Raya Money Management: How to turn your finances from ‘merah’ to ‘meriah’ 

Hari Raya is a time to celebrate with your loved ones, seek forgiveness, and repentance. It is also a time when many Malaysians find themselves spending more and why not? With pop-up shops around every corner and a variety of sales every day, the temptation to grab the best deal can be all too real! Amidst these exciting offers, think about whether you’ll still feel so ‘meriah’ when you check your bank account after this month. To avoid feeling financially tied up like a ketupat, give these tips a try!

Buy now, pay later, or forever? 

Buy now and pay later, or deferred payments, can seem like an easy way to buy a new Baju Raya instantly, but what happens when the open houses are over? Once the lemang sellers close shop and wait for the next Raya to roll around? It can be hard to resist but if you’re not careful, these seemingly small payments can add up. You might find yourself constantly utilising deferred payment options for all expenses and ultimately end up in a  cycle of debt. If you have some online shopping to do or planning your post-raya holiday,  remember that every penny counts. Opt for payment methods that can help you save money, like a Wise card, which has lower fees and better exchange rates for international transactions. Once the festive season ends, make clearing any outstanding debts your top priority. You may not feel the pinch now, but future you will surely be thankful!

Savings to save you  

If you’re still receiving duit raya, you may be tempted to splurge all the extra cash on a trip!  Let’s be honest, lounging by the pool, and swimming the stress may seem blissful, but you don’t want to come back and find yourself drowning in debt. The sudden influx of money can make you feel like you need to treat yourself, but it always pays to be patient because you can always go on holiday or buy something new later, after you’ve paid the bills. Also, you may consider saving the money for a rainy day or putting some cash towards your next trip. As the saying goes: ‘sikit-sikit, lama-lama jadi bukit’ – your next holiday or shopping trip may be much better than what you originally planned, with all that extra savings.

Cash it or bank it?

People traditionally received duit raya in cash but many have started sending and receiving e-duit raya with multiple digital methods. With family and friends living abroad, platforms like Wise make it possible for us to send and receive duit raya seamlessly across borders, and with affordable exchange rates. If your relatives insist on giving cold, hard, cash, consider these two options and see which one will help you save more money: 

• Bank it (Digitally): If you prefer e-payments, keep the cash in your digital account and access it online at any time, as many platforms have different savings features. For example, the Wise account has a ‘Jars’ feature that helps users save money in different currencies, which would be especially useful for globetrotters. For long-term benefits, consider a savings account with reasonable return rates over a certain period of time. 
• Cash it: If digital methods do not work for you, try cash stuffing. Set aside a budget for groceries, entertainment, and commitments, and keep cash in separate envelopes. You can spend the money kept in the envelopes for each category. This method helps to visualise how much you’ve spent, as you can count the amount of cash in hand daily. 

In the midst of Hari Raya joy, take some time to reflect on how you would manage your money for the rest of the year. Take these tips to heart, and maybe by the next Raya, you’ll be in a much better place financially. Selamat Hari Raya, maaf zahir dan batin!