Rek Your Cheque: Don’t break the bank for Labarang

The malls, pop-up markets, supermarkets and Gatesville were buzzing over the last few weekends of Ramadaan.

Even with the financial hardships brought about by Covid-19, for many things seem to be on course as per usual for Labarang in Cape Town.

As a Muslim in the personal finance (and specifically the debt) space, I am always asked what I think about people spending excessively on Labarang clothes and food.

My response remains the same, whether this question is asked about Labarang, Christmas, birthdays, matric balls or any other celebration.

While I am a staunch traditionalist, I often remind myself that Islam does not burden us by instructing us to wear new clothes for Labarang.

Rather it asks that we wear our best – whatever that may be.

As a shopping-driven, brand-influenced society we have taken it upon ourselves to interpret “best” as “new” and that can lead to problems.

Now, if Islam doesn’t instruct us to buy new clothes, bedding, curtains and food for the day, then it certainly does not instruct us to make debt for it!

Yet, sadly, this happens.

People are maxing out credit cards and store cards, using money which could be allocated to necessities, just to impress the Joneses.

Don’t get me wrong, I am not advocating that we play down the significance of Labarang.

I am, however, suggesting that we celebrate Labarang according to our household affordability – and any family and friends who have a problem with that, were never real family and friends to begin with.

Last year, we held Labarang and Ramadaan in a hard lockdown.

The income of many people was affected in some or other way.

We couldn’t receive visitors and we couldn’t go visit others.

People did not dress up to the extent that they had done in the years before, and our “slamat rounds” to family and friends didn’t take place.

Taking all of that into account, we have to ask the question, did that lessen the religious significance of Labarang, or our fast and sacrifice in the month of Ramadaan?

The answer is, undoubtedly, no.

Many households are still feeling the effects from loss of, or reduction in, income during the harsh lockdowns of last year.

Covid-19 and its consequences caught us all unaware.

It exposed our lack of financial planning, our inadequate levels of saving and our inability to deal with our debt when crises hit.

If anything, this period highlighted our low levels of financial understanding, and lack of financial freedom.

We remain slaves to money when we don’t know what our financial rights, options and responsibilities are.

Ramadaan and both Labarangs (Eid ul-Fitr and Eid al-Adha) are always going to come around.

It could be a good idea to structure our finances to better prepare for it rather than to incur debt to fund it.

Besides the obvious practice of saving a certain amount for 11 months of the year so that you have more cash at your disposal for these special times, it could also stand us in good stead to:

• Set short- and long-term financial goals. Tell your family about it so that they can adjust their habits if need be, so that you can achieve your goals.

• Be honest with yourself and make a clear distinction as to what you “want” and “need” in your life.

• If you are not already in the habit of drawing up a budget, start doing so immediately – especially if your income has been affected in the last 12 months.

• Stop seeing conversations about money, debt, insurance, credit and financial options as taboo. Speak to family and friends and, more importantly, professionals in the financial industry.

• Use the technology at your disposal to access sites with financial information and become informed. Knowledge is power.

Even though we have started administering the Covid vaccine to our population, we are a long way from being safe and secure from higher infection rates and further lockdowns.

One just has to look at what is happening in India right now to know that the future remains uncertain.

Try and create an emergency fund and save as much as you can.

Don’t spend recklessly or get into debt just to impress the Joneses.

There are no more Joneses and getting into debt for brand name items certainly isn’t something a Higher Power is expecting you to do!

If you can comfortably afford all your Labarang, Christmas, matric ball and special occasion wants and needs, then go for it!

But if you can’t – then don’t. It really is that simple.

Eid Mubarak to all our Muslim readers, and hou lekker Labarang.

[email protected]