We all have a natural tendency to save. This tendency is magnified in a place like UAE, a consumer's paradise. Just one glance at Dubai's fancy shopping areas will make you giddy. Congratulations to parents who have added the outrageous school fees to their list of expenses.
So already we don’t have much to save and therefore the little that we do, we find ourselves spending mindlessly at the various magnificent malls that we can’t seem to get enough of. Advertisements are a great reason to keep upgrading. As a result, we always want the most expensive, best-looking, and largest items.
We shouldn't succumb to these impulses and instead, look for ways on how to save money in UAE. This post will be very helpful if you're looking for these ways.
Here are some ways to save money in UAE
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It doesn't matter how big or small you commence, as long as it is done. Start with five percent if saving 10% seems daunting. 95% of your income should be enough to sustain you. You should save consistently even before you pay your monthly debts and bills. You can gradually increase your savings rate by finding a way to do this. You should aim to invest between 15 and 20 percent of your savings into an investment fund. It is important to start saving now and invest regularly.
Pay yourself first
Split the money and you will be at the top of the line as soon as your payment is received. You can save money for your retirement by paying yourself first. You can set aside a portion of your monthly salary to be used for personal or weekly expenses. Splits are possible. You could do 50/50, 60/40, or 70/30. Or you can save 80/20 percent for expenses/savings. It is important to set a personal goal and keep it up.
Two bank accounts
One account should be used for expenses, and another for savings. This is a simple and effective solution. This allows you to better track your money. This will allow you to not only physically place your money in two places but also track how much you've saved and spent. Ideally, you ought to have more in your savings than in your travel and entertainment account.