Al-Dai-al- Ajal Syedna Mohammed Burhanuddin RA states;
"Properly balance your household expenditure. Do not spend more than what you earn. One should create a budget according to his earnings. Allah gives rizq, but it is imperative to understand its importance and not squander away wealth behind unnecessary items and neglect that which is necessary."
Budgeting is one of the most important phenomenon that leads our lifestyle. Right from properly maintaining your household expenditure to not spending more than your earnings, one should create a budget according to their earnings.
How to create a budget in 4 steps
Make your income projections
The first step in any budgeting exercise is to calculate your projected monthly and yearly income. You can find out your yearly income by multiplying your average monthly income into twelve.Although your income might vary month to month,try your best to average it out. You can use the average to the last 6-12 months as a point of reference.
Set your expenses under 6 umoors
The next and the most important step in your budgeting exercise is to determine your projected monthly and yearly expenses under 'the 6 Umoor.'
This method allows you to organize your expenses in a way that comprehensively encompasses the various activities of a mumin's life.
The 6 Umoor of budgeting are as follows:
1) Deeni - i.e Khumus, Wajebaat, FMB, Hajj, Ziyarat.
2) Housing - i.e Utilities, House Maintenance, Kitchen Utensils
3) Food - i.e Groceries, Dining
4) Livelihood - i.e Personal and Family Care, Transportation
5) Education - i.e School/College Fees
6) Health - i.e Medical/Dental, Eye Care, Leisure.
Balance your budget
To evaluate the position of the household, you have to balance your budget and identify the difference amount between your income and your expenses. For that, subtract your yearly expenses from your yearly income and observe the difference.
Track down your spending
To implement your household budget, you have to diligently keep track of your monthly income and expenses.
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