Avoid financial shock by spending smart
AS TAKAFUL Brunei Keluarga Sdn Bhd (TBK) encourages smart spending, the Islamic Financial Planning services offered by TBK also aim to educate and create awareness about planning for financial goals. The festive season is an exciting time of the year, where one is tempted by commercials to indulge in shopping sprees at fashion boutiques, imploring to ‘look great and fabulous’, purchasing designer brands and spending on a variety of cuisines. These are common during Ramadhan and Syawal. Being the most festive month in the Islamic calendar, one should also be mindful not to waste money. TBK sharing some financial tips for the public stated that the public should brace for the subsequent financial shock when the festivities have passed and its back to regular days. There are ways to enjoy this year’s festive season without causing a financial burden yet still enabling to shop responsibly. They are by observing/practising six simple financial planning tips to avoid overspending this festive season. First, allocate an amount of your budget to spend for the festive season and make a commitment to only spend the allocated amount and try not to allow yourself to be pressured even by your children or close family into spending more than you budgeted. Once you have a budget, list down the things that you need to get ready for the festive season and try to think through all the different aspects of festive season spending, which may include Hari Raya clothes, food, paint jobs and lighting decorations for your home and money for the green packets. Look back at your list and go through it again and always start with the things needed before listing out the things wanted as it is important in financial planning to identify between wants and needs. The decorations can be recycled and there will be no need to buy new ones every year because it’s the festive season. Not everything needs to be new. Bear in mind that trying to impress friends and family with new furniture or a bigger TV set does not benefit you financially. Don’t force yourself to go into debts if you can’t afford something. Buy things that you can only afford to pay by cash or Debit while using the Credit card only for emergencies. Every time you spend during the festive season, always have a look at your initial budget to keep track of what you spend. It’s a psychological trick and when you see the amount getting lower, you don’t want to spend and you tend to save it instead. Avoiding overspending during the festive season may not be easy, but requires discipline to control yourself from spending too much. Have a happy and memorable festive season by avoiding bad debts and keeping your finances under control can help you keep the other challenging aspects of the holidays under control as well. The festive season is a time to be thankful for your family and friends, and shouldn’t be about burdening your finances. Have a peace of mind, knowing that you’ve managed your expenses well.