Ramadan is a month of blessings and worship, but it is also a month when spending increases significantly. With rising living costs, financial planning for Ramadan 2026 has become a necessity, not a luxury. In this guide, we provide a comprehensive financial plan to manage your expenses during the holy month.
Why Does Spending Increase in Ramadan?
Studies show that consumer spending in Saudi Arabia rises by 30-50% during Ramadan compared to regular months. The main reasons include:
- Increased food consumption, especially for Iftar and Suhoor
- Family gatherings and dinner invitations
- Paying Zakat and charity
- Eid al-Fitr preparations (clothes, gifts, Eidiya)
- Taraweeh and Itikaf expenses
Creating Your Ramadan 2026 Budget
Step One: Determine Your Monthly Income
Write down your expected total income during Ramadan and early Shawwal, considering that working hours are reduced during Ramadan.
Step Two: Categorize Expenses
| Expense Category | Suggested % | Example (10,000 SAR income) |
|---|---|---|
| Food & Iftar | 30% | 3,000 SAR |
| Rent & Bills | 25% | 2,500 SAR |
| Zakat & Charity | 15% | 1,500 SAR |
| Eid Preparations | 15% | 1,500 SAR |
| Transport & Emergency | 10% | 1,000 SAR |
| Savings | 5% | 500 SAR |
Tips for Saving Money on Iftar and Suhoor
- Plan meals ahead: Create a weekly menu for Iftar and Suhoor
- Buy in bulk: Dates, rice, milk, and juices are cheaper in bulk
- Reduce waste: Prepare appropriate portions and avoid making too many dishes daily
- Use promotions: Follow supermarket deals and app offers
- Home cooking: Eating at home is much more economical than restaurants
Planning for Zakat and Charity
Ramadan is the preferred time for paying Zakat to multiply rewards. Plan ahead:
- Calculate your Zakat before Ramadan begins using a Zakat calculator
- Set a fixed daily amount for charity during Ramadan
- Remember Zakat al-Fitr before Eid prayer
- Contribute to Iftar meals for fasting people through trusted charities
Eid Budget Planning
Start planning Eid expenses from the beginning of Ramadan:
- Clothing: Take advantage of Ramadan sales to buy Eid clothes early
- Eidiya: Set a total amount and distribute it based on number of children and relatives
- Gifts: Buy simple, meaningful gifts instead of expensive ones
- Feasts: Coordinate with family to split the cost of Eid meals
Common Financial Mistakes to Avoid in Ramadan
- Do not shop while hungry before Iftar
- Avoid emotional buying and over-purchasing food
- Do not use credit cards to finance Ramadan expenses
- Resist the temptation of deals on products you do not need
- Do not neglect your monthly bills because of Ramadan spending