With the raya holidays coming to an end, we are sure you had a great time travelling and spending quality time with your family and loved ones.
However, did you happen to overspend on your holiday budget?
If you did, here are some suggestions on how you can start saving for next year’s raya holidays so you will have more than enough to spend when raya comes along again in a year’s time.
Set A Target That Will Allow You To Fund Your Plans
Before we begin, you will first have to decide on how much you will need for your raya expenses the following year, taking into account travelling expenses, holidaying expenses, food, decorations, gifts, accommodation and the cost of buying new clothes.
Once you’ve figured out how much that would cost, we can now figure out how we can save up that amount in a year’s time so you can have more than enough to spend when raya comes along.
#1 Set Monthly Targets
Divide the amount you will need to fund your raya plans for the next year to get the monthly target that you’ll need to save in order save up enough when the time comes.
If you are reading this a couple of months after the raya season, then you will have even less time to save up. You will then have to divide the amount by the number of months left till the next raya season comes along.
If you fail to plan, you plan to fail.
Hence, it is important for you to set monthly targets so you can slowly pace yourself and work towards achieving your final goal.
#2 Save On Unnecessary Daily Or Monthly Expenses
With the rising cost of living in Malaysia, we know it will be tough for you to set aside a certain amount every month while still having to pay your bills and monthly commitments.
However, you will be surprised at how much you can save by cutting down on unnecessary daily or month expenses such as ordering that extra side-dish for lunch, the magazine subscription that you now rarely even read or just by parking a little further down the road to save on parking.
#3 Budget For Big Events Every Quarter
Many savings plans go down the drain when a major event comes along that requires you to spend whatever you have saved.
It could be another major holiday, peak wedding season, a friend’s bachelor or bachelorette party, or your wedding anniversary. Be sure to factor in expenses for such events that you know are coming up in your calendar and set aside enough for them so you would not have to draw on your savings to fund them instead.
Read Also: The Best Way To Spend Your Bonus
#4 Start A Forced Savings Plan
Once you have figured out how much you will need to save per month, a good way to keep you disciplined in saving is to start a forced savings plan.
That way, you will have the discipline to save every month while having the flexibility to withdraw the amount of money you need when the time comes. In addition to that, whatever amount that you have left in your account each year can continue to generate interest for you for the following year.
#5 Set Aside Money In Fixed Deposits
Although the interest rates for fixed deposits is not very high compared to other investment vehicles, they would serve the purpose of preventing you from withdrawing the money before raya comes pretty well. Hence, due to lack of a better alternative, you can choose to set aside your monthly savings in fixed deposits that expire just as the raya season comes along.
With these suggestions, we hope you will be able to have more than enough to spend when the next raya season comes along next year!
Read Also: 7 Best Ways To Spend Your Duit Raya
DollarsandSense is a website that aims to help people make better financial decisions, one interesting bite-sized article at a time. Like us on Facebook to stay in touch with our latest article.
DollarsAndSense Malaysia is a website that aims to help people make better financial decisions, one interesting, bite-sized article at a time. Like us on Facebook to stay in touch with our latest articles.