LIVING in the UAE, planning to move to the UAE to work, or setting up a business has many advantages. Safety, efficient public services, a vibrant private sector, ease-of-setting up a business, a shoppers’ paradise, entertainment, international hospitality; in many cases UAE, and Dubai in particular, sets the tone of many superlatives, and has many Guinness Book of world records! Choice and availability of goods and services from all over the world make this place a ‘veritable utopia’. However, like in any dreamlike sequence, we wake up to reality which is the cost associated with living, and working, in this place of opportunity.
There are no freebies in life and one must not live like the proverbial ostrich with its head buried in the sands of the UAE. While opportunities abound, and we enjoy the life many around the world envy, what are we doing with our salaries, earnings, income? The incentives to spend abound and ‘ease of payments’ schemes mushrooming everywhere have many hooked on a self-indulgent lifestyle that is totally unsustainable. Many feel they are actually depriving themselves by deferring purchases, cutting down on entertainment, resisting the urge of retail therapy, living on credit cards and instalment schemes!
The cost of living
The battle is the cost of living! Yes, the ever-rising monthly recurring expenses include food, beverages, toiletries, routine household maintenance: Weekly; transport/petrol: Weekly; clothes, footwear grooming/skincare/gym: Monthly; housing, water, electricity, gas and other fuels: Monthly; telecommunications: Monthly; recreation and culture: Monthly; restaurants and hotels: Monthly; education: Quarterly/Annually; health: Quarterly/Annually; rent: Quarterly /Annually; and miscellaneous goods and services Most of us are familiar with the acronym- SMART Specific Measurable Attainable Realistic Time-bound. Right? Yet many choose not to apply this to their personal financial wellbeing. Instead for many here in the UAE, SMART is Short sighted, Measureless, Absurd, Ridiculous, Tardy! Immediate gratification is so popular, mall therapy is so alleviating.
Can’t pay in full? Don’t worry. We got that sorted out. Download app, fill in your debit/credit card details, we won’t let you feel the pinch; just small ‘ouches’ every month. These ‘facilities’ can be addictive! One soon finds out that they are paying for a long time for somethings that might have lost their charm and usefulness etc. and, most important, the cash in the bank is still being depleted.
Enjoy and save
So, how can we manage to enjoy, indulge, splurge, and still save our hard-earned money? Is it really possible? For some yes, for the majority it amounts to seeming deprivation, depression and more! So let me suggest going on a financial diet. Just like any diet, there are things you cut out, things you have less off and you establish a systematic time-bound routine to achieve your objective.
So, for our health and quality of life, we need to – reduce weight, bring down cholesterol, fat, sugar and creatinine etc. For our financial health it’s pretty simple straightforward – reduce spending, reduce debt on credit card, pay off loans. Pay yourself First! Apply the financial diet formula: Save Share Spend Save – automate at source i.e.,
standing order with your bank. Minimum 10 per cent taken away from you at source. Invest- Let your money work for you. Start a regular systematic savings plan. You may feel the pinch, but it is better than the ‘ouch’ of debt repayment. Be Smart. Save, then let your money work for you! Share, spend and enjoy Life in a first-class place!