Be financially prudent this Ramadan
Ramadan is a very special time of year for many Muslims, but with the donations , and spending on food and gatherings, costs can soon add up so it makes sense to be financially prudent during this period of the year.
Spend what you can
It sounds so simple doesn’t it; only spend what you can. But do you really know how much money you have available to spend during Ramadan? If not, then it will become all too easy to overspend.
So, how do you know what you can afford to spend?
To begin, you’ll need your net salary, which is your pay minus deductions if you’re an employee, or if you run your own business the amount you can spend after making deductions for reasonable expenses, tax, national insurance etc.
Next, you’ll need to calculate your expenses. Your fixed expenses are your regular monthly bills, such as rent or home finance, utilities etc. Your variable expenses are the bills that change monthly, such as groceries, fuel or entertainment. A bonus of doing this is that you may find areas to save money which will benefit you all year round.
If you deduct your expenses from your net salary, you will know how much money you have available to spend at Ramadan. Do not worry if it is less than you imagined, in the current financial climate we all have less money. The good news is that Ramadan isn’t all about how much money that is spent. It is a time for spiritual reflection and growth, helping those in need, and spending time with loved ones.
Eat what you need
Do you really need all the food that is prepared for Ramadan? Ramadan is known as a time of moderation, but there is increasing concern about the amount of food wasted during the holy month. In fact, a survey last year found that 90% of British Muslims believe wasting food doesn’t reflect the true spirit of Ramadan.
It is tempting to eat and drink a great amount during Suhoor and Iftar – and so easy to buy more food than is needed. By avoiding, or limiting, the rich special dishes, and instead eating modest amounts of simple, wholesome food, you will not only help your budget, but your health too.
Planning your meals in advance may help you to avoid buying or preparing too much food. Plan to make the most of any ingredients you have by using them across multiple meals and use leftovers as the basis for other meals. When planning, make sure you know portion sizes.
If despite all these efforts you have more food than you can eat or store, then share it with your family, friends, neighbours and poor people. Feed a belly, not a bin.
Use what you have.
Don’t feel that you are compelled to buy new things during Ramadan and Eid.
For example, must you buy new clothes for Eid? The sunna is to wear one’s best clothes on Eid, so you could wear the best outfit that you already own. What about making gifts and cards? Eid is a time of happiness, togetherness, and sharing, and a thoughtful home-made card or gift would be a wonderful addition to the celebrations. You will be able to create something for your loved ones that reflects their personality and interests. After all, it’s the kindness behind the act that really matters. For Ramadan and Eid decorations, why not reuse existing decorations or make them at home? Simply search online for printable Ramadan decorations.
Plan ahead
It may seem strange to be talking about next year’s Ramadan before this one has begun, but when saving money, it always pays to think ahead. An important aspect of Ramadan is contemplation. If you decide that you’d like to become better at saving, then we have a number of award winning, Sharia-compliant products that let you profit from your savings. We have something to suit most budgets and you’ll be surprised how quickly your savings could grow. You can find out more about our range of savings products here.
