All of us spend and it is important for us to take care of our needs. Beyond that we do enjoy spending it all! If we turn out being lucky, we are even able to save some money. However, quite often, we end up spending all that we have without for once thinking about the consequences. Sadly, when we have nothing left with us, we start to fret. No doubt money is a necessity and a very important one. Consequently, apart from paying off the expenses we must make sure that we even save some money and keep a bit so that we can indulge in a little extra that we have in hand.
As a Muslim it is vital for one to follow the halal finance system and use and save money accordingly. Make sure that you think before you spend it so that you can save it and send it later on, when it is but necessary for you to spend. Let us go through a few things, which will help us to utilize our money in a much more productive and wise way.
• Islamic finance
When we talk about halal finance in Australia it means the risk should be shared between the individual as well as the financial institutions, which use it. The Islamic firms do also follow a few key principles and that is they prohibit taking of interest or ‘Riba’. All kinds of gambling should be avoided and keeping away from all sorts of transactions which are uncertain.
• You must ensure that you identify your expenses
Make sure that all of your monthly expenses have been jotted down. Make sure everything has been noted down, from house rent to food expenses, credit card payments to car installments, transport cost, electricity bills, all are met. If possible every month, do set aside a certain amount for charity.
• Try to save a certain percentage
Once when all your expenses have been outlined, you will have an idea about how much can you save every month and then annually how much it would sum up to. Make sure that every month you start saving that much amount and you can be assured that in case of an emergency or any personal expense, you will have money kept aside. For starters, setting aside about 10-20% of each month’s salary would be a good beginning.
• Do keep a track of every expenses you make
On a daily bases, do keep note of every expenses that you make.
• Need for analysing
You need to ensure that you are not losing of your goals. The day you receive your pay, make sure that you analyse your month’s expenses. First, make sure that you are saving the required amount that you intent to save. If not, you have to understand how and on which area you are spending more. And then you can start to cut back those expenses immediately.