Spend wisely and don’t succumb to temptations during Raya
KUALA LUMPUR: Into the final week of Ramadan, the Hari Raya festive atmosphere is slo being felt everywhere. Businesses, small time traders or shops, hypermarkets and even online businesses are in overdrive mode to ramp up sales before Muslims celebrate Hari Raya next weekend.
With the rising cost of living and the rising prices of the necessities many Muslim consumers, on the other hand, have been persevering to keep their festive spending in check.
Yet many end up overspending after giving into the never ending temptations to buy. Some may think what more Hari Raya comes only once a year, so what’s wrong in spending more. In the end one ends up over spending without thinking of the consequences.
The temptations to spend are many. Ramadan bazaars have mushroomed everywhere with shops and shopping complexes luring shoppers with their myriad of products and discounts. Cyber consumers are not spared from the same desire as there is an online promotions galore as well for the festive season.
Hence, it is not surprising the expenditure during the festive period increasing up to three times. The mathematics is simple, if one spends about RM600 on the other months the figure may go up to RM1,800 during the festive month.
“With the depreciating Ringgit and high cost of living, the actual figure can go up four fold,” said Consumer Financial Expert Associate Prof Dr. Mohamad Fazli Sabri.
While consumers are quick to lament on the rising prices of products and services, that contributes to a higher cost of living, they appear indifferent when comes to reigning in their spending including this time around.
Mohamad Fazli’s study on the Malaysian pattern of spending during Hari Raya in 2016 found that 55 percent of the consumers found their expenditures doubling and 5 percent found the expenditure three times more compared with other months.
The online study using 700 respondents also found 79 percent of them prepared additional budget for Hari Raya. However, even among those who budget their spending beforehand 82 percent of them end up spending beyond their budget.
“This only goes to show most of the consumers lack discipline in spending within their budgets and they have to dig in more into their financial resources to cover the expenditure incurred during the festive period, “he said.
While women love to shop, surprisingly it appears they fare better when comes to spending with a pre-planned budget. The study found that 53.6 percent of the women preferred to budget their spending compared with 46.7 percent for men.
Most of the respondents spent between RM100 and RM300 each for their own attire, their children’’s attire, Raya food stuff, to service their vehicle and transport charges and the raya ‘’angpow’’. Most of them also spent on the festive necessities between 1 and 2 weeks before the 1st of Syawal with most of them doing their shopping at major shopping centres.
The former head of the Resource Management and & Consumer Studies of the Human Ecology Faculty, Universiti Putra Malaysia found it strange that the consumers had no budget or overspent when looking at the fact Hari Raya is celebrated every year.
All they need to do is plan early, save up for the occasion.
“For example, if the Hari Raya expenditure last year was RM4,000 so one have to save up a similar amount for the up coming Hari Raya and not use up the monthly salary,” he said adding that when they fail to save up they would end up flashing credit cards or borrowing from others.
“With the rising cost of living now, it is best to spend wisely on things that we really need and not give into our desires and buy things that we can well do without,” he added.
So is there a way to keep a tight hold on the purse strings during this Hari Raya to avoid over spending and the money saved used for some other purposes, like taking the family for a holiday? Maybe the tips below can help:
Set a budget for Hari Raya spending, with a specified amount say RM1,000-2,000.
In preparing the budget, get to know the needs of the whole family.
List down the necessities for the celebration and spend accordingly.
Start shopping early and avoid last minute shopping that may tempt one to buy what is not necessary due to the good discounts. In other words plan the purchases.
Buy cash to keep track of spending.
Avoid borrowing to fulfil temptations during Hari Raya.
Compare the prices of products and services. Ask the others and follow the social media on the information that you need before making the purchase. Be careful of cheap sale offers Look into worthwhile online offers too but have a budget for them as well. - Bernama