Putting your finances in order during Ramadan

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Putting your finances in order during Ramadan

By Vikas Panchal

During the holy month of Ramadan, believers embark on a personal spiritual journey. Many also take this opportunity to assess every facet of their lives for self-renewal and practice self-discipline, generosity, and kindness.

Observing good financial practices, including saving and wise spending, is part of the self-improvement goals heightened during the holy month. As such, it is important that everyone establish a sound financial plan for the future.

It is easy to indulge and overspend during the holy month as a myriad of discounts and special offerings pop up in malls, restaurants, and retail stores. Hosting lavish suhoor and iftar meals for family and friends can also force us to go beyond the set budget. But this shouldn’t be the case.

To avoid any trouble that might arise and go against your noble intentions this Ramadan, it is imperative that you put your financial life in order. The holy month is the ideal period to reflect on why we should spend within reasonable limits and only for worthwhile purposes.

The first thing to do is to set up a budget plan and make sure to spend within the boundaries of the allotted amount only. Itemize your expenses for family gifts, charitable acts, and iftar dinner, among others, in your budget list. Taking advantage of sales when shopping for gifts and buying groceries can help you make substantial savings. As such, patronize retails stores and supermarkets with competitively priced goods and items. If you aim to stay frugal during the month, do so with the intention of shunning away things that force you to spend more than what you can afford. This way, you are also saving yourself from the feeling of regret later on.

Having a budget ensures that you are not splurging and breaking the bank while fulfilling your obligations. It is ideal to include your family when preparing the budget to guarantee that you do not miss anything and avoid major unplanned and unnecessary expenses along the way.

Similarly, remember that Ramadan is a time to exemplify a simple, modest life. If your budget does not permit you to indulge in extravagant iftar meals or limits you from purchasing luxury gifts for your loved ones, then a make a decision only to pay or buy what you can afford. Sticking to your budget is a form of self-discipline and is considered a wise move to avoid overindulging.

Moreover, as you look into your finances with your family, it is the best time to assess your overall expenses and determine if there are some things in your list that are unnecessary. Cut down on things that you deem you can do without and then realign your expenditures based on your priorities. Reviewing your finances is an enlightening process that enables you to check your lifestyle and ease the pressure on your budget.

In fact, wealth management for businesses needs to be taken care, as well. For businesses, good financial planning will aid in increasing competitiveness and productivity, better efficiency and hence the overall success of the business. Thus, gifting technologically advanced business solutions to the business during Ramadan will go a long way in increasing the work efficiency in the midst of an evolving regional business landscape. These also lead to new ways of achieving a more enhanced operational efficiency.

Learning about proper investing and wealth management is another solid foundation for building a robust financial portfolio. Investing in ethical financial products with admirable economic, societal, and environmental impact is an inspiring way to establish your financial security. You can work with organisations with effective investment management strategies to better manage your wealth.

Adopting positive changes is at the heart of Ramadan. It requires us to assess how we are living our life to check if this is in sync with our beliefs. The holy month is the period to take stock of our purpose, goals, and intentions, with an end goal of making crucial life adjustments. The financial aspect is just one facet of our existence, but it is critical just the same. Putting our finances in order helps us prevent troubles and heartaches in the future and what better time to do this than now.

— The writer is Business Head at Tally Solutions in the Middle East, a leading international accounting and compliance software provider. Views expressed are his own and do not reflect our news website policy.