In this edition we delve into saving for retirement, irregular expenses, and how to cope with rising living costs to help you stay on top of your financial game.
✅ How much money 💰 do you want to save for retirement?
Or how much do you need to buy a house, the luxury car you wished to buy, in 3 years?
These are some examples of financial goals.
So, why do you need a financial goal❓
Here are 6 reasons you should have a financial goal:
1. Achieving specific life goals like retiring early, saving for retirement, or traveling the world.
2. Measuring financial progress
3. Having better control over your financial future.
4. Managing financial stress and anxiety.
5. Lowering or avoiding debt
6. Staying prepared for emergencies
✅ Have you noticed that we often end up spending more than expected on festivals or holidays?
While we have a fair knowledge of our fixed monthly expenses - from rent to groceries – we are often unprepared for irregular expenses like holidays, festivals, birthdays, and anniversaries.
So, how do you ensure that the next trip to Paris does not leave you in debt?
Here are 5 steps:
1. Make a list: Make a list of irregular expenses like trips, festivals, and birthdays in the next 6-12 months.
2. Start saving: Create a sinking fund 💰to make small monthly contributions for those expenses.
3. Automate: Set up automatic savings transfer to accumulate funds in a different account.
4. Adjust: Adjust your monthly budget to accommodate your monthly contributions to the sinking fund 💰.
5. Create a buffer: Create a buffer in our budget to ensure that unplanned expenses don’t derail your saving plans.
✅ Did you know Dubai’s rank in the cost of living index rose to 70th 🚀 by June 2024 compared to 138th at the beginning of the year?
Abu Dhabi too reflects the same trend. It now ranks 75th compared to 164th at the beginning of 2024.
As living costs rise in these cities, you may be looking for ways to cut costs.
Try these 8 tried and tested techniques to live a frugal life in the UAE:
1. If you are a singleton living in the UAE, consider sharing accommodation with flatmates to save on rent.
2. Shift to more affordable areas to pay lower rent.
3. Cut back on eating out and food deliveries - start preparing meals at home instead.
4. Use public transportation like the Dubai Metro to save on fuel and maintenance expenses.
5. Look for cheaper or free entertainment options like the Dubai Fountain.
6. Use energy-efficient appliances to lower electricity bills.
7. Utilize free fitness resources like outdoor gyms and community yoga classes.
8. Get a better deal by combining your internet, TV, and phone services with one provider.
✅ What is that one habit you are proud of? 🤔
Waking up early, eating healthy, exercising regularly 🤸 or something else?
Do you know saving money regularly is one of the most rewarding financial habits?
According to a Bayt-YouGov survey, 61% of UAE residents are worried about their post-retirement finances.
One way you can keep financial worries away is by making saving a part of your lifestyle. So, how do we do that?
Explore these 6 tips to build a saving habit:
1️. Pay yourself first: Transfer 10-20% of your pay cheque as soon as you earn it to a separate savings account.
2. Automate saving: Set up an automatic transfer to incorporate savings into your lifestyle.
3️. Budget smart: Incorporate savings into your budget.
4. Start small, think big: Start small and then gradually contribute more to your savings plans.
5️. Reward yourself: Celebrate milestones in your savings journey.
6. Stay consistent: Consistency is the key! 🔑
We hope you found this week's posts helpful and inspiring.
Remember, taking small steps today can lead to big financial achievements in the future.
Don’t forget to stay tuned for next week’s blog, where we’ll continue to explore more ways to enhance your family’s financial well-being.
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