Being thrifty this Hari Raya

KUALA LUMPUR: Festive seasons are usually the time when household and personal expenditures spike.

Shopping for Hari Raya has never seemed more exciting now that the six per cent Goods and Services Tax (GST) has been zerorated and consumers have higher purchasing power.

Shoppers, however, are advised to keep their spending in check as unbridled extravagance will only lead to financial constraints later.

The Credit Counselling and Debt Management Agency (AKPK)’s Kuala Terengganu branch manager Junainah Ahmad Esa said consumers should give emphasis to exercising prudence when they go shopping.

“There’s a tendency for people to be attracted to sales promotions and offers and to go overboard with their spending. ( To pay for their purchases) they use their credit cards and take personal loans, which are all non- productive,” she told Bernama.

Some people also take a salary advance for their Hari Raya preparations, which would be deducted from their subsequent salaries until they have settled the advance payment in full.

“Their household budgets for the subsequent months will become topsy- turvy due to the salary deductions,” she added.

Pointing to the importance of working out a realistic budget for festive spending, Junainah said the quantum should be determined earlier so as not to disrupt the overall expenditure for the month in which the festival falls.

For people who face budgetary constraints, she said they should give priority to spending on necessities and not spend as they wished.

“Yes, there’s bound to be extra expenditure during the festive season but one shouldn’t ignore the importance of setting aside some money as savings.

“By right, 10 per cent of one’s income should be saved every month for a rainy day,” she added.

Consumers can stop themselves from falling into the traps laid out by all those sales promotions out there if they draw up a checklist of all the items that they really need.

Introspective questions like ‘ Do I really need it’, ‘ Can I afford it’ or ‘Are there cheaper alternatives’ can help them to control their ‘appetite’ and be more rational when spending their hard- earned money.

“Be a smart shopper and get the latest updates on discounts and promotions. Also, compare prices at various shopping complexes and don’t buy stuff that you don’t need even though the price is low. As for things that you need, buy them online if you can get them cheaper there than at conventional stores,” said Junainah.

Homemaker Nur Hasmila Hassan, 48, meanwhile, said she was always thrifty, even when preparing for Hari Raya, as her husband, who works in the private sector, was the family’s sole breadwinner.

The mother- of-four said priority was always given to settling the household bills and expenses like road tax for the car before setting aside money for celebrations like Hari Raya.

“This is to avoid financial constraints in case we overspend during Raya,” she said, adding that she and her husband also have to look into the needs of their children who are still studying.

“Although the GST for many goods is now zero-rated, I’m not thinking of going on a shopping spree because I’m only thinking about how I can make some savings.

“Our children are still studying, so we have to manage our family finances wisely. We shouldn’t use Hari Raya as an excuse to buy all kinds of new things and spend beyond our means. Something new does not necessarily have to be expensive, it all goes down to the basics of how we spend our money.” — Bernama