Some people believe that spending decreases during the fasting month of Ramadan; however, in reality, it often increases. This rise in spending can be attributed to lifestyle changes and rising prices. It’s important to be wise in managing our finances during this time. We should avoid allowing our spending to spiral out of control during Ramadan and through Eid al-Fitr, as this could lead to financial struggles in the following month.
Dr. Rio Dhani Laksana, M.Sc, CFP, CSA, CAPM, a lecturer in Financial Management at the Faculty of Economics and Business (FEB) at Unsoed, offers some tips on managing finances during Ramadan:
- Create a Budget Plan
Create a financial budget for Ramadan by organizing your funds into specific categories. Separate the money needed for shopping for suhoor and iftar, purchasing Eid clothes if necessary, and covering other daily expenses. It’s also wise to set aside some reserve funds for unexpected expenses. When Ramadan begins, be sure to adhere to the budget you’ve created to effectively manage your finances.
- Prioritise your expenses
Once you have completed your budget plan, the next step is to organize it by priority. Start with your most significant expenses that are also your top priorities, such as paying regular installments. After that, move on to daily expenses like grocery shopping. Finally, create a list of special expenses, which may include charity donations, purchases for Eid clothing, and other similar items.
- Prepare Your Own Meals
Buying food for suhoor and iftar outside the home can significantly increase your expenses during Ramadan. To help manage your budget, consider cooking your own meals for these occasions. A helpful strategy is to prepare a menu for the entire month. This will allow you to shop according to your needs and minimize unnecessary spending.
- Let’s Manage Our Desires
Many people notice that their expenses tend to rise during Ramadan. This increase often results from an inability to resist temptation and from impulse buying. Common habits that contribute to overspending during this month include breaking fast at restaurants, purchasing new clothes and shoes, traveling back to one’s hometown, and giving gifts. Moreover, many online and offline shopping platforms offer significant discounts during this period, which can further encourage spending. It’s essential to recognize that if these habits continue due to a lack of self-control, your financial situation will likely be in disarray in the following month.
- Say No to Debt
Avoid taking on debt merely to fulfill consumerist desires during Ramadan. This applies to credit card use as well! Try to shop within your means. Make the most of your salary, and be grateful for your blessings, including your holiday bonus. Embrace Ramadan with gratitude and simplicity. Don’t let the true meaning of this month be overshadowed by an inability to control your desires.
- Maintain Budget Commitment
Maintaining a commitment to using funds during Ramadan in accordance with the budget is essential. It’s important not to let the plans we establish when creating the budget go to waste simply because we fail to adhere to them during implementation.
Here are some tips for managing your finances during the month of Ramadan. Keep in mind that there are still other months ahead that you’ll need to navigate in life. Therefore, it’s wiser to focus on increasing your acts of worship during Ramadan rather than incurring unnecessary expenses.
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