Al-Marsad Newspaper: The writer Badr bin Saud proposed a solution to those who got himself into the dilemma of lack of financial resources in Ramadan, which is to rationalize expenditures to a minimum to overcome the dilemma of Shawwal.
saving payroll
And he said during an article published in the newspaper “Al-Riyadh” entitled “Do not be a victim of disappointment in Shawwal,” economists assume that people save six full months’ salaries, by regular partial deduction, and then put them in an emergency fund or a separate account to be used when the salary is interrupted, or when Leaving the job by choice or compulsion, and when moving between jobs, in a way that makes life go on at the same pace for the longest possible period, but this does not happen, and the witness is that before the beginning of the holy month, talk began about the need for Saudis to save from the salaries of February and March to cover the expenses of Ramadan and Eid together, Because the salary of March was paid in the first week of Ramadan, and a week of Shawwal will be taken before entering the salaries of April. And every 30 years, the gap reaches a full year.
incentivize savings
He continued: The vision of the Kingdom working to address this problem, which contributed to its perpetuation to a high degree, is the change in the work ethic of the Saudis, as a result of the oil boom and the replacement of national workers by foreign workers for 60 years, and because of it, the culture of abundance, consumption, and idleness dominated the local society, so that it became part of its composition. Behavioral, to the extent that consumer debt in the Gulf countries, including the Kingdom, exceeded $480 billion in 2019, and there is currently a savings program within the social protection programs linked to the vision, which focuses on developing the financial sector and stimulating savings, and aims to raise the level of savings for Saudi families From 2.8% to 10% in 2030.
soon generations
And he added: The issue definitely needs time and accumulated experience that can be developed, and one of the serious and good examples is what the Social Development Fund is doing, under the supervision of the Saudi Central Bank, by developing an income management tool for adults called (Zud), and a second for those between the ages of 6 and 6 years. 18 years they call it (Sud Al-Ajyal), and the two tools work to set a budget for savings and follow-up on expenses, and to promote sound financial and savings behaviors among children and adolescents, and they have enabled 170 thousand customers to save amounts exceeding 91 million and 400 thousand dollars, in less than 4 years, according to Statistics 2023.
spending The conscious
And he continued: American writer Ramit Sethi presented in 2009 an alternative concept to the idea of the personal budget, and called it (the conscious spending plan), and divided the salary into four parts, the first concerned with fixed expenses and its share was 50% with an addition of 10% to cover unscheduled or emergency needs, and the second It is saved at a rate of 10% and directed to future expenses and to face unaccounted financial fluctuations, the third is invested at a rate of 15% to ensure a secure additional income periodically, and the fourth, at a rate of 15%, is spent on what the family desires, even if it is luxuries, such as weekly entertainment, and the purchase of clothing or brands Certain, and the purchase policy in this part, is supposed to be governed by motivation and actual desire, and in a way that moves away from randomness, and is concerned with the value of something, not its price, and the previous point of view is acceptable to me.
savings when The Saudis
He added: Savings among the Saudis, according to 2021 statistics, reached 4%, compared to 40% in China, and the Japanese are ranked among the best saving peoples, at 35% of the monthly salary, within what is known as the Japanese art of saving or (kakebo), and it comes in third place. America after Corona with a rate of 27%, and then India with a rate of 23%, noting that people in China and India number billion and their salaries are modest, and Americans before the pandemic were saving less than 10%, and did not heed the advice of specialists, but they learned from mass layoffs, inflation and high prices. As well as from the Ukrainian crisis and its economic cost, and for information, those who choose to increase salaries in the Kingdom are biased towards emotional rather than rational solutions, because the prices of commodities will rise with it, and return them to the same purchasing power.
strategy savings Saudi Arabia
He pointed out that the new Saudi savings strategy will distance citizens from dealing with the logic of reactions, and the sudden remembrance of their necessary needs days ahead of time, in a way that neutralizes as much as possible the growing demand for bank loans, and personal advances from friends and relatives, and the possibilities of exposure to abandonment and indifference to their financial crises, despite Its great impact on them, especially since middle-income Saudis have complex circumstances, and their financial obligations deduct 60% of their salaries every month, leaving only 40% for basic expenses such as food, water and electricity.
Rationalization expenses
He concluded by saying: Perhaps the possible solution for those who put themselves in the dilemma of lack of financial resources in this Ramadan is to rationalize expenditures to the minimum to overcome the dilemma of Shawwal, unless he recklessly spends it in full, in addition to arranging his future affairs in a better way, and thinking of a smart and guaranteed method, such as following the Indian method. With regard to saving, buying a piece of gold every month for a reasonable amount, and leaving it as a long-term investment, or small investments in traditional assets, such as real estate, stocks and bonds, it is necessary to consult the knowledgeable.
