The holy month of Ramadan is a time to fast, pray and give for the benefit of others. It is followed by EID, where Muslims celebrate with friends, family, and food.
However, surveys have shown that many families spend more than planned during Ramadan and EID. Some end up borrowing using credit cards or personal loans.
The discount galore on Cars, furniture, and almost everything else, makes it more difficult for people to stay within budget.
Inadvertently people end up making both small and big unplanned purchases during Ramadan. This put stress on their budget during the rest of the year.
Sometimes it could take more than a year to pay off the debt acquired from making these unplanned purchases.
The good news is that there is a way to enjoy Ramadan and EID without worrying about money. By creating a budget and sticking to it, families can have a guilt-free and stress-free celebration.
You can also plan to take advantage of discounts on cars, furniture, and other items during Ramadan without worrying about breaking the bank or acquiring debt.
Here are Six simple steps to guilt-free and debt-free celebrations.
- Create a generous budget for spending during Ramadan next year. Include small and big purchases you would love to make next Ramadan.
- Don't assume that a budget is a tool to restrict your spending. Look at it as an efficient spending plan supported by savings or surplus income.
- Create a vehicle to fund your spending budget for next Ramadan( Sinking Fund). Big companies do this regularly. They create a sinking fund to buy large capital-intensive assets in the future.
- Decide how much you have to save every month or every week to achieve your spending goal for Next Ramadan.
- Open a separate Savings/goal account and automate the savings.
- By Ramadan 2024, you will have enough savings to spend guilt & debt free. Repeat this process after every Ramadan.
Visit Ramadan to Ramadan Savings Challenge to learn more.
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