Keeping the grocery bill under control during the holy month of Ramadan may be difficult due to rising food prices.
Ramadan, which began on Thursday, is the Muslim fasting month during which they refrain from eating, drinking, or smoking from dawn to sunset.
Ramadan can be a very overwhelming time, from preparing healthy, filling meals to hosting iftar parties, according to personal finance expert Rubina Ahmed-Haq, who also hosts For What It’s Worth on the Corus Entertainment radio network.
Inflation continues to wreak havoc on household budgets. From groceries to petrol, record-breaking inflation means your money’s purchasing power is eroding month after month.
1. Take stock of your entire financial picture:
Has your family’s income changed? Have you adjusted your budget to account for rising grocery, transportation, and other costs? Examine your current budget to determine where you stand and where your money is going.
If you don’t have a budget, making a simple spending plan or roadmap of monthly expenses can help. To begin, use resources such as a budgeting worksheet to track your monthly income versus current expenses.
2. Continue to save for an emergency fund:
In case of an unexpected expense, such as a medical bill or a costly home repair. An emergency fund reduces the likelihood of incurring debt to cover an unexpected expense.
It may be tempting to pause monthly savings as rising prices consume a larger portion of your monthly budget, but resist the temptation. Set up automatic savings with each paycheck. Even a small sum will accumulate over time.
3. In an era of rising prices, priorities monthly spending:
Certain monthly expenses, such as subscription or streaming services, should be reconsidered. If you’re looking to cut costs in the face of rising prices, cancelling unused subscriptions is a good place to start.
Determine your new baseline as essentials become more expensive. Reduce your use of credit cards and your discretionary spending (dining out, entertainment).
4. Keep an eye on debt, especially as interest rates rise:
Paying off high-interest credit card debt saves you money in interest, boosts your credit score, and frees up budget space. Select a debt-reduction strategy that is appropriate for your circumstances.
Consider Debt Management Plan, which can assist you in repaying unsecured debt in 3 to 5 years. It can work with a variety of creditors to bring your accounts up to date, reduce interest rates, and eliminate fees.
5. Shop wisely:
Look for the best sales, coupons, and specials, especially on low-inventory items. Check discounts & retailed stores for bargains on household items and stock up when possible. Bulk retailers and wholesale clubs may be good places to stock up on items.
Plan your higher-priced purchases strategically. As much as possible, substitute generic for brand-name items.
6. Monitor your credit history:
In these times of rising prices, it is prudent to monitor your credit history, which is used to calculate your credit scores.
Your credit score is a three-digit number that determines whether lenders approve you for new credit and what interest rates they offer.
To read our latest blog on “How should you spend last 10 days of Ramadan to please Allah,” click here