Preparing for Hari Raya Aidiladha? Learn how to create a realistic budget to have a wonderful celebration without splurging your wallet!

It is that time of the year again. Well, to be exact, the second Eid celebration of the Islamic calendar—Hari Raya Haji, also known as Eid al-Adha. This significant festival celebrated on the 10th day of the Islamic month of Dhu al-Hijjah, commemorates the willingness of Prophet Ibrahim to sacrifice his son in obedience to God’s command. As one of the most important holidays in the Muslim world, Hari Raya Haji holds deep spiritual significance, emphasising themes of sacrifice, charity, and community spirit.

While the festival is a time of joy, reflection, and togetherness, it also involves numerous expenses that can strain finances if not carefully planned. From purchasing sacrificial animals to hosting feasts, new clothes, gifts, and travel, the costs can quickly add up. Therefore, effective financial planning for Hari Raya Haji is crucial to ensure that the celebrations are not only joyous but also financially sustainable.

Financial planning for Hari Raya Haji is critical to ensuring a happy and stress-free holiday. Proper budgeting helps handle festival-related costs such as food, clothing, presents, contributions, and travel.

#1. Estimating Total Income

Begin by calculating your total available income for the festive period. This should include your regular salary, any bonuses you might receive, and other sources of revenue. Here’s how to approach this:

  • Salary: Identify your net salary after taxes and deductions. If you are paid monthly, use your most recent pay stub to get an accurate figure.
  • Bonuses: Many companies distribute bonuses during the festive season. Include any performance bonuses, holiday bonuses, or annual bonuses in your calculations. Make sure to account for taxes or deductions that may apply.
  • Other Income Sources: Consider any additional income you may have. This could include:
    • Freelance Work: Income from side jobs or freelance projects.
    • Investments: Dividends, interest from savings accounts, or returns from investments.
    • Gifts: Monetary gifts from family or friends.
    • Rental Income: If you have properties that generate rental income, include these earnings.
    • Part-time Jobs: Income from any part-time employment.

By thoroughly estimating your total income, you can create a more accurate and realistic budget for the festive period. This ensures you are aware of your financial position and can plan your spending, accordingly, avoiding any unexpected shortfalls.

#2. Listing All Potential Expenses

Make a comprehensive list of all the expenses you anticipate for Hari Raya Haji. This will help you create a realistic budget and avoid overspending. Consider the following categories:

  • Food: Estimate the cost of all ingredients and groceries needed for preparing festive meals. This includes traditional dishes, snacks, and beverages. If you plan to eat out or cater some meals, include those costs as well.
  • Clothing: Budget for new clothes and accessories for all family members. This includes traditional attire such as baju kurung, baju Melayu, or other festive outfits. Don’t forget the costs of tailoring, alterations, and accessories like shoes, jewelry, and headscarves.
  • Gifts: Account for the cost of buying gifts for family and friends. This includes the money you plan to give as Raya money to children, elders, and other recipients.
  • Donations: Budget for additional charitable giving, such as donations to local mosques,  charities, or those in need.
  • Travel: If you plan to travel to visit relatives or perform the Hajj, include costs for airfare, bus or train tickets, fuel, and tolls. If staying overnight, consider the costs of hotels or other accommodations.
  • Celebrations: Budget for decorations to beautify your home, such as lights, banners, and other festive ornaments. Do include the costs of hosting or attending parties and other social gatherings. This might involve venue rentals, entertainment, and catering services. Consider any other potential costs, such as additional household supplies or last-minute purchases.

By listing all potential expenses in detail, you can ensure that your budget covers all aspects of the celebrations and helps you manage your finances effectively during Hari Raya Haji.

#3. Allocating Funds

Divide your total income among the listed expenses based on priority and necessity. Ensure that essential costs are covered first, such as food and donations, before allocating funds for non-essential items like decorations.

#4. Prioritise Debt Repayment

If you’ve accrued any debt before the festive period, prioritise its repayment. This includes any ‘buy now, pay later’ schemes, credit card bills, or personal loans. The sooner you address these, the less interest you’ll accumulate, saving you money in the long run​.

Focus on paying off high-interest debts first to minimise the financial burden.

#5. Review and Adjust Financial Goals

Festive spending often necessitates a review of your financial goals. Take the time to assess your current financial situation and adjust your short-term and long-term goals accordingly.

Whether it’s saving for a holiday, building an emergency fund, or planning for retirement, realigning your goals can provide a clear path forward and keep you motivated.

#6. Seek a Licensed Financial Planner Advice

If you’re struggling to manage your post-festive finances, consider seeking advice from a financial professional. They can provide tailored strategies to help you get back on track, offering insights into debt management, budgeting, and investment opportunities that align with your financial situation and objectives.

Conclusion

With festivities coming up, it’s essential to assess your actual expenses in comparison to your original budget. This will assist in identifying areas where you may have exceeded your budget and make necessary adjustments for future financial planning. Tracking all your expenses, including gifts, travel, food, and decorations, gives you a comprehensive view of your financial spending. By implementing these strategies, you can effectively navigate the post-festive financial landscape, ensuring you’re not only recovering from the expenses of this year’s celebration but also preparing adequately for future festivities.

 

Are you preparing to celebrate Hari Raya Aidiladha? Share with us in the comments below!

 

You May Also Like