Spend Wisely, Celebrate Raya Happily

As Hari Raya approaches, the festive atmosphere is growing more vibrant, with families and friends coming together to plan a variety of celebrations. Yet, beneath the joy and cheer, some individuals are facing challenges, particularly when it comes to financial constraints. This contrast highlights the diverse experiences of those observing this meaningful holiday.

This year, many parents might be feeling the pinch, having just covered the costs of the new school term. Now, with the fasting month and Hari Raya celebrations on the horizon, it is a time when both mental energy and a healthy budget are essential to navigate the excitement and expenses of the season.

As the excitement of Hari Raya builds, it is time to get the kids to look their best in new outfits, and to prepare a feast that will delight both family and friends.

Astro Awani’s January 2025 report highlights Malaysia’s consumer spending staying strong in the first quarter, fueled by festive cheer and preparations for Hari Raya and Ramadan. While the excitement of new outfits and delicious feast drives demand, rising prices for essentials such as food and clothing add a pinch of practicality to the planning – a reminder to balance joy with smart budgeting.

Taking Alif, whose story was featured when ASB celebrated its 35th anniversary recently, as an example of an individual who is smart in financial planning, he always makes early preparations for the needs of himself and his family.

“Festival season is certainly joyful, but sometimes it can become a burden,” thought Alif. He noticed that prices for essentials like food and clothing have risen with the surge in demand and household spending during the festive season. Moreover, those tempting sale promotions flooding social media can make it tricky to stick to a budget.

Realising this, Alif and his wife, Laila, made a list of necessities for Hari Raya as early as the end of last year. They cleverly split their spending according to categories—namely, essentials, wants, and savings.

They adopted the 30-30-30-10 financial planning formula. This allocation includes:  ●  30% for essentials: This covers housing (monthly payments to the bank or rent), utility bills, food, and transportation.

●     30% for wants: Spending on entertainment, dining out, and buying cloths.

●     30% for savings and investments: This includes savings and retirement investments.

●     10% for debt payments: Payments for credit card debt, student loans, and other obligations.

This method emphasises a clear division for expenses and includes provisions for debt repayment.

Alif is not worried about consistent savings, thanks to ASNB’s Auto Labur service that he’s been using since its launch in 2019, which makes it easier for him to invest a fixed amount regularly every month and boosts his savings each year.

Additionally, Alif relies on the Robo Investment Advisor, or Ria for short — a service that automatically selects portfolios based on individual risk assessments. With its intuitive risk profiling and automated portfolio rebalancing, Ria makes investing accessible for everyone, regardless of their experience level or financial background.

As a result, his savings and investments are well taken care of, and Alif now only needs to focus on planning the family’s expenses, especially for Hari Raya preparations.

In addition, there is another popular method of financial planning the 50-30-20 rule, introduced by Elizabeth Warren, a former law professor at Harvard University. This method is widely practiced by individuals and recommended by financial experts.

● 50% of income: Allocated for basic needs such as housing, food, and utility bills.

● 30% for wants: Expenses for entertainment and other non-essential activities.

●  20% for savings or investments: This includes savings, retirement investments, and debt repayments.

Although the festive season typically leads to higher consumer spending, Alif chooses to purchase items offered by vendors at special discounted prices. This way, he is still able to buy quality products at reasonable prices.

Alif feels content knowing that when Hari Raya arrives soon, his family will be able to celebrate with joy and peace of mind, without financial stress, as the planning he has done ensures that his family’s needs are well taken care of.