Ramadan and Eid al-Fitr are among the most important moments for Indonesians. During this period, both Muslims and non-Muslims alike rush to buy special Ramadan treats, shop for new clothes, book transportation tickets, and, of course, prepare for the annual homecoming trip (mudik).

That’s why it’s no surprise that inflation (the rise in the price of goods and services) in Indonesia always spikes during Ramadan, particularly in the food and transportation sectors. To make sure this price increase doesn’t drain your wallet, check out these financial planning tips for Ramadan below.

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1. Plan ahead

The first step to managing your finances during Ramadan is to plan well in advance. Set aside a special budget for Ramadan and Eid-specific needs, such as iftar gatherings (bukber), afternoon hangouts (ngabuburit), buying new clothes, and booking flight tickets to visit your parents.

Don’t forget to allocate some money for charity during this holy month, as giving during Ramadan is believed to bring multiplied blessings.

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2. Hunt for free takjil

Want to save more money during Ramadan? Go hunt for free takjil! Takjil, by definition, refers to food served to break the fast. In many regions across Indonesia, takjil often consists of light snacks, but plenty of mosques also provide full meals like Soto Ayam, Nasi Pecel, and more.

This budget-friendly Ramadan tip is perfect for students or employees spending Ramadan away from home. Plus, if there are leftovers, you can even bring them home and save them for suhoor!

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3. Take advantage of discounts and clearance sales

One of the most common things during Ramadan is the abundance of discounts and clearance sales! This is especially true for clothing in major shopping centers and online marketplaces. Discounts can go as high as 60% off the original price. Besides direct merchant discounts, you can also benefit from credit card promotions. If you’re an Honest Card user, make sure to check out the latest Ramadan promotions here.

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4. Set aside money for emergency needs during Ramadan

The fourth money-saving tip for Ramadan is to set aside some funds for emergencies. Keep in mind that emergency expenses do not include impulsive shopping!

Examples of emergency needs include having to break your fast on the road due to traffic after work or running out of gas during your homecoming trip. Having an emergency fund helps cover such situations, ensuring your fasting goes smoothly.

To make things easier, you can use the Honest Card for these expenses. With tap-to-pay technology, you just need to tap your phone with the Honest app on an EDC machine to pay for emergencies.

Honest also offers an Admin Fee Refund Program for users who pay their credit card bills on time (before the due date). With the #ByeByeBiayaAdmin program, you can use your Honest Card for emergency expenses during Ramadan without worrying about extra costs.

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5. Manage your THR wisely

Ramadan is also THR season! The Holiday Allowance (Tunjangan Hari Raya or THR) is a non-salary income that companies are required to provide to employees before major religious holidays. THR is usually given a few days before Eid al-Fitr.

Since the amount is quite substantial, it would be a waste to spend it all on unnecessary things. This is your chance to be smarter with your money. If you’ve used your credit card for emergency needs as mentioned earlier, you can allocate part of your THR to pay off those expenses. Also, set aside some of your THR for angpao (gift money), charity, and, of course, savings for future needs.

Another crucial way to manage your finances during Ramadan is by practicing self-control. Fasting isn’t just about refraining from eating and drinking from dawn to dusk—it’s also about controlling materialistic desires in general. Whether it’s binge-watching K-dramas or impulsive shopping, it’s important to keep these habits in check during this special month. Plan your finances carefully this Ramadan to fast and practice self-control more effectively!