Step-by-Step Guide to Building a Monthly Budget in Saudi Arabia | Giraffy
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Budgeting

Step-by-Step Guide to Building a Monthly Budget in Saudi Arabia

Managing your finances effectively starts with creating a solid monthly budget.

Step-by-Step Guide to Building a Monthly Budget in Saudi Arabia

Managing your finances effectively starts with creating a solid monthly budget. Whether you're looking to save more, reduce debt, or simply keep track of your expenses, a well-structured budget is essential. This guide will walk you through the steps to build a monthly budget tailored to Saudi Arabia's unique lifestyle and financial landscape.

1. Assess Your Monthly Income

The first step to building a budget is understanding how much money you bring in each month. This includes:

  • Salary: Your net income after tax and deductions. (0% income tax is a perk of living in Saudi)

  • Side Income: Additional earnings from freelancing, investments, or rental properties.

  • Zakat Adjustments: If applicable, allocate a portion of your income for Zakat, as per Islamic principles.

๐Ÿ’ก Tip: Use online salary calculators or your bank statements to get an accurate figure.

2. Track Your Expenses

Understanding where your money goes is crucial. Divide your expenses into two categories:

  • Fixed Expenses: Rent, utilities, loan repayments, and transportation.

  • Variable Expenses: Groceries, dining out, entertainment, and other discretionary spending.

๐Ÿ’ก Pro Tip: Use apps like STC Pay or Mobily Wallet to categorize and track your spending automatically.

3. Set Financial Goals

Your budget should align with your short-term and long-term financial objectives. Common goals include:

  • Saving for Hajj or Umrah: Allocate a portion of your income for spiritual travel.

  • Buying a Home: Set aside money for a down payment on a property.

  • Emergency Fund: Aim to save at least 3-6 months' worth of expenses.

๐Ÿ’ก Example: If you're saving for a family vacation to Jeddah, determine how much you need and divide it into manageable monthly savings.

4. Allocate Spending Categories

Now that you know your income, expenses, and goals, assign percentages to different spending categories:

  • Housing (30%): Rent or mortgage payments.

  • Savings (20%): Emergency funds, retirement savings, or investments.

  • Utilities and Transportation (15%): Electricity, water, internet, and commuting costs.

  • Food and Dining (15%): Groceries and occasional meals out.

  • Personal Expenses (10%): Shopping, entertainment, and hobbies.

  • Miscellaneous (10%): Unexpected costs or family support.

๐Ÿ’ก Tip: Adjust these percentages to match your priorities and income level.

5. Use Budgeting Tools

Budgeting is easier with the right tools. Consider these options in Saudi Arabia:

  • Banking Apps: Al Rajhi Bank and Riyad Bank apps provide spending insights.

  • Budgeting Apps: Apps like Wally and PocketGuard help you track expenses and savings goals.

  • Comparison Apps: Apps like Giraffy help you compare and save on everyday expenses)

  • Excel Sheets: For a manual approach, download free budgeting templates tailored to Saudi residents.

6. Review and Adjust Regularly

A budget isn’t static—it evolves with your financial situation. Schedule a monthly review to:

  • Check if you're meeting your goals.

  • Adjust for unexpected expenses or changes in income.

  • Refine your spending habits for better outcomes.

๐Ÿ’ก Example: If your electricity bill spikes during summer, plan for higher utility costs during those months.

7. Stay Disciplined

Sticking to your budget is the most challenging yet crucial step. Use these strategies to maintain discipline:

  • Automate savings to ensure consistent contributions.

  • Avoid impulse purchases by waiting 24 hours before buying non-essential items.

  • Celebrate small wins, like saving on monthly groceries or hitting a savings milestone.

Final Thoughts

Creating a monthly budget is the foundation of financial stability and success. For residents of Saudi Arabia, aligning your budget with your lifestyle and goals ensures that you're prepared for life's opportunities and challenges. Remember, budgeting is a journey—start small, stay consistent, and watch your financial health improve over time.

Start building your monthly budget today, and take control of your finances! ๐Ÿ’ฐ