We tend to spend more on holidays and special seasons. Here’s how you can prevent overspending this Ramadan.
This is a universal trend but given the increasing life demands and budget requirements, you can experience the fulfilling holiness of the month without the pressures of overspending and timing bumps.
1. You don’t have to sway off the budget.
Instead, plan financially for Ramadan at least two months in advance.
2. Most of us pile up extra clothes, kitchenware, unwanted furniture and other home items throughout the year. Call a charity organization to pick up your goods.
Book an appointment at least one month ahead. It takes a lot of time and effort to sort through the items and prepare for redistribution.
3. For Eid, try to plan your gift purchases early.
All consumer businesses anticipate high demand and bump up their prices.
4. Keep enough cash safely at home or at the office.
As ATM machines often malfunction due to excessive usage.
5. Limit visits to the banks for pressing matters such as cashing or depositing a cheque.
Use online banking for transfers, statements and other needs.
6. Check out your account balances if you wish to compute charity dues.
The Zakat (Islamic tax) rate is 2.5 percent of net profit on capital gain and idle cash over a one-year cycle. Do the math and set these amounts aside.
7. Ramadan banking hours are 10 a.m. – 4 p.m. (with prayer times in between). It is best to visit in the early opening hours between 10 and 12.
Also note that banks usually break by Ramadan 27-28 (mind the weekend) therefore, I recommend that you finish off all pending matters before mid-month.
Islam’s biggest season of the year is the Holy month of Ramadan. Not only do we spend more, but we tend to indulge in almost every aspect of daily living: staying up late, TV, food and shopping.
Reem Asaad is an inspirational Saudi woman. She is a wife, mother, writer and financial adviser. Asaad was ranked the third most powerful Arab Woman in 2012 by Arabian Business Magazine.