Many households are busy preparing for the festive season. But, many people didn’t realise that their excitement to celebrate Hari Raya often tempts them to overspend. This could be avoided if you manage your money wisely. It is not necessary to spend bucks buying new furniture, new curtains, a new car that end up you be in a financially burdened position. Below is money tips to avoid getting carried away with your spending:
1. Prepare a budget
Same like your monthly practice, you need to prepare a budget for your expenses for Hari Raya too. Often people thought that they can spend more when it comes to festive seasons – yes, you can but make sure it’s still within your budget. In your budget, add in allocation for the unexpected expenses such as emergency backup for car maintenance, buying food for unexpected guests and many more. You need to prepare a realistic budget and stick to it.
2. Set a checklist
Traditionally, Hari Raya is the time for the whole family and relatives to gather and spend quality time together. But, some prefer to shopping as many shopping malls offer discount and promotion during festive seasons. Keep focus and stick to your list. With all the sales and promotions, it is easy to spend on wants not on your need. Before making any purchase ask yourself these questions: 1) Do I need this? 2) Can I afford this? 3) Is there a cheaper alternative to my purchase?
3. Not everything needs to be new
Though it is the festive season, not everything in the house need to be new. You can always recycle and there will be no need to buy new ones every year. This applies to clothes, furniture, accessories, phones and cars too.
4. Cash advances is tricky
Many employers offer a salary in advance of payment date and bonuses during festive periods. It is important to note that salary advances and bonuses will be deducted from the monthly salary in future. Be frugal during festive seasons so that your monthly expenses are not jeopardised following festivities.
4. Cash or credit?
Only buy things using cash to avoid being financially burdened post-festive season. Using cash will let you be able to limit your purchases while sticking to the budget prepared. Credit card is only for emergency time only. Don’t simply swipe your card without thinking if you’ll be able to pay for it.
5. Excited to celebrate Hari Raya? Don’t forget to pay your bills
Ensure that you have allocated a portion of your salary to pay your monthly expenditure and all your monthly commitments. The allocated funds should not be mixed with the funds you intend to spend shopping in preparation for the celebration and the funds you intend to spend during Hari Raya. Pay off all the bills before you start spending money lavishly on Raya needs.
6. Do not forget to save
One must not neglect to put savings aside, though additional expenses are expected during festive seasons. It is recommended to put aside at least 10% of your monthly income for a rainy day. Festive month should be no exceptions.
Remember, the only essential must have for Hari Raya is family, there is no celebration without your loved ones around you to make the day grander.