Saving money is a skill that needs both hard work and dedication, and can be easily accomplished especially in a country like the UAE where tax rates are still friendly and most of the residents have a stable income. The UAE has a high number of expatriates and in the recent years the cost of living has gone up, affecting the UAE market directly and the expatriates indirectly.
Many people give a lot of excuses as to why they are not saving, albeit a small percentage of their income, however, with a proper savings plan, it is easier for both the local residents as well as the expatriates to make a great financial leap. It is crazy but as many as 75% of expatriates put away nothing for them to go back to when they leave Dubai – do not be one of them. Follow these ten easy tops to saving money in the UAE and you will be going back happy.
The 10 Tips for Saving Money in the UAE
1) Avoid impulse: Ensure you do not buy anything on impulse. Whenever you see something that interests you, keep off for at least a day as you think whether you actually need it or not.
2) Set Saving goals: List down what your goals are in terms of saving and this not only includes the amount that you should save but also the purpose with which you are saving.
3) Prioritize: Make a list of what you need to spend on and ensure you start with the most important needs. This will ensure that only essential items are purchased and the rest of the money goes to saving. Those items that are non-essential can be left out or spared for another day.
4) Create standing orders: You can set standing orders for your account so that a percentage of your income is deducted and sent straight to your savings account each month. This ensures that you only remain with an amount that you require each month and saves you from the temptation of overspending.
5) Make a budget: Establishing a personal budget is one of the most important strategies of saving as it helps you to monitor as well as balance both your income and expenses.
6) Manage your insurance: Choose inexpensive insurance plans for your home or car , and insure your assets on short term. This will help you to avoid spending on assets that are losing value, thus saving a great deal.
7) Check out for discounts: Take advantage of discounted items and get them at a lower price. These may be home appliances, meals or any other products and services.
8) Avoid bouncing cheques: whenever you are using cheques, ensure you have enough cash in your account to avoid paying extra charges for bouncing cheques. Also keep in mind bouncing a cheque in the UAE is a criminal offense, you may well end up in jail.
9) Controlling Debts: credit card debts are the most common and heaviest debts that most consumers end into. In order to succeed in saving money in the UAE, ensure you pay off any outstanding credit card debts every end of the month to avoid accumulation of unnecessary debts. Certain debts such as mortgages can never be paid at once but it is advisable not to accumulate any more debts as this translates to higher interests which would have been used for something else.
10) Putting in more effort: It is vital to make a conscious decision to save since the willingness to save is the basis upon which your entire savings plan lies. This decision can be made through regulating your spending habits and trying to make only considered purchases. Following these ten points should help you when saving money in the UAE.