahead.
3. Be a smart shopper
Always survey the price of things and make comparisons. Is there really the need to buy branded goods? Are there cheaper generic alternatives of similar quality? Make a list of things to buy and bring that list with you. Sure, there might be a sale everywhere and the price of things will be cheaper but don't get excited in the rush just in case you end up overspending.
4. Try to recycle - change the mindset
Recycling your previous year's decorations opens creative avenues and also spurs you to save money. Even if it's the festive season, savings is important too.
5. Self-prepare
Record all your expenditures. Determine your fixed, variable and discretionary expenses. If you find yourself overspending, try to save by minimising your expenses to only what's necessary.
6. Cheaper options
As the festive season approaches, there will be shopping sales everywhere. Look out for the best deals and compare prices before making your final purchase. The excess money could go into savings or other necessities.
7. New garments - how many do you actually need?
It is the norm to have that spanking new baju raya and shiny shoes for the first day of Hari Raya. How about buying clothes which you know you will reuse in future so you know that you are using your money wisely. Is there a real need for expensive designer items and are they really worth the value of your money? Would you reuse them in future?
8. Buy what you need than what you want
A lifestyle change may prove fruitful for your finances. If you use your credit card, make sure you make a full settlement every month in order to avoid any outstanding which will accrue interest. Spend not for luxury but for real necessities.
9. Never forget your necessary obligations
It's only normal to get excited over the festive season. Allocate for your savings first. Make sure it is at least 10% of your net income. Only buy what you need and adhere to your budget. Never forget your usual monthly bills as they are fixed expenses. Spend wisely. If there is a need to purchase big ticket items, make sure it is a good investment. Keep things simple and practise delayed gratification. Take a few days to determine if you really must buy that new item.
10. Enjoy everything in moderation
Be disciplined and make saving a lifestyle no matter what the occasion. All you need is a little creativity and planning. Celebrate in moderation. After all, it's the bond between family and friends that matters.
With this, we hope you make smart decisions as the festive mood approaches. Here's wishing everyone a Selamat Berpuasa and a harmonious Selamat Hari Raya Aidilfitri in advance.