Ramadan and Eid al-Adha budget: how to prepare without going into debt
Updated 4 November 2026 · by Kenzalo
Ramadan and Eid al-Adha come back every year: the answer is a sinking fund. Estimate the total cost (extra Ramadan groceries, the Eid sheep and related costs), divide it by the number of months left and set that amount aside every month. During the month, track spending by category so you don't overspend.
Why these expenses throw your budget off balance
During Ramadan, grocery spending often rises sharply (ftour, the evening meal that breaks the fast, plus guests and pastries). Eid al-Adha adds the sheep, charcoal, utensils and sometimes clothes. Because these expenses all come at once, many households end the month overdrawn or borrow money.
The solution: a monthly sinking fund
A sinking fund is a small amount set aside every month for an expense you know is coming. Example (indicative amounts): you estimate Eid at 4,500 DH and there are 9 months left. Set aside 500 DH every month. When the day comes, the money is there.
The dates of Ramadan and Eid follow the Hijri (Islamic lunar) calendar and move about 11 days earlier each year: check the date for the year in question to work out how many months are left.
| Sinking fund (example) | Target amount | Months left | Per month |
|---|---|---|---|
| Eid al-Adha (sheep and costs) | 4,500 DH | 9 | 500 DH |
| Ramadan (extra groceries) | 1,800 DH | 6 | 300 DH |
| Back to school | 2,400 DH | 10 | 240 DH |
During Ramadan: staying in control
- Make a weekly shopping list rather than shopping day by day.
- Create a "Ramadan" category with the sinking fund as its limit.
- Write down your spending every evening after ftour: 2 minutes is enough.
- Plan separately for hosting guests and for zakat al-fitr (the charity given at the end of Ramadan).
Afterwards: start again for next year
As soon as Eid is over, start a new sinking fund for the following year. Spread over 12 months, the monthly amount becomes small and the celebration is no longer a source of stress.
Frequently asked questions
How much should I set aside for the Eid sheep?
Estimate the price of the sheep and the extra costs (transport, charcoal, butcher), then divide by the number of months before Eid. Prices vary by region and by year: start from what you paid last year, with a margin.
When should I start saving for Eid?
As early as possible, ideally right after the previous Eid: over 12 months, the monthly amount is small.
Is there an app to plan a Ramadan and Eid budget?
Kenzalo offers "yearly provisions" (sinking funds) for Eid al-Adha, Ramadan and back to school, with the amount to set aside each month and automatic renewal.