Ramadan is the 9th month of the Islamic Calendar observed by Muslims worldwide as a month of fasting, reflection, prayer, and community. It is a month of self-discpline & restraint that presents an amazing opportunity to create harmony between yourself and your financial habits.
While fasting plays a huge role in the holy month, Ramadan is more than just Suhoor, Iftar, and Tarawih. Rather, it's an important time for action and change for 1.8 billion people around the world.
Regardless of religion or faith, there are certainly valuable lessons that we can all learn from Ramadan to improve our financial lives.
Here are some of the vital money lessons:
Just as Muslims globally stop and focus on how they can be a better version of themselves, you should pause to think about your financial situation too. You must regularly reflect on where you are financially and what you've been doing to achieve your goals.
Take the time during Ramadan to also renew or set new financial goals. If you’re like the majority of people who've set New Year's resolutions but didn't see them through, it's also time to reflect on the challenges and how you could restore your lost energy to achieve some of the goals you set/
Conservation goes hand in hand with Ramadan. Before purchasing an item, ask yourself, do you really need it or is it just a result of an overwhelming temptation or a status quo? This question will determine whether you need to go to an iftar buffet, do online shopping, or buy lavish gifts. The pandemic has taught us all that financial health is equally imperative as physical health to survive in a crisis.
Stop making excuses like "If I had more money, I would manage it better" or "I don't have enough money to save and invest". These excuses are hurting your chances of achieving financial freedom.
You have probably heard the familiar adage, “It is better to give than to receive.” The act of giving elicits positive feelings and emotions for both the giver and the receiver, making it one of the most important exchanges you can have with someone. Instead of over spending on yourself then regretting later - give, share and be moderate about it, you’ll feel better about yourself later.
Best part is technology has made easier for us to do good. Take advantage of it.
Research says it takes about 2 months before a behavior becomes a habit. Ramadan assumes it takes approximately 4 weeks to build a new habit. Muslims use Ramadan as an opportunity to reflect on the positive habits they can implement in their lives and we can borrow from that in regards to your finances. Build a great habit, whether it’s saving, whether it’s great financial decisions or even restrain from overspending.
We all want to be able to save and grow our wealth for the future. It’s important to reflect on your financial situation and evaluate what you’re spending on. Whether you’re Muslim or not, take advantage of this period to get your finances in check.
Lastly, don't forget Ramadan is about humbleness and compassion, give back when you can.
We’re rooting for you!