Whether you are new to budgeting or have been budgeting for a while; there are always small changes that you can make to improve the efficiency of your budget. If you are looking for a few ways to improve your budget, you can use the following tips:

Keep an eye on borrowing

It is a good idea to ensure that your borrowings are a reasonable rate. Paying interest on debt is prohibited in Islam and it may also have a disastrous impact on your budget as each cent spent on interest payments is a cent that could potentially be used elsewhere.  Some general tips for getting rid of debt are paying the smallest loan first, paying off debt with the highest interest rate and paying more than the minimum required amount. If you are in a fix, now may be a good time to enlist professional assistance to work out the best repayment plan for your unique circumstances.

Develop an Emergency Fund

It’s difficult to budget for once-off expenses as you won’t know about them ahead of time, yet you are still expected to budget for them. An emergency fund can significantly improve financial security by creating a safety net that can be used to meet unanticipated expenses.

Set Goals

It is always good to revaluate our goals. As we progress through life our goals and objectives change. We need to ensure our budgets can keep pace with our changing lifestyle.

Leverage Technology

There are many programs and apps out there that have been designed to facilitate the process of creating a budget. Gone are the days when you were required to use a pen and paper to jot down each cent you are spending. Look for reputable programs that can be used or modify existing technology to ease the process of constantly adapting your budget to your changing lifestyle.

Allah Knows Best