<h3>Received Your Salary? Receive Your Plan!</h3>
<h4>Financial Planning and Overcoming Seasonal Crises</h4>
How can financial planning help you overcome the "Shawwal year" crisis?
A journey that begins with awareness, continues with planning, and ends with peace of mind.
Imagine: The third day of Eid, wearing your best clothes, with a cup of coffee in your hand, you open the bank app... refresh the page, and the balance doesn't change. You read the shocking statement:
"Your current balance: 50 riyals."
A moment when you feel like you've woken up to a nightmare, and the question repeats in your mind: "How did I get here?"
💡 Rest assured... We're still in Ramadan, salaries have just been deposited, and you still have plenty of time to set your financial plan. As your trusted partner in your journey toward financial awareness, our team has prepared a solid plan to avoid the "Shawwal year" crisis.
<h4>First: Before Eid - Everything Starts with a Plan</h4>
Every spending season has its uniqueness and deserves a pre-prepared plan. How do you start?
· Identify expected costs: Write a detailed list of primary and secondary expenses (clothes, outings, bills, Eid gifts, etc.), ensuring that Eid expenses do not interfere with your basic needs budget.
· Set a clear budget: Cover your needs first, and don't forget to be honest in prioritizing.
· Start saving early: Create a seasonal savings fund well before the occasion to ensure you have an amount that covers all expected costs. (Keep in mind that the best time to plan and save for the next Eid starts from the Rajab month salary).
<h4>Second: During Eid - No Excess, No Negligence</h4>
Remember that true joy doesn't come from consumption, but from contentment and peace of mind.
· Control yourself: Financial discipline isn't deprivation but respect for your goal and future.
· Recall the saying of the companion Omar bin Al-Khattab: - may Allah be pleased with him - to Jabir bin Abdullah: "Do you buy everything you desire?"
· Enjoyment doesn't mean recklessness: And generosity doesn't mean exceeding your budget.
Our advice for controlling expenses:
· Avoid random shopping: Return to your plan before making any financial decision.
· Don't fall into the trap of social comparisons: Don't spend according to how your peers spend, as your financial situations and goals are certainly different.
· Stick to your budget: Stay away from credit card purchases that may harm you more than benefit you if you don't have the amount to pay off the card afterward.
💡 Remember: Self-control is a skill acquired over time, not overnight.
<h4>Third: After Eid - Be Honest with Yourself, and Prepare for What's Coming</h4>
After any spending season, make sure to have a candid session with yourself to evaluate your financial situation.
· Review your expenses: Ask yourself what was truly necessary? And what could have been dispensed with?
· Don't beat yourself up: It's natural to exceed the budget sometimes, but the important thing is to learn from the experience.
· Start building a savings fund immediately: To be prepared for the next season without financial pressure.
💡 At Tamra Finance, we provide you with an "Emergency Fund" that helps you save wisely and protects your money from the effects of inflation.
<h4>Fourth: Conclusion - Is Shawwal a Month or a Year? The Decision is Yours!</h4>
The month of Shawwal may feel heavy and long, like a whole year, if planning is absent.
The Tamra Finance team believes that your financial awareness, smart planning, and seasonal savings fund are your real tools to avoid seasonal financial crises.
Don't leave things to chance. Invest in your financial awareness today, and be prepared for any spending season, so you don't find yourself at the end of the month mastering "the arts of austerity" and living on fifty riyals until the next salary drop!
💌 If you've managed to master "the art of austerity," please share your experience with us at: info@tamracapital.sa so we might be inspired by your story and benefit others!
💡 Always remember: Financial awareness isn't just about numbers, but a lifestyle.

Financial planning and overcoming seasonal crises

Received Your Salary? Receive Your Plan!

Ramadan and Market Volatility: Should We Advise You to Invest?
The month of Ramadan introduces us to deeper concepts of investment. In it, we learn that our true wealth is in our hands, and that our investments can be much more comprehensive than the numbers reflected in our bank and investment accounts. Ramadan is a golden opportunity to grow our wealth in religion, health, family, relationships, and peace of mind.
Regarding financial investment, it's natural to feel uneasy about the general situation when you hear what's happening around the world with stock markets falling due to external political situations and global economic conditions.
So it's your right to wonder:
Should I continue with my goal and invest my monthly savings that I deduct from my salary?
Should I pause until the situation calms down?
Should I take advantage of the market downturn and double my investment?
What is the right decision?
To make the right decision, it's essential to understand the following:
What's happening in the market?
Since February 20, stock markets have been fluctuating, retreating, and falling due to many factors, most importantly:
The US President's decisions to raise tariffs on Canada and Mexico by 25%, increase tariffs on China from 10% to 20%, impose tariffs on European countries, and other decisions that shake the stability of global markets.
And the result?
• The US market index (S&#x26;P 500) is down 4.59% from the beginning of 2025 until today.
• The Dow Jones Industrial Average is down 2.46% from the beginning of 2025, but it's holding up a bit.
• The Saudi market index (TASI) is down 3.29% from the beginning of 2025.
And other examples of global indicators that say there is turmoil in stock markets, decline, and general concern, but
What's the other side of the story?
In economic history, the occurrence of these events is a sign of new investment opportunities, because the market returns stronger afterward. The conscious investor seizes the market downturn and invests at the lowest prices (seeing it as a discount period). While the amateur investor (or speculator more accurately) panics and moves to sell their shares and investments due to momentary emotion without looking at the bigger picture.
COVID-19 bears witness
The COVID-19 pandemic is the biggest example in recent history that testifies that after hardship comes ease! At the beginning of 2020, after the announcement of the spread of COVID-19 and the implementation of precautionary measures, there was a sharp decline in global markets, and the stock market collapsed!
The S&#x26;P 500 index (the largest stock market index in the world) fell about 34% in March 2020, followed by stock markets in most countries of the world. But what happened a few months later turned the tables! The market began to recover quickly and rose again to levels higher than before the collapse and recorded new record levels within months in 2020!
The current situation and your portfolio performance?
We understand that you don't have the time and dedication to follow market news and analyze it to study the impact of what's happening on your investments, and this is the right behavior, because you are an investor, not a speculator. If you were a market speculator, you would care about instant news and its impact on the performance of the stock market and on the performance of your investments. But as an investor, you don't care about instant news, because you know that investment is a long journey, and in the end, the market grows and returns grow with it. But we want to reassure you that the Tamra Financial team is here! Our strategy is built on the principle of investing with minimal risk, and our portfolios follow the "MMM" concept, which we will simplify for you in the next section.
The "MMM" concept, your trusted shield:
Simply put:
Tamra Financial portfolios are built on the concept of a diversified balanced portfolio that reduces your risks while increasing your returns in the long term, how?
Our portfolios do not rely on investing in one type of asset or one financial market, but on the contrary, we rely on diversifying your investments in different global markets. This means we don't depend on the performance of one sector or a specific geographic region. This guarantees you less volatility, because if there are fluctuations in a particular market or asset, the diversified assets in the portfolio help reduce the risks to its performance so that your investment is not significantly affected by the decline of any one of the assets or markets in itself.
Simply put, our diversified balanced portfolios act as a shield that protects you from market fluctuations and guarantees you a more stable investment journey and growth.
The role of Tamra Financial experts
The role of our financial experts focuses on monitoring performance and rebalancing the proportions of assets and markets in client portfolios periodically to ensure that their investments remain aligned with their long-term financial goals and grow continuously with minimal risks.
In conclusion:
<ol>
<li>
Don't let the news distract you: The market goes up and down and this is normal, emotional and unstudied reactions increase the likelihood of exposure to loss. The phrase we always repeat is "Crises are transient, and markets are always rising" and this is what history has proven!
</li>
<li>
Seize the opportunity and focus on the goal: You are an investor, not a speculator. If you invest every month for a (long-term) goal, this is a golden opportunity for you to buy at a cheaper price, and you'll thank yourself later, because you're simply averaging the cost to you (what does cost averaging mean? Don't worry, we'll explain it to you in another article!).
</li>
<li>
Rest assured: Our specialized team is keen on growing your wealth, so all you have to do is give us your trust, focus on achieving your other goals, take advantage of the blessed month of Ramadan, and enjoy the most beautiful months of the year.
</li>
</ol>

Ramadan introduces us to deeper concepts of investment. In it, we learn that our true wealth is in our hands

Ramadan and Market Volatility: Should We Advise You to Invest?

<h3>Tamra Financial Portfolios Performance</h3>
<h5>Performance Chart for 2024</h5>
The annual performance of Tamra Financial portfolios assuming a one-time investment of SAR 10,000 on January 01, 2024, without any additional deposits, leaving the amount invested until December 31, 2024.
<img src="/assets/images/blogs/tamra-performance-2024.webp" alt="tamra-performance-2024">
<h5>Performance Indicators</h5>
<img src="/assets/images/blogs/tamra-performance-2024-table.webp" alt="tamra-performance-table-2024">
<h5>Performance Chart for 2023</h5>
The annual performance of Tamra Financial portfolios assuming a one-time investment of SAR 10,000 on January 01, 2023, without any additional deposits, leaving the amount invested until December 31, 2023.
<img src="/assets/images/blogs/tamra-performance-2023.webp" alt="tamra-performance-2023">
<h5>Performance Indicators</h5>
<img src="/assets/images/blogs/tamra-performance-2023-table.webp" alt="tamra-performance-table-2023">
<h5>Performance Chart for 2023 and 2024</h5>
The historical performance of Tamra Financial portfolios assuming a one-time investment of SAR 10,000 on January 01, 2023, without any additional deposits, leaving the amount invested until December 31, 2024, meaning the amount remained invested continuously for two years.
<img src="/assets/images/blogs/tamra-performance-2023-2024.webp" alt="tamra-performance-2023-2024">
<h5>Performance Indicators</h5>
<img src="/assets/images/blogs/tamra-performance-2023-2024-table.webp" alt="tamra-performance-table-2023-2024">
<h3>Comparing Tamra Financial's Aggressive Portfolio Performance with Similar Robo-Advisor Platforms for 2023 and 2024</h3>
<h5>First: Performance Chart for Portfolios with One-Time Initial Deposit Excluding Fees and Zakat</h5>
The historical performance of aggressive portfolios (highest risk level) for Tamra Financial and two other platforms selected based on the availability of their portfolio information for the period, assuming a one-time investment of SAR 10,000 in each platform on January 01, 2023, without any additional deposits, leaving the amount invested until December 31, 2024.
The performance here does not take into account the impact of platform fees or investment zakat, to highlight the financial capabilities and expertise of each team in creating portfolios that provide clients with high risk-adjusted returns.
<img src="/assets/images/blogs/robo-performance.webp" alt="robo-performance">
<h5>Performance Indicators with One-Time Initial Deposit Excluding Fees and Zakat</h5>
<img src="/assets/images/blogs/robo-performance-table.webp" alt="robo-performance-table">
<h5>Second: Performance Chart for Portfolios with One-Time Initial Deposit Including Fees and Zakat</h5>
The historical performance of aggressive portfolios (highest risk level) for Tamra Financial and the other two platforms selected based on the availability of their portfolio information for the period, assuming a one-time investment of SAR 24,000 in each platform on January 01, 2023, without any additional deposits, leaving the amount invested until December 31, 2024, with platform fees deducted at the end of each month, and zakat deducted at the end of each year. The portfolios' performance at the end of the period was compared to a savings amount of SAR 24,000. Tamra Financial's fees for any invested amount less than SAR 60,000 are SAR 240 annually.
<img src="/assets/images/blogs/robo-performance-2023-2024-second.webp" alt="robo-performance-2023-2024">
<h5>Performance Indicators with One-Time Initial Deposit Including Fees and Zakat</h5>
<img src="/assets/images/blogs/robo-performance-2023-2024-second-table.webp" alt="robo-performance-table-2023-2024">
<h5>Third: Performance Chart for Portfolios with Regular Monthly Deposits Including Fees and Zakat</h5>
The historical performance of aggressive portfolios (highest risk level) for Tamra Financial and the other two platforms, assuming a monthly investment of SAR 1,000 in each platform from January 01, 2023, to December 31, 2024, with platform fees deducted at the end of each month, and zakat deducted at the end of each year. The portfolios' performance at the end of the period was compared to a savings amount of SAR 24,000. Tamra Financial's fees for any invested amount less than SAR 60,000 are SAR 240 annually.
<img src="/assets/images/blogs/robo-performance-2023-2024.webp" alt="robo-performance-2023-2024">
<h5>Performance Indicators with Regular Monthly Deposits Including Fees and Zakat</h5>
<img src="/assets/images/blogs/robo-performance-2023-2024-table.webp" alt="robo-performance-table-2023-2024">
<h5>Important Considerations:</h5>
• Zakat Calculation: The annual zakat rate for Tamra Financial's passive portfolios ranges between 0.64% - 0.43%, while for active funds it is 2.5%.
• Hidden Fees: These are fees charged above the stated management fees and may be applied to withdrawals/redemptions, deposits, or subscription to specific ETFs within the portfolio. Tamra Financial has no hidden fees.
• The mechanism for calculating zakat and hidden fees has an impact on the portfolio's net performance return. Therefore, this should be considered when comparing portfolio performance across different platforms.
• Portfolio performance data with a fixed monthly investment of SAR 1,000 during 2023 and 2024 was provided to explain the impact of the cost averaging strategy, as well as the effect of fees and zakat on returns. This strategy is an investment approach that relies on pumping fixed amounts regularly instead of investing a large amount at once, helping to reduce the impact of market fluctuations on the overall purchase price. For example, when investing SAR 1,000 monthly in an investment portfolio, the investor buys different quantities of assets according to changing prices, meaning they will get more units when prices are low and fewer units when prices are high, thus reducing the average investment cost over time. This method helps distribute the investment cost over a longer time frame, reducing the impact of sharp market fluctuations and providing a more stable approach to achieving sustainable portfolio growth. Based on portfolio performance using the cost averaging model, Tamra Capital's portfolio showed higher returns compared to competitors, even after accounting for investment management fees and zakat, despite the simulation being conducted only for 2023 and 2024. Performance is expected to be better with a longer investment horizon, enhancing opportunities for higher returns in the long term.
• Past performance does not guarantee future performance, and the value of investments in any portfolio may increase or decrease compared to what is announced, and the targeted and expected results for each portfolio on any platform are not guaranteed.

A simplified report on Tamra Financial portfolios performance for 2023 and 2024

Tamra Financial Portfolios Performance for 2023 and 2024

<h3>Diversification in Investment: The Secret to Financial Success</h3>
How does diversification help you build a strong financial future?
Have you heard the saying "Don't put all your eggs in one basket"?
This proverb expresses a basic concept in the world of investment; diversification. If you want an investment that guarantees you reduced risks and increased returns in the long term, diversification is the first and basic step.
<h4>What is diversification?</h4>
Simply put, diversification is distributing your investments across different assets and financial markets instead of concentrating all your investments in one place. The idea here is that you mitigate the impact of any losses in a specific asset or market by distributing the risks across different and multiple assets, sectors and markets.
<h4>Why is diversification important?</h4>
· Risk Reduction: When your money is distributed, any loss in a specific investment will not affect you much because your other investments can compensate for the loss by increasing their price at the same time!
· More stable returns: Diversifying your portfolio helps you avoid market fluctuations and achieve consistent returns in the long term.
· Greater growth opportunities: Diversification opens the way for you to benefit from multiple sectors and markets that are growing in different ways, especially from promising new sectors, such as renewable energy, artificial intelligence, financial technology, and other new sectors.
<h4>How ​​is diversification?</h4>
Diversification is at three main levels:
<ol>
<li>
Asset diversification: Invest in stocks, bonds, real estate, and commodities (such as gold and oil).
</li>
<li>
Sector diversification: Don't focus on just one sector. Distribute your investments across different sectors such as technology, health, energy, and others.
</li>
<li>
Market diversification: Investments should not be limited to local ones. Invest in different international markets to reduce the impact of fluctuations in one market.
</li>
</ol>
Practical tips for applying diversification yourself
· Don't overdo diversification: Diversification is useful, but spreading your portfolio across a large number of assets can reduce your returns, so choose carefully.
· Choose mutual funds or index funds (ETFs): These funds provide automatic diversification because they invest in a large number of companies and assets, and usually track global market indices, such as index funds that track the US market index (S&#x26;P 500), for example.****
· Review your portfolio regularly: Markets are constantly fluctuating, so you must ensure that your asset allocation is still in line with your goals.
· Keep your goals at the forefront: After choosing your goal, determine your willingness to take risks and choose assets based on them. For example:
o If you prefer stability in your investments, focus on investing in large proportions in bonds, real estate, and gold.
o If you prefer greater growth, focus on investing in stocks.
<h4>The role of Tamra Financial in diversification</h4>
At Tamra Financial, we know that diversification is an essential step for every investor. That's why we provide you with diverse and balanced investment portfolios that meet your financial needs and personal goals, without you having to diversify yourself, meaning we save you time and effort.
Our investment portfolios are designed using <a href="https://tamracapital.sa/en/blog/robo-advisory">Robo-Advisor Technology</a> to ensure smart diversification, and include:
<ol>
<li>
Emergency Portfolio (almost zero-risk): The idea behind this portfolio is to protect you from inflation. Instead of leaving your money in a bank account and letting it be affected by the inflation factor, you should invest it in a safe and risk-free way to give you a good return with almost zero risk. At least it gives you a return that is higher than the inflation rate. This portfolio invests in money market funds that track the Saudi SAIBOR index.
</li>
<li>
Quiet Portfolio (Low Risk): Suitable for investors who prefer safety over high returns in their investment. Because the portfolio risks are considered low with a large distribution of investment in bonds, whose risks are much lower than the risks of investing in stocks. The asset distribution in the portfolio is as follows:
</li>
</ol>
a. 60% bonds
b. 25% stocks
c. 5% real estate
d. 10% gold
<ol start="3">
<li>Moderate Portfolio (Medium Risk): A combination of risk and growth, because it distributes investment equally between bonds and stocks, and is suitable for investors who want a balance between safety and returns. The asset distribution in the portfolio is as follows:</li>
</ol>
a. 40% stocks
b. 40% bonds
c. 10% real estate
d. 10% Gold
<ol start="4">
<li>Adventurous Portfolio (Medium to High Risk): Directed to investors seeking rapid growth and willing to take higher risks by increasing the percentage of investment in stocks. The asset distribution in the portfolio is as follows:</li>
</ol>
a. 50% Stocks
b. 30% Bonds
c. 10% Real Estate
d. 10% Gold
<ol start="5">
<li>Adventurous Portfolio (High Risk Portfolio): Directed to investors seeking rapid and sustainable growth in the long term to achieve their large financial goals with greater returns. The asset distribution in the portfolio is as follows:</li>
</ol>
a. 74% Stocks
b. 11% Bonds
c. 5% Real Estate
d. 10% Gold
<h4>Smart Technology Designed for You</h4>
Tamra Financial relies on advanced algorithms and modern technologies to design balanced investment portfolios that suit your financial goals. Our goal is to achieve high financial returns and reduce risks for our clients through smart diversification in assets and markets. This means that you do not need to worry about the details, because we take care of them for you, and all you have to do is focus on building your financial future with confidence and ease.
<h4>Your Future Starts Now</h4>
Diversification is the key to a successful and stable investment. Whether you are a beginner or an experienced investor, Tamra Financial provides you with the tools and support to build a diversified and balanced portfolio with assets in local and international markets.
<a href="https://tamracapital.sa/en/how-tamra-works#how-do-you-start">Click here to start investing</a>

How does diversification help you build a strong financial future?

Diversification in Investment: The Secret to Financial Success

<h3>How a Robo-Advisor Makes Investing Easy: A Practical Guide for Beginners in Saudi Arabia</h3>
Investing can be complicated, especially for beginners, when we hear terms like “stock market”, “mutual funds”, or “bonds”. We may feel nervous as if we are entering a strange world. I remember when I first started thinking about investing, I was excited but at the same time I was hesitant because I didn’t know where to start. Should I invest in stocks or bonds? Do I have enough money to start? Is it a risky venture that I could lose?
If you have the same questions, you are not alone. The good news is that investing is no longer as difficult or worrying as before. Technology today has made the subject much easier, and there are now solutions that suit everyone, even those who have no experience in investing. One of the best of these solutions is the Robo-Advisor platform, which is a digital financial assistant that manages your investments automatically and professionally, without any effort from you. Let’s learn more about the Robo-Advisor and how it can help you build your financial future with confidence and comfort.
<h4>What is a Robo-Advisor?</h4>
A robo-advisor is an online platform that uses advanced technologies to automatically manage your investments. It’s as if you’re dealing with a personal financial advisor, but instead of meetings and high costs, you use an app or website that manages your investments. You don’t need to be an investment expert because the robo-advisor does all the complicated work for you.
As soon as you register, the robo-advisor asks you to answer simple questions such as: “What is your goal when saving?”, “How willing are you to take risks?”, and “Do you know what has higher risks: stocks or Bitcoin?” For example. Based on your answers, it will start designing a customized investment plan that suits your financial ambitions, and suggest an investment portfolio consisting of stocks, bonds, real estate, and some commodities, such as gold, for example. That is, when you invest a small amount through the platform, the platform distributes the amount you invest across all these different assets. That is, the matter is simple and smooth, as if you were using a banking application or even ordering a meal through delivery applications.
<h4>Why is the robo-advisor an ideal choice for beginners?</h4>
When I started investing, I was trying to learn everything by myself, and I was reading articles and watching videos to learn how to trade in the stock market, and know when to buy so as not to lose. But honestly, the subject was a bit confusing and complicated; however, I tried to learn as much as possible about trading, I find it difficult to choose a stock to buy, and I think at the time "This stock will definitely rise with time!", but the shock surprises me when the stock's value drops, and I get scared at that time and sell! Over time, and after many failed attempts, and losing large amounts for me, I decided that I would never trade. But then I heard about the robo-advisor platform, and I decided to try it, and this was the best decision for me. I felt a big difference in the new way of dealing with my investments. These are some of the reasons that make the robo-advisor platform an excellent choice, especially if you are at the beginning of your investment career:
<h4>1. Ease of Use</h4>
The goal of a robo-advisor is to make investing easy for anyone, even if they don’t have financial experience. Most platforms start with clear and simple questions about your financial goals. For example, are you saving for a home? Planning for retirement? Or even saving for travel? The robo-advisor uses this information to build an investment plan that suits your financial goals and your ability to tolerate investment risks, because no investment is without risk, and the more you want higher investment returns, the more you should invest in assets with somewhat higher risks.
The process of registering on the platform and setting it up took me about 5 minutes, and honestly, it was a comfortable feeling. I didn’t need to worry about choosing stocks and funds or timing the market; the robo-advisor took care of everything and suggested the right portfolio for me.
<h4>2. Low and convenient cost</h4>
Some people avoid financial advisors because of the high cost. The robo-advisor provides the same services at a lower cost. Typically, financial advisor fees range from 1% to 2% per year, but with robo-advisor platforms, fees range from 0.25% to 1% per year - maximum - of the portfolio value. This means that if you are just starting out and investing a small amount, the robo-advisor provides you with a reasonable option that guarantees you entry into the world of investment without significant costs.
<h4>3. Automatically manage your portfolio</h4>
One of the great features of the robo-advisor is that it manages your portfolio automatically. This means that you do not need to monitor the market or make decisions on a daily basis. Once you register and answer the questions, the robo-advisor takes care of the rest. All you have to do is deposit in the portfolio and the platform takes care of the process after that. It even rebalances your investment portfolio, what does that mean? This means that when the market conditions change, the robo-advisor makes adjustments to the portfolio to maintain its balance and ensure that you achieve your financial goals throughout your investment period on the platform.
For example, if the value of stocks increases significantly and occupies a large part of your portfolio, the robo-advisor can transfer some of the money in your portfolio from one asset to another to distribute your investments in the basic and balanced form at the beginning of your investment journey to reduce your risks. All this happens without you lifting a finger. "Set it and forget it" means that I don't need to constantly check my investments or worry every time there is a change in the market. It's as if you have a financial assistant working 24/7 and taking care of everything.
<h4>4. Automatically reinvest profits</h4>
One of the best features of the robo-advisor platform is that it automatically reinvests dividends, so you can easily benefit from the compound return feature. Your investment portfolio consists of funds that invest in various assets and companies, and over time, these funds distribute profits to investors. It is true that these distributions are a small part of the annual return on your investments, but the biggest profit comes from the growth in the value of the stocks in your portfolio, and reinvesting profits maximizes the return on your investment. Once a fund in your portfolio distributes dividends, the platform automatically reinvests them, without you having to do anything yourself.
A question may come to your mind: "Why don't I withdraw the dividends and benefit from them? Isn't that the purpose of investing?" Here we usually advise you to let the dividends be invested automatically so that you can benefit from the profits on a larger amount next time. That is, if you initially invested 10,000 riyals and received dividends of 100 riyals (for example, at a rate of 1% every quarter), next time the fund will give you 101 riyals instead of 100, because you added the dividends to the capital, and you now have 10,100 riyals. The difference is simple, right? But imagine repeating this process over many years! You will notice how the profits multiply thanks to the compound return and contribute to maximizing your investment continuously.
<h4>5. Automatically diversify the portfolio</h4>
The principle of diversification in investment is important because it helps you reduce risks. The idea is simple: don't put all your investments in one place. The robo-advisor automatically diversifies for you, building a portfolio distributed across stocks, bonds, real estate, and even commodities — like gold — based on your goals and risk tolerance. When I started using the robo-advisor, the portfolio was distributed across local and international stocks, bonds, real estate, and even gold. I didn’t need to research and think about all the details, and the result? A diversified and balanced portfolio distributed in a way that guarantees me high returns and greater stability.
<h4>6. Robo Advisor FAQ</h4>
It is natural that you are wondering or have concerns about dealing with a digital platform to manage your money. These are some of the questions that many people ask.
A. "If I want to talk to a real person."
Although the robo advisor relies on automation, it provides the option to talk to real financial advisors if you need any additional assistance.
B. "Is my money safe?"
Security is of utmost importance when dealing with money online. The robo advisor uses advanced security technologies to ensure that your financial information is protected. In addition, most robo advisors in Saudi Arabia are licensed and regulated by the Capital Market Authority with an official license or a permit to experiment under the FinTech lab, which ensures that your investments are safe and in line with international laws.
C. "What happens if the market goes down?"
Fluctuations in the market are natural and can happen at any time. The robo advisor deals with these fluctuations through smart strategies such as diversification and rebalancing. This way, even if the market goes down, your portfolio remains balanced and returns are stable, and you are not supposed to be afraid of market fluctuations in the short term, and you are focused on investing for years, because the impact of the decline in short periods does not make a difference to you in the long term, because the market is always growing and stocks are rising.
<h4>Conclusion</h4>
Investing does not have to be complicated or difficult. The robo-advisor makes the journey easier for you and provides you with a suitable investment plan at reasonable prices, without the need for continuous intervention. Whether you are at the beginning of your journey or have previous experience, the robo-advisor helps you grow your money in an effective and comfortable way.
My personal advice, if you are thinking of investing, the robo-advisor is the ideal choice for you and others. Because it suits all levels and their financial goals, especially in Saudi Arabia, with applications such as Tamra Financial that provide the robo-advisor service at competitive prices and high returns and at the peak of ease

Learn how modern technology helps you start your investment easily, especially for beginners.

How Robo-Advisor Makes Investing Easy

Saving is considered the first and most important commandment that our parents guide us to, as if there is an implicit agreement on that, in addition to the popular proverbs that call on us to save the white shark for the black day. Two people may not disagree on the importance of saving, as if saving is the main goal, but you may be surprised that saving What they mean is the beginning of the journey, not the end. In this article, dear reader, we will talk about saving as it should be.
<h3>What is saving?</h3>
Saving means allocating a portion of income to be used in the future rather than in the present, and is often saved in the form of cash at home, in a bank account, or saved by purchasing gold. The process of saving involves the belief that postponing the use of money from the present to the future will bring greater benefits. Accumulating savings will give us enough space to achieve goals that require larger amounts, such as expanding work or even traveling and entering into new adventures.
Saving is divided into planned saving and unplanned saving. In planned saving, a specific percentage of income is set aside each month for the purpose of saving, and this is the correct method of saving. As for unplanned saving, the individual sets aside the remainder of the income at the end of the month after consumption. If there is nothing left, no savings are made that month.
Here someone might say: How can I save when my income is not enough for me? Here we must stand honestly with ourselves and ask: Is our financial behavior as it should be or are there some mistakes? If your income is not truly enough for the basics of life, you must look for an additional source of income. We must be aware, dear reader, that our spending must be less than our income in all cases. We must adapt to our income. It is not acceptable for my income to be seven thousand riyals and my spending to be nine thousand riyals! This is what has been passed down through the generations in popular proverbs, which supports this: “Stretch your feet over your quilt.”
<h3>Why save?</h3>
The abundance of money may tempt us and push us to be lenient in saving, considering that we do not need it. This may be the case at the present time, but we do not guarantee the coming days. Saving gives us security from future fluctuations, whether financial or family.
We often save to cover the following aspects:
<ol>
<li>Saving for emergencies: No one is safe from the fluctuations of daily life. Your income may be good at covering your usual daily obligations, but how will you act if you have an unplanned financial obligation? How will you act if your house is exposed to a fire, God forbid?, or you bear medical expenses. Expensive? Suddenly lost your job? This part of the savings is intended to cover sudden life circumstances. The emergency savings fund should cover the necessary expenses for three to six months. It is never correct to use it in cases other than those specified. Here we must emphasize that we do not think poorly of God. On the contrary, we place our trust in God as He deserves by adopting the reasons.</li>
<li>Saving to cover short-term goals: In this aspect of saving, we start saving and have a goal in front of us that we want to reach, such as buying a car, paying a university tuition, traveling on vacation, or even to fulfill outstanding debts and obligations. And other goals that begin and end within a relatively short time.</li>
<li>Long-term saving: Money is set aside for long periods extending to more than five years, with the aim of improving the quality of life for the post-retirement period, or covering obligations that are expected to arise after this period, such as traveling to complete graduate studies, or starting a special project.</li>
</ol>
<h3>Savings and diminishing value</h3>
It may be expected that saving is saving money from consumption, but in doing so we ignore some aspects. It is true that the amount saved does not change in terms of the number of banknotes, but the value of the money is subject to continuous decline. What you used to buy for twenty riyals a few years ago, you now buy for thirty riyals. !.
On the other hand, we must pay zakat on the saved money every year, and this is another reason for the decrease in the saved amount. Therefore, we do not guarantee that the value of the saved money will be maintained, but rather we are certain that it decreases with the passage of time.
<h3>Saving is your way to invest</h3>
You may be surprised, dear reader, that saving is not a goal in itself, but rather a path that must be crossed in order to reach investment. We save first and then invest. Investment means using money to purchase assets that are expected to generate income or profit in the future. Therefore, investment will compensate us for the decrease in... The value of money, whether this is a result of the decrease in the value of money (inflation), or the performance of the obligation of zakat, and we see this in the guidance of Omar bin Al-Khattab, may he be pleased with him, when he said: “Deal in the money of orphans, so that zakat will not consume it.”
<h3>When do I start investing?</h3>
Before starting to invest, you must answer the following:
-Do you suffer from debt?
If you are suffering from debt, you may wonder: Should I start repaying the debts or should I start investing? In order to be able to answer, we must determine whether these debts are good loans without interest, or are they debts with interest.
You can agree with the lender to pay the debt in monthly installments, and on the other hand, you can start allocating an amount of money for savings, even if it is small.
If you borrow from more than one party, start arranging the debts from the most expensive, especially credit card debts, to the least expensive debts. This will give you more enthusiasm to continue the repayment process.
-Do you have an emergency savings fund?
As we mentioned previously, the Emergency Savings Fund represents security from exceptional circumstances in our daily lives. On the other hand, it guarantees us that we will not resort to taking from investment funds. Having easily accessible money in exceptional circumstances will not force me to sell investment assets to cover them. Therefore, the Emergency Savings Fund protects From sudden circumstances, it also protects the investment and maintains its returns.
If you are free of debt and have an emergency savings fund, you are now ready to start your investment journey. Remember that investing is not limited to the affluent, but rather a necessity for everyone.

Saving is considered the first and most important commandment that our parents guide us to, as if there is an implicit agreement on that

Saving is the path to investment

Welcome, now that you are here, you must be interested in improving your life financially. In this article, we will give you a snack about what you should know about financial awareness.
<h3>First: What is financial awareness?</h3>
Financial awareness means possessing a set of knowledge and skills necessary to make the right financial decisions at the right time.
Understanding the nature of money and possessing the skills to deal with it will make you better able to deal with the financial problems and obstacles you face in your life, from buying your daily necessities to making crucial and investment decisions. On the other hand, it relieves you from the trouble of facing many problems resulting from poor financial management, such as resorting to borrowing or living with a low standard of living.
A good and stable standard of living is not related to the amount of money we have, as much as it is related to how we deal with money. What matters is not what money you have, but rather how you deal with it. Therefore, we see from time to time that those who we considered to be rich have begun to ask for subsidies!
<h3>Second: The importance of developing financial awareness skills</h3>
Positive dealing with money is a basic skill that can be acquired. You may acquire it from your family, school, and work. However, you will need to organize these skills and make them deeper and clearer. However, you may not have an environment that cares about financial awareness. Here the responsibility will fall on you alone in developing your financial skills, and this is not It is a choice, even a duty, that must be made if you seek a decent life, given the growth and complexity we are experiencing in the financial aspect of individuals, in addition to the growth and increase in the requirements of life as a whole.
Financial awareness will give you the ability to control money by organizing your priorities, financial planning, and getting rid of debt. It will protect you from chasing offers and discounts. Remember that you are the first target for all sellers!
Money is a good servant and a bad master
In order for you to realize the importance of financial awareness, you must imagine that, God forbid, you lost your job, which constitutes the primary source of income for you and your family. Imagine that you did not find a job and this situation continued for two or three months. Where will you get the money to cover your family’s expenses for all this period? Will you resort to borrowing? What will you do with the accumulation of debt?
Imagine, God forbid, that one of your family members had to undergo an expensive operation in a private hospital that is not covered by insurance. Will you cover him by borrowing? Even sudden moderate expenses such as unplanned home maintenance, or even sudden social event costs. How will you deal? Will borrowing be the same? Your first solution? Or will you have to sell some of your belongings?
Financial awareness will give you protection against these circumstances. Protection that stems from your personal behavior, stems from your positive dealings with money. Financial awareness is not a luxury of knowledge, but rather the basis of a decent, stable life.
<h3>Third: Basic skills for building financial awareness</h3>
You may be wondering what skills I need to acquire in order to be financially conscious? There are five basic skills that I must learn in order to achieve this:
<ol>
<li>Basics of budget preparation: The first enemy of financial stability is unplanned spending, because it makes us easy prey for momentary pleasure, neglecting our necessary needs and financial capacity. Preparing a budget gives us the opportunity to know our approximate income, and it also helps us to be more aware of the process of spending and arranging priorities. Which protects us from ourselves and our personal desires to be more rational in our financial dealings.</li>
<li>Giving priority to saving money: Many of us believe that what is directed toward saving is the remainder of the income at the end of the month! However, this is one of the most common mistakes, as in most cases there will be no income remaining, and you may borrow to complete the month’s expenses!
Saving must be taken at least 10% of income at the beginning of the month, and I promise you that you will not feel the loss of this percentage. The evidence for this is remembering the salary increase that you recently received, which did not make a significant difference in your standard of living, to the point that you now do not feel its presence. However, before the increase Your salary was at the same level, so why not direct it to the savings fund!</li>
<li>Understanding debt: You should not view borrowing as a way out of any financial predicament, because it leads to an imbalance in the flow of income. Borrowing means that you are spending income from the future on an obligation in the present! Which forces you to borrow again in the future to cover its expenses, and this puts you in a never-ending cycle of borrowing!
Therefore, you must learn how to deal with debt and get rid of it. Here we are not talking about usurious borrowing because it is forbidden by Islamic law, and on the other hand, it leaves us facing a more complex problem. In general, be sure that freedom from debt does not come by chance, but rather requires commitment to a plan to end it.</li>
<li>Financial safety and financial identity theft: You must learn how to preserve your financial information, especially since we are in the era of financial technology, which has provided many services via phone and facilitated the operations of hacking bank accounts and credit cards. On the other hand, you must learn more about the widespread fraud schemes. So that you do not fall into it, and how to act if you are a victim of a scam.</li>
<li>Understanding the mechanism of money: There is a famous saying that says that money brings money, and it is completely true. We either spend money on purchasing liabilities such as trips, clothes, and other expenses that represent a decrease in the money we have, and here money will not bring money. Or we can spend the money on assets such as buying company shares, real estate, and other assets that will represent a new source of income over time.</li>
</ol>
Now consider with me these basic skills. How many skills do you have? Every skill you master makes you more capable of dealing positively with money. Remember that we are not slaves to money, but dealing negatively with money will make us so. You will work for hours to eliminate debts and will not end. You will continue day and night without... A real improvement in your standard of living, but know that financial awareness is the straight path to financial stability and financial freedom.

Financial awareness means possessing a set of knowledge and skills necessary to make the right financial decisions at the right time

What you should know about financial awareness

Basic information about opportunity cost
Have you ever thought about the cost of going out with your friends? Or have you thought about the cost of your university studies? Or the cost of starting your own business? You may omit the opportunity cost from your calculations and estimate it as a monetary cost, but this cost is not economically accurate, as there are implicit, imperceptible costs involved in each of the previous options.
<h3>The concept of opportunity cost‌.</h3>
Limited resources require us to always be in the process of choosing one opportunity from among many. We will always have several options, but we can only choose one option to do, because we live with limited time and money and we cannot be in two places at the same time. .
For every opportunity we choose, we pay two costs. The first is the money or time we pay, and the second is the benefit of the opportunity we gave up. The cost of traveling for the purpose of tourism twice a year is what we missed in investment returns if we invested it, and the cost of going out with friends is sacrificing rest time. The cost of spending time with family is offset by missing out on wages for working extra hours.
There is something to gain and something to lose with every choice you make!
After understanding the concept of opportunity cost, we can define it as the returns or benefits that we lost from the best option left behind. If we imagine that we arrange the benefits of the options available to us from the greatest benefit to the least benefit, then the opportunity cost is the benefits achieved from the second option. If you have ten riyals, you will prefer to buy coffee with it, and if you do not have it, you will buy sweets. Buying sweets represents the second option, which is the opportunity cost of buying coffee.
<h3>The importance of understanding opportunity cost.</h3>
You may think, dear reader, that the concept of opportunity cost is a purely economic concept, but this concept is applied in all aspects of life, and understanding it correctly helps us improve the quality of the decisions we make, and thus improve the quality of life as a whole.
When we are informed about the potential costs and benefits of each option, it helps us choose the best available opportunities and prepare for possible consequences.
When you start switching between Twitter, YouTube, and Snapchat, ask yourself, is this the best option available for your free time? Before starting graduate studies, ask yourself: Does this option provide the best returns for money and effort? Before resigning from work to start your own project, ask yourself: Will it achieve returns greater than the job?
Every decision you make represents a trade-off with other options. This requires taking the time to research and think. We must emphasize that estimating the opportunity cost is a relative matter that varies from person to person and from time to time, and there is no accurate mathematical method for estimating it. It also entails psychological benefits that cannot be quantified monetarily, such as security and stability.
The present is the reflection of your decisions in the past, and the future is the improvement of the decisions of the present!
<h3>Opportunity cost and the future value of money.</h3>
Most decision-making tends to favor immediate consumption, but our awareness of the opportunities we will forego motivates us to compare the prices, returns, and benefits available between multiple options, both in the short and long term.
The cost of studying for a master's degree is not estimated only in the monetary costs paid to the university. You will often prioritize your time to study, so you will miss out on wages for the hours that you could have worked instead of studying, in addition to missing out on practical experience, which will be a key factor in determining your wages in the future.
To know the opportunity cost of studying for a master’s degree, imagine with me two scenarios:
<ul>
<li>The first scenario is that you worked hard at your work, developed some skills and took some courses.</li>
<li>The second scenario is that you completed your master’s degree full or part-time.</li>
</ul>
After three years, compare your wages in the first and second scenarios. If your wages after the master’s degree are higher than working, the study option will actually be the best option.
Another simpler example, imagine with me that you have an empty commercial property. You will have two options: either to rent it for 40 thousand riyals annually, or to start a commercial activity in it. Here you will think that you do not have the cost of the property because you are the owner of the property, but in calculating the opportunity cost they see You have the cost of a property, which is what you can get if you rent the property. If the income achieved from starting a business within the property is less than 40 thousand riyals annually in the worst cases, starting a business will not be the best option.
This comparison also applies to buying a lifetime home, or buying a home that is appropriate for the stage, or even renting it. Are the benefits achieved from purchasing a lifetime home greater and worth freezing the price of the property? Or will real estate investment generate higher returns in the long term?
`“The true cost of any purchase is not the actual cost in dollars. Rather, it is the value of the investment you did not make, because you used your money to buy something else.”
Warren Buffett.
<h3>One-time opportunity cost</h3>
Assuming that you received a windfall income of 10,000 riyals, you may intend to take a trip with the family with this amount because it is a windfall income and you did not incur any costs to obtain it. But if you invest it in a diversified, balanced portfolio with a profit rate of (10%) annually, after ten years it will be approximately (26,000) riyals, and if you wait an additional five years, it will reach (41,780) riyals, with the profits added to the principal amount. In this case, the opportunity cost of traveling with the family is the return on investment that you did not earn.
<h3>The opportunity cost of small, regular savings over time</h3>
You may think that buying a cup of coffee for ten riyals depends on whether you want the coffee or not, but the opportunity cost makes us wonder: Is it worth this value? What would I give up now for a cup of coffee? What would I give up in the future to get now?
The opportunity cost of buying a cup of coffee for ten riyals three times a week is equal to 120 riyals per month, per month for a year is equal to 1,440 riyals, and the cost of daily coffee for 10 years is 14,400 riyals, in addition to the returns that could have been achieved if this money was invested.
If the cost of coffee was invested three times a week for a year with a total of 1,440 Saudi riyals on a regular basis in an investment portfolio, the amount would grow to 3,735 riyals within 10 years, reaching 6,015 riyals after fifteen years.
Do not underestimate the alternative opportunity for simple daily expenses, because as they accumulate over time, they will have a significant impact that exceeds your expectations.
In conclusion, dear reader, remember that every decision you make includes an invisible cost, which taking it into consideration can affect improving the quality of your life and investment decisions.

Have you ever thought about the cost of going out with your friends?

Information about opportunity cost

<h1>How can I be rich without being lucky?</h1>
During the course of our academic education, we gain knowledge about different sciences, but we did not learn how to become rich. We did not learn how to deal with money. They tell us to work hard to get a job with a high salary and social status, but they do not teach us how to make money grow by itself. Rather, our knowledge about money is linked to With accounting, companies, numbers and difficult equations.
But do you think you can get rich when your idea of money is wrong? Or do you think that the rich got rich due to reasons beyond their control or that they were lucky? Have you honestly asked yourself how they became rich?
Reaching the stage of being rich represents the result of a journey of positive dealing with money, without being hindered by luck or external circumstances, because what you think in your head you will see before your eyes. In this article, we will present financial behaviors and beliefs that you must take into consideration if you decide to be rich.
<h3>The difference between assets and liabilities:</h3>
The first and basic rule in the journey to becoming rich is to learn the difference between assets and liabilities. Many people stumble in their financial lives as a result of not understanding the difference between them.
Assets are simply the thing that results in money coming into your pocket. There are many things that can be considered assets such as real estate investment, buying shares in companies, investing in a balanced investment portfolio, business, writing books and giving online courses, or even visual or audio content or Read online.
All of these examples result in a stream of income for their owner. These examples may require you to spend time, effort, money, or both at some point, but after that they will continue to work without intervention or with little follow-up.
As for liabilities, they are things that take money from your pocket, such as spending on cars, vacations, purchasing clothes and electronic devices, and eating out of the home. All of these examples result in a decrease in the amount of money you have as a result of repeated payments.
Spending on liabilities in an uncontrolled manner will keep you away from achieving wealth every day. If you look at a person’s budget and notice that it is full of liabilities while his assets are limited to one or two sources of income, then you are certain that he is not on the path to wealth. You, dear reader, can review your spending items and sources of income. To know whether you are on the path to wealth or whether you need to modify your financial behavior. Remember that what money goes into your pocket is considered assets, and what money takes out of your pocket is considered liabilities.
Here we must point out that we are not calling for stinginess or extreme austerity, but we are calling for you to be more aware when dealing with money, because your convictions regarding money are what shape your financial future.
The rich acquire assets, and the poor and middle class acquire liabilities that they believe are assets.
The book of Rich Dad and Poor Dad.
Imagine that <a href="https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/report.aspx?cid=55">borrowing</a> to purchase cars and personal transportation in 2021 amounted to 14,047 million Saudi riyals, and that borrowing to purchase Furniture and durable goods for the same year amounted to 12,214 million Saudi riyals, and this is a compound error because it is not only spending on liabilities, but borrowing to spend on them.
<h3>Opportunity cost:</h3>
We live in a world governed by relative scarcity, meaning that there is a limit to what we have available for anything. We only have 24 hours a day, and we have a specific amount of resources and a specific amount of money.
This will be reflected in our behavior directly. The time you spend is either studying or going out with friends, but you cannot do both at the same time. The time you spend at work cannot be used to learn programming, and the money you pay for university cannot be used to travel. This means You must choose only one option from among the available options, and this is what we call relative scarcity.
Comparing between the options available to us brings us to the concept of opportunity cost. When we make a choice between multiple options in front of us, we are in the process of balancing the benefits of each option in front of us. If we decide what we want, this means that we see that this option is the best available to us.
Any decision to make a purchase includes two balancing acts, the first balancing between money and the thing you want to buy, and the second balancing between benefiting from the thing you bought and benefiting from buying something else with the money.
For example, buying a piece of candy that costs twenty riyals means that you see that the benefit from the piece of candy is greater than the benefit from the twenty riyals.
On the other hand, you believe that the best option available to take advantage of the twenty riyals is to buy a piece of candy, but if you ask yourself what can be bought with twenty riyals other than candy? Assuming that you can buy a cup of coffee, if there is no coffee, you will buy apples.
This means that your preferences for spending twenty riyals are the first on sweets, the second on coffee, and the third on apples. Based on the concept of opportunity cost, the cost of buying a piece of candy is equal to twenty riyals in addition to the possible benefit from coffee if chosen.
Thus, the cost of any purchase includes two costs, the first cost is the cash cost and the other is the possible benefit from your second option.
There will always be several options for spending money, but we can only use it for one thing. Spending money on consumption means missing an investment opportunity. On the other hand, we must pay attention to the benefit left behind in the best available option, as the cost of purchasing a new car will be the price of the car in addition to missing the opportunity to invest money.
When you make any spending decision, ask yourself, is this the best money option available? What do I lose when I spend money on this option?
Weighing different options will continue with you along the way. If you want to be rich, you must develop your personal financial skills, master the distinction between assets and liabilities, and know the true cost of your options. Remember that the way you deal with money is what determines whether you will be rich or not.

During the course of our academic education, we gain knowledge about different sciences, but we did not learn how to become rich

How can I be rich without being lucky?

Have you ever thought about why they are rich? How do they accumulate all this wealth? Why do the rich get richer? Is wealth limited to them? Can I become rich? These questions must always be on your mind.
But rest assured, dear reader, there is no secret plan for wealth. You are the only person responsible for your level of wealth, and to the extent that you see that wealth is far from you, be sure that the only thing that separates you from it is the way you think about and deal with money.
The way of thinking about money is what determines your financial condition. The way of thinking financially is what makes the difference between the poor and the rich, and not the amount of money you have. You may find a person with a high income, but he is forced to borrow constantly. We see some rich people return to poverty after years.
Whereas rich people understand how money works, realize that money brings more money that works for them, and appreciate the true benefits of things.
Thus, we must agree, dear reader, in our thinking about money, as it is what determines our financial destiny. Therefore, we will seek to develop our financial skills in order to be rich with the wisdom we have, which protects us from returning to poverty. In this article, we will present some of the convictions that affect our financial lives and the paradoxes between the thinking of the rich. And others:
Benefit of money:
Imagine with me that on a very hot summer day you want to drink something cool to ease the heat, and you are faced with two choices: drink a cup of Pepsi or drink a cup of fruit juice. Both are cold, but the benefit to your body from them differs greatly.
This example also applies to money, as what you benefit from the riyal you spend to buy bread is different from what you benefit from the riyal you spend to buy a piece of cake, for example, and the riyals you spend on tourism are not compared to what we benefit from the riyals we spend on education, and this also applies to investment! The money you spend to buy luxuries differs in its accrued benefits from the money you gain from the money you invest.
The difference in benefit achieved from money is called the concept of “the benefit of money”. Banknotes are equal in terms of form and value, but the benefit achieved from them (the benefit of money) differs according to our use of money, and this fact is fully understood by the rich.
Here we can come to the conclusion that the amount of money we have is not as important as the way we use the money. Does the way you divide and spend your salary get you the greatest possible benefit from it? Is the way you save money giving you the best possible profits? Next time, before spending or saving any money, ask yourself: How can I get the most out of it? Remember that the way we deal with money is what determines our financial level in the long term.
Spending priorities:
After we agreed that the benefit (benefit) of one riyal varies according to the thing we spend it on, we must now discuss spending priorities, and based on them we determine the amount of benefit we achieve from money. Spending priorities are our compass for correct spending.
There are three basic levels of spending: necessary, necessary, and improvement:
<ol>
<li>
Necessary spending: It is spending that we cannot do without or reduce
Because of its connection to the basics of life, in fact, in low-income situations, we borrow
To cover it. Such as spending on basic requirements for the home and family, such as basics
Food, medicine, rent or house payment.
</li>
<li>
Necessary spending: It is the spending without which our lives would not cease to exist, but would exist
Life is hard and uncomfortable with the possibility of continuing it. Like there is a way
Contact with others, having a means of transportation, and having more than one dress for occasions.
</li>
<li>
Improvement or luxury spending: It is spending whose absence does not affect
Life, but its presence improves the quality of life, and makes us feel joyful, like purchasing
The latest release for your favorite mobile, leisure travel, or dining out
Home, or even buying clothes without having to do so.
</li>
</ol>
But how can we benefit from this division? We can do a simple exercise. Get a piece of paper and write on it every spending transaction you made today. After that, think about each operation and classify it into one of the following:
<ol>
<li>It can be dispensed with without affecting my daily life, and this is called improvement.</li>
<li>It is so indispensable that I borrow to buy it, so we call it essential.</li>
<li>It is irreplaceable but I may not borrow to buy it, and that is what we call it
Alhaji.</li>
</ol>
After this classification, you can calculate the total amount of money you spent on each of them. The greatest benefit achieved was from the money spent on the necessary, then the necessary, and the least benefit achieved from the money was what you spent on the improvement item. Note that the improvement item could have been dispensed with completely and used for spending. Necessary or necessary. What was applied in the previous exercise can be applied to the expenses of a week or a month so that you know how much you are missing out on the benefits of money.
Spending priorities vary according to the social situation and the place in which you live, and they differ over time as well. What is an improvement at one time may become a necessity after a number of years, but in no case is it acceptable for us to spend on improvement while we have a shortage of what is necessary or necessary! Borrowing to spend on improvement! Imagine, dear reader, that<a href="https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/report.aspx?cid=55"> </a>[borrowing](https://www.sama.gov.sa /ar-sa/EconomicReports/Pages/report.aspx?cid=55)<a href="https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/report.aspx?cid=55"> </a><a href="https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/report.aspx?cid=55">With the aim of </a>[ ](https://www.sama.gov.sa/ar-sa/EconomicReports /Pages/report.aspx?cid=55)<a href="https://www.sama.gov.sa/ar-sa/EconomicReports/Pages/report.aspx?cid=55">Tourism</a> in 2019 amounted to 455 million riyals Saudi, and in 2021 it increased to reach 646 million Saudi riyals.

Have you ever thought why they are rich? How do they accumulate all this wealth?

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