Dubai: Ramadan is the month of fasting and festivity, and it’s also a time when family bills are inclined to rise typically, particularly when in a joyful, charitable or a celebratory temper.
Shopping for presents for family members, donating cash for charity and spending further on grocery purchases and dinners – are among the many few spending traits broadly noticed because the norm this month. Festivity budgeting therefore turns into important to handle cash for any family within the UAE.
For Dubai-based resident Raza Ur Rahman, their household typically spends round Dh2,000 to Dh3,000 extra on meals grocery purchases throughout Ramadan. One other important spending for his or her household is contributions of Zakat (type of almsgiving) in the course of the month of fasting.
“These bills for us are nicely decided and recognized prematurely. Even the quantity in meals improve is definitely manageable, and we do not tweak our budgets to take care of Ramadan bills,” mentioned Rahman.
Budgeting Tip #1: Go for bulk shopping for in the beginning of Ramadan
Rahman ensures the rise in spending of their festive expense is maintained inside an affordable vary. “We desire to go for bulk shopping for in the beginning of Ramadan; this helps us to cut back spending and general administration of our funds in the course of the month.”
“On-line purchasing for us has general elevated for the reason that final yr. I’ve discovered that on-line buys are giving higher worth for cash and makes issues simply comparable,” added Rahman, who works as a finance controller in a multinational medical units and healthcare firm.
“Nonetheless, for recent meals purchases – vegatables and fruits, we nonetheless desire to go to the shops to purchase because it’s troublesome to find out the standard on-line,” he mentioned.
Budgeting Tip #2: Search for festive offers from the retailers and never presents on bank card
Rahman avoids utilizing a bank card, particularly for festive purchases. He believes it might instigate impulsive purchases as, throughout Ramadan, the tendency to buy further is usually noticed. “I keep watch over low cost presents from the retailers, not the presents from bank card banks.”
“Whether or not it is meals or reward buy for household/relative or one thing for the house, there’s something on provide throughout Ramadan, and retailers usually promote the offers on merchandise. I think about exploring these presents as choice than shopping for on credit score. Nonetheless, we persist with a spending technique, to search for issues that we’d like somewhat than being carried away with presents.”
Has restrictions on Iftar gatherings modified how we price range for Ramadan?
“For us, the distinction between Ramadan this pandemic and the sooner regular days of fasting is the gatherings for Iftar events. This isn’t taking place like pre-COVID days, making Ramadan celebrations less complicated than traditional. And this may imply substantial discount on spends for a lot of households,” mentioned Rahman.
“Because of the restrictions essential for COVID-19 security, cash spent on internet hosting household and associates will deliver us an anticipated financial savings of 30 per cent of our festive expense that’s about Dh1,500 of what we spend on outings and dinners. Nonetheless, this yr we’ll attempt to give the cash we save for Zakat, enjoying our half in serving to these affected by the disaster,” Rahman added.
Budgeting Tip #3: How saving pre-Ramadan may also help alter foreseeable further bills
Ahmed Shaikhani, a Dubai-based businessman, begins to avoid wasting cash for Ramadan spending, round two to a few months earlier than the month begins. He places apart a mean of 5 per cent from his earnings, and it helps him meet his household’s extra calls for and fund different cultural necessities of Ramadan.
“The principle space of purchases for us is meals groceries, procuring, dwelling décor and Eid presents. Out of our Ramadan month price range, we normally spend 40 per cent on meals, 15 per cent on dwelling décor, 25 per cent on procuring and 20 per cent on Eid presents as it’s an integral a part of our cultural values. I guarantee my household sticks to the allotted price range in every class and would not overspend.”
Budgeting Tip #4: Understanding easy methods to use budgeting apps to handle Ramadan bills
Shaikhani makes use of a budgeting app to verify on his bills. “I put all my forecasted bills one time within the app, and it alerts me in regards to the standing of my spending.”
“We set a deliberate price range for groceries and residential décor, however typically, for us throughout Ramadan, the grocery bills are lesser than regular days. Nonetheless, the house décor and procuring spend will increase and generally turns into laborious to handle, mentioned Shaikhani. “So, we principally attempt to purchase issues earlier than Ramadan to divide the burden.”
That is when itemizing out the required merchandise and desires turns into important find presents and Ramadan reductions – serving to one get a greater benefit on costs, Shaikhani added. “All these go a protracted solution to benefit from the month burden-free.”
Cash specialists recommend how one can deal with bills throughout Ramadan
An earlier survey by Dubai-based value comparability web site Souqalmal had proven 51 per cent of the survey respondents admitted to spending greater than traditional throughout Ramadan. And 78 per cent of respondents indicated that they exceeded their budgets in the course of the fasting month.
As a number of residents could also be battling a tightening of funds within the backdrop of the pandemic, Ambareen Musa, founder and chief govt of Souqalmal.com suggested individuals to not go overboard with their Ramadan spending.
Budgeting Tip #5: Quickly maintain off on some current family bills
Musa really helpful individuals reduce on their different family bills to make room for the additional cash they may want for particularly spending on Ramadan actions this yr.
“In search of money-saving offers and reductions is a brilliant solution to go when procuring or eating out throughout Ramadan.
“Go to your financial institution’s web site to remain on high of the newest reductions and presents on Iftar and Suhoor eating throughout Ramadan. Some banks provide reductions of as much as 20 to 30 per cent in your credit score or debit card spend.”
Different low cost web sites similar to Groupon, Cobone and VoucherCodesUAE.com additionally mean you can decide and select low cost vouchers that may aid you save, she added.
Budgeting Tip #6: Overlooking phrases and situations of provide offers can value dearly
Throughout Ramadan, numerous presents and promotional gross sales are marketed to individuals, in an effort to get them to half with their cash in an impulse purchase.
Hassan Owais Kazmi, head of property division at Abu Dhabi Islamic Financial institution (ADIB) mentioned though many presents are fascinating, individuals should not make purchases on impulse however think twice about what they’ll afford given their circumstances. “That is notably vital with the larger ticket gadgets, similar to vehicles or jewelry,” Owais Kazmi mentioned.
“Learn the small print round a suggestion and all the time verify whether or not there are any deferred charges or prices which will place stress in your funds at a later date.”
Usually, it’s best to make use of playing cards for smaller gadgets and different financing choices for greater purchases, Owais Kazmi additional defined. “It’s simpler to repay smaller gadgets on the finish of every month – a key precept for utilizing playing cards to keep away from revenue charges and different fees,” he added. “Additionally, verify the advantages your financial institution is providing throughout Ramadan.”
Budgeting Tip #7: Itemise the price of all it’s worthwhile to purchase in your Ramadan wish-list
Carol Glynn, finance coach at Acutely aware Finance Teaching, steered itemising the costs for the whole lot it’s worthwhile to perceive what is going to you pay to buy each merchandise in your listing.
“Remember life exterior the festive season. If you happen to monitor and evaluate your funds commonly, you’ll already know your month-to-month monetary wants.
Glynn additional really helpful allocating the price range primarily based on class and rating of what’s important.
“For instance, you probably have Dh1,000 to spend and also you determine meals is an important, subsequent is presents and the remaining are all equal. On this case, you would spend 40 per cent on meals – Dh400; 30 per cent on presents – Dh300 and the remaining 30 per cent – Dh300 break up between clothes and different celebrations similar to consuming out, and so on.”
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