Salina Abdullah
Universiti Teknologi MARA Cawangan Melaka  
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Every year, many Malaysians look forward to Raya and want everything to go perfectly well. It’s easy to get carried away, from overspending on food, new furniture, and even big-ticket items like a new car.

But things don’t always go as planned. During the open house, guests arrive late or not at all. Children run around, and somewhere in the chaos, a glass of sirap bandung ends up on that brand-new sofa. By the end of the day, the hosts are drained when they need to clean up spills, counting leftovers, and quietly wondering if all that effort and spending were really worth it.

It’s a familiar story. Trying to impress everyone can lead to unnecessary stress and lingering debt. In time, many realise that simpler celebrations often bring more peace, more meaning and fewer regrets.

That’s why financial planning matters, not just for Raya, but in everyday life. Without it, small decisions pile up into big problems. With Raya approaching, now is the time to get ahead of your spending so you can celebrate without worry.

Budget Wisely and Shop Smart

The first step in managing your finances for Hari Raya is setting a realistic and comprehensive budget. Retail sales are expected to be strong in the first half of the year due to the proximity of major celebrations like Lunar New Year and Hari Raya, but the second half of the year might see inflationary pressures. Rising living costs, petrol subsidy cuts, and increased utility tariffs could significantly impact your disposable income. Therefore, it’s critical to plan ahead. Start by allocating a specific amount for each category from clothing, food, gifts, decorations, and duit raya—and ensure that you stick to it. This will help you avoid financial stress and overspending during and after the celebrations.

Planning your shopping early can save you both time and money. Shopping ahead allows you to take advantage of early-bird discounts and promotions, helping you stretch your budget further. Shopping at the last minute can result in price hikes and limited stock, especially for high-demand items like new Raya outfits or festive food items. By shopping early, you not only avoid these price increases, but you can also take time to compare prices, look for deals, and make more informed purchasing decisions.

Many Malaysians are increasingly opting for online shopping—83% of consumers now prefer e-commerce platforms like Shopee, and over half of them use e-wallets for convenience and security. This shopping shift offers you the ability to browse multiple stores and access exclusive online discounts. Additionally, bulk-buying non-perishable items such as snacks, rice, and canned goods can significantly reduce costs while making future meals easier to prepare.

Raya attire does not need to be new every year. A well-maintained baju raya from previous celebrations can still look elegant and festive. If purchasing new clothing, it is better to choose classic designs that remain wearable over time, rather than styles driven by short-lived trends such as scallop cuts or batik-themed prints, which may not age well. Timeless pieces offer better value and versatility. Furthermore, dressing the entire family in outfits with the exact same design and colour is not necessary. Coordinating clothing in similar tones or complementary shades offers a more practical and flexible option. It still creates a unified and visually pleasing appearance in family photographs, without the added cost or pressure of finding identical sets for everyone.

Manage Food and Duit Raya Costs

Food costs during Hari Raya can often be one of the highest expenses. Large gatherings during open houses and the tradition of preparing lavish meals can quickly spiral into overspending. To keep food costs manageable, it is essential to plan meals carefully and avoid buying too much. Estimate how many people you ll be hosting and tailor your menu to avoid over-catering. Sticking to a set menu can help you buy only what you need and reduce waste. Buying ingredients in bulk for dishes that can be prepared in advance will not only save money but also reduce the stress of last-minute shopping.

Reusing leftovers creatively is another way to save money without wasting food, turning extras into new dishes like fried rice or soups. Not only that, leftover dishes such as rendang can also be frozen and reheated later, helping to reduce waste and ease meal preparation throughout the Raya month.

In addition, rather than serving a wide array of biscuits and sweets, consider making a couple of homemade options that are affordable yet festive. This approach allows you to reduce your overall food budget while still enjoying a delicious and memorable Raya feast.

Duit raya is an important tradition, but it can also be a financial burden if not managed properly. Many Malaysians typically give RM50 to RM100 per recipient, and when you have a large extended family, this can add up quickly. While it is important to honour the tradition, it is equally important to manage how much you give to avoid straining your finances. Setting a fixed amount for duit raya or limiting it to close family members can help keep your spending under control. If you are worried about the process becoming overwhelming, consider giving duit raya digitally. Digital transfers are more convenient, easier to track, and can help you keep your finances organised.

Make Extra Income Work for You

For many, Hari Raya provides an opportunity to receive extra income, such as through bonuses or EPF withdrawals. While this can provide some relief for holiday expenses, it is essential to use this additional income wisely. Malaysia's household debt has reached RM1.57 trillion, or 83.3% of GDP, meaning many families are already under financial pressure. With rising costs, it is essential to balance your spending with debt repayment. If you receive extra income, consider using it to pay down high-interest debt, such as credit card balances, or increase your emergency savings. This approach will provide long-term financial security and help alleviate the pressure of paying off high-interest loans.

While focusing on holiday expenses, the festive season is also a good time to reflect on your long-term financial goals. It is easy to get caught up in immediate spending, but reviewing your broader financial plans is equally important. Take some time to assess your savings, investments, and other financial goals to ensure you are on track. For example, if you have received a salary increase or benefited from the minimum wage increase, consider allocating these additional funds toward long-term objectives like retirement savings, children’s education funds, or even a home down payment. Reviewing your finances during the holidays allows you to adjust and ensure that your current spending aligns with your long-term goals.

If your child received a generous amount of duit raya, consider saving or investing it rather than spending it on short-term wants. Separating it from regular pocket money helps with tracking. You can place it in savings options like Tabung Haji (which offered a 3.1% dividend last year), an ASB account for children aged six months and above, or SSPN-i, which offers tax relief and education-linked benefits. These accounts are easy to set up with basic documents and offer a more meaningful way to secure your child’s future.

Finally, staying informed about the economic conditions around you is key to making well-informed financial decisions. While strong consumer spending is anticipated in the first half of the year due to the festive season, the second half of the year could bring challenges, such as higher petrol prices, subsidy cuts, and rising utility bills. Keeping track of these changes will allow you to adjust your budget accordingly, ensuring you to remain financially stable. If you are already dealing with high debt, it is especially important to stay on top of these economic changes, as they could exacerbate financial pressure. By monitoring inflation trends and government policies, you can adjust your budget to account for these shifts and prevent overspending.

By taking a proactive approach to financial planning, you can enjoy Hari Raya Aidilfitri without compromising your financial health. Set a realistic budget, shop smartly, control food costs, manage duit raya, and use any extra income wisely. By reviewing both your short-term holiday expenses and long-term financial goals, you can ensure that you make informed decisions that will benefit you long after the festivities are over. With thoughtful planning and careful decision-making, you can celebrate with peace of mind, knowing that youhave created a financial foundation that supports both your festive joy and your long-term financial well-being.