How to Manage THR 2026 Wisely: What Are the Tips?

The Hari Raya allowance (THR) is often seen as a ‘bonus’ awaited by many ahead of Lebaran. But without careful planning, the THR money can quickly be spent on short-term shopping. Therefore, it is important to manage THR wisely so that it is not only spent on consumption but can also be used for more beneficial purposes, such as saving, paying off debts, or investing. Start by outlining expenditure priorities, setting aside a portion for an emergency fund, and allocating funds for long-term goals — all of which can be done to make the THR last longer. You should prepare a financial plan well, keeping detailed records of expenditures with the amounts to be spent. This helps you avoid impulsive shopping. Prioritise urgent needs such as household necessities first. For those who already have children, you can set aside 30–40 percent of the THR for your child’s education. Investments should be placed on platforms that are reliable and legitimately regulated by the state. Don’t be lured by promises of large returns in a short period. Set aside 10 percent of the THR to pay zakat and infak. Receiving THR can be used to repay debts without disturbing your monthly cash flow. Delaying debt repayments can burden finances in the long term. Set aside 40 percent of the THR for essential needs. Household needs such as clothing and groceries can come from this allocation. These are some tips to manage THR so that it does not simply vanish. Hope it is useful!