DDHK. ORG - Family routine expenses and purchases must be managed properly, in order to get the pleasure of Allah Ta'ala. Therefore, all expenses must be written down and a budget planned.
This was conveyed by Ustadzah Qurroh Ayuniyyah, when delivering the themed study material Financial management Islamic families at the Halaqoh Pekan for expatriate mothers in Hong Kong, 6 October 2020.
SUTK formula
He also introduced the SUTK formula for managing personal expenditure budgets. Namely, S for zakat, donations and alms; U for debt; T for savings, emergency funds, and investments; and K for consumption.
Ustadzah Qurroh gave an example of the percentage distribution. The S component is 10 percent, with details of 2,5 percent for zakat, and 7,5 percent for infaq, alms, and waqf. Likewise with the expenditure component U, 10 percent.
For component T, 25 percent. The details are household savings of 5 percent, emergency funds of 5 percent, future investment of 10 percent, and insurance premiums of 5 percent.
As for the expenditure component for K, 55 percent. Namely the details, 50 percent for monthly living expenses, and 5 percent for lifestyle and entertainment.
One of the things that Ustadzah Qurroh reminded about in this study was the provision of emergency funds. Namely, funds that can be used in times of emergency, which occur outside of ordinary conditions. For example, when the condition is sick, the vehicle is damaged, or the main breadwinner is laid off.
According to theory, he said, the ideal amount of emergency fund is three times the monthly expenditure for a family without dependents. Meanwhile, families with emergency fund dependents need to prepare 6-9 times monthly expenses.
For a crisis like this pandemic, Ustadzah Qurroh suggested that each family prepare an emergency fund of 9-12 times their monthly expenses. [DDHK News]
