Aidilfitri 2010 is just around the corner and I believe people are going out for shopping in malls and bazaars along the street. As Aidilfitri is the most popular festival for Muslims especially in Malaysia, it is the time for people to go for shopping to get new clothes and accessories as a part of celebration.

And as usual the sellers will try to attract buyers to get the commodities offered through special offers, discounts, jumbo sales and etc. Believe it or not, this is the time where some buyers will forget to control their budget.

When we are talking about budget, you must remember that it is a part of your money that you have to allocate and put limitation on it. Means that you have to control its flow for the present and future use. However in fact special offers and discounts might wipe them all way from your mind.

When shopping for Aidilfitri, avoid using your credit cards because you might not realize how much you are using and you are increasing your debts. Try to use other alternatives such as paying by cash or debit cards where it is more secure and can give you limitation on your expenses.

Search for the best deal that you can get. Price might be different from one place to another place for same product so keep this in mind. Do survey for the best offer so you can get lower prices for good quality products.

Celebrating big festival like Aidilfitri is not just about shopping. Consider about the budget that you have to allocate for your journey to your village (unless your hometown is in the city itself) and the ‘duit raya’ for your younger relatives. Giving money to younger relatives might not the actual essence in the celebration but it had become a culture so don’t forget to consider about it.

Aidilfitri is a meaningful celebration so don’t make it a regretful moment for you if you are fail to control your expenses and budget. You might have to ‘fasting’ again after celebrating Aidilfitri becuse you used too much of your budget for the celebration. So always check your budget, don’t waste and make Aidilfitri a blessing moment for you and your family.

For all Muslims all around the world, Happy Aidilfitri 1431H!

We human have choices in our daily life. And these choices are affecting our current and future lives.

Now try to relate these choices to our daily financial situation. When you are going to the supermarket or walking in front of the shops, you have to choose what you need to buy and how much should you spend. You can go for your desire but keep in mind, you have to save for your future.

Making a choice between desire and future is not easy as you say it. You need determination to make your choice. And a simple choice might affect thousand dollars in the future. The best thing is to do a systematic planning for yourself so you know what to do for your financial situation.

Set your savings goals so you know how much you should spend in your daily budget. Calculate the cost that you have to face in the coming days, months and years so you can figure out your savings goals. Set savings goals for both short-term and long-term. Put limitation on your budget for every day, week, month and year so you will not spend more that you should.

Avoid using credit cards because they have the possibility to give you problems in the future unless you really need them for your deals. Using credit cards might result in overspending your budget. Go for debit card as the alternative choice. Avoiding credit cards gives you the chance to avoid debts in the future. Paying yourself first in every kind of situation is a strategy that you shouldn’t ignore.

Plan for your future expenses and keep records of your budget. It is a wise act to plan before the time comes for example your future marriage, wife, children, car and etc. By doing this way you know how much you should save starting from now and your budget limit so you can adjust your lifestyle according to it.

You might enjoy entertaining your desire now but do remember that it is temporary. Saving for the future is an important thing to be consider so put aside your desire. Take only what you need and save for your future.

It’s been years since the market crash happened in Jan 2008. After it ended the positive news kept airing and there is a sign of hope. The updates of increasing stocks rate being told again and again. It’s not a secret that most consumers are feeling relieve with the latest updates and some people back to their old habit of spending money without planning.

And who knows – in a mean of time, suddenly the market has crashed again and we have to face the economic downturn again. Most of our savings could be pulled down and we have to cut the budget. For people who has prepared with the emergency fund, they can maintain their daily lifestyle as they got backup but it will be a terrible nightmare for those who never prepare for the downturn. Some of them might have to do extra jobs for money as they never prepare however they have to feel grateful if they get the job – it’s better than nothing!

The slowing economy which began with the collapse of the market price and deals, result in things get worse before we are able to think how to solve them. If the gross domestic product decreases for two or more consecutive quarters, we will have to face the recession, the budget have to be cut and we have to forget about living in a prosperous life for a while – or even at all. These budget-cutting absolutely is never interesting and it could change your life into the terrible one if you can’t handle it rationally.

I meet some people who hate to talk or think about the bad things such as economic downturn, poverty and recession as they say it could be a way to become pessimistic. However I don’t agree with this opinion as always prepare for the future is a wise act to do and when the time comes, that is not the time to feel regret. So thinking of the future is an essential step in maintaining your financial management in all time.

So what should we do now? The best thing is to make saving money as a habit. Try to save enough money to cover about 3-6 months of your expenses. Losing your job is possible in this era so get prepare for that. Sit, think and consider all of the things that could change in your life when something terrible such as downturn and recession happens. Predict the results on your finance and plan what you want to do, now and when the time comes. The next thing is to implement your plan according to what you had decided.

Cut your spending now and start saving some money – you could avoid feeling regret in the future!

You might been told to save certain amount of money or exclusive fund for unexpected moments especially when you are reading finance articles or listening to lectures or advices on finance management. It’s called emergency fund.

An emergency fund is the amount of money which had been prepared for unexpected moments where at that time you need money. Some unexpected moments such as losing your job, medical emergencies, vehicle repairs or death will make you stuck in difficult situation – and that’s when you need the money. And you are a fortunate person if you are ready by preparing the emergency fund earlier. Emergency fund is a life saver and you will understand much better when you face the situation yourself.

Having both regular savings account as well as emergency fund is a nice step where you can separate these accounts for different functions.

Saving an emergency fund will help a lot to avoid any debts and this is a recommended step after bankruptcy. However an emergency fund is not rigid as you can plan your emergency fund into different parts and periods. You can set the minimum and maximum of the fund and set the length of the fund usage. Emergency fund should be completely being separated fromyour regular savings account and these fund should not be accessed unless absolutely necessary.

Some people might get complicated feeling when talking about emergency fund however getting prepare is a lot better than feeling regret in the future. The first step is to open a savings account that you will be the place for your emergency fund. Each bank offers different interest rates and provides different benefits and features so it is recommended to get enough information and comparison before opening an account.

Having an emergency fund will help you in becoming financially secure and will avoid you from facing the debts due to unexpected moments. An emergency fund is indeed the recommended first step for staying out of debt.

Debts, debts, debts. Facing with the debts problem could blow your head so it’s time to control it. Let’s see some tips on how to control your debts.

It might sound hard when we are trying to control something especially when we’re talking about debts. But do believe that there’s a way out for every problem so I recommend you consider about controlling your debts.

1. Setting your goal
In controlling your debts, the first step is to set your goals. What do you want to achieve? How much time do you need in controlling your debts? Set your goals based on your own estimation however don’t forget to put yourself inside the situation so you can set your goal based on your capability.

2. Avoid using credit card
Credit cards indeed help a lot in buying things today but don’t forget many people facing debt problems caused by the credit cards. There is no harm of using credit cards, but the best way is to avoid using them. I still remember what my friend said – “The best way to avoid danger is to avoid the trap”. You might face the situation where you have to use your credit card and there’s no other choice – so use them. My point here is avoid using credit cards as much as you could so you can avoid facing the debts in the same time.

3. Pay in cash & full amount
This could be the continuation of avoiding credit card step but paying in cash & full amount need a strong determination. Pay your bill or goods in cash is a good effort to control your current debts. Make it as a habit and it’ll be easier from time to time.

4. Use savings
Savings is very helpful especially when you’re facing financial difficulty. Savings need your responsibility and might give you hard time but it’s very helpful in case you need money for emergency cases. Savings also can help you to qualify for loans or buying equities besides controlling your debts.

5. Financial settlement
Financial settlement is a process that will help you manage your debt to settle. With a good payment plan you have the chance to eliminate your debts in about 2-3 years.