Living in UAE, if you have always dreamt of attaining financial success and if you are still thinking about how the fortunate ones spend their vast amounts of money, then you must also be looking for some tips to join the high net worth club. You must be looking at people and their lifestyle to earn tips and tricks to become like them. But let us tell you that the rich ones do not keep their cash hidden under mattresses or let their money just sitting in their non-interest bearing bank accounts.
Researches and studies done in the past two decades point out that the UAE has witnessed the population of the ultrarich increase significantly. The study also revealed that rich population of UAE, with net assets of Dh3.6 million, plan properly, earn well, and spend wisely.
They do this by planning and its execution, even you can achieve it by following the below mentioned golden tips to get financial success in the UAE:
1. Get yourself a better bank account
In the case, where your bank doesn’t pay you any interest on your savings deposits or is charging you unnecessary fees, then it is probably time to make a shift to some other bank. Go for a bank that offers you perks and advantages on banking with them.
2. Keep the proper track of your expenses
To avoid impulse buying and spending money irresponsibly, it is advisable to use a mobile application that would record and keep track of all your expenses. It will help you categorize your spendings and thus help you find out where you are spending irresponsibly and how money keeps on flowing out of your wallet all the time. Doing this will help you add a lot to your savings. There are many apps in the market which guide people to alter their spending patterns and save more.
3. Control Any Impulse Expenditure
The biggest problem which people face is buying stuff without thinking whether they need it or not. To save yourself from the unnecessary burden at the end of each month and paying huge amounts of credit card bills, it is extremely essential that you keep yourself away from any impulse spending. It can be eating out at expensive places, going online for shopping, etc. By indulging without thinking, you are doing more harm to your bank account and your possibilities of having a bright future. Prohibiting all this would definitely help you save a lot.
4. It pays to own the right cards
If you choose to own a credit card, make sure that your card provider is ideal. This means that you should get privileges as well as discounts or coupons for your spendings. The benefits and charges on the card vary from bank to bank, so it is your job to find out the best credit card provider which works profitably for you, resulting in cutting down your expenses and saving huge money. Credit cardholders can avail a wide range of discounts on dining, entertainment, leisure, travel, etc. Research on the availability of such cards, find out about the zero annual fees that can help you in saving a significant amount of money.
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5. Get acquainted with personal finance
Read as much as you can and acquire as much knowledge as you can on managing personal finances properly. Try and get a consultation from finance experts who are there in UAE. They are really good at their job and they would create a step by step plan for you to take good care of all your finances and money. By doing this you can improve on unnecessary expenditures and save for your future as well.
6. Let your money attract more money
Start investing when you save. Keep aside a fixed amount every month say, Dh370. Do this all your working life. Invest the amount mindfully in a genuine investment option which earns you profit say, 8 per cent – 10 per cent every year. This will make you financially independent and strong. When you retire, you will accumulate a savings of AED 3.7 million, which is 1 million US dollars. If you plan to save Dh5000 each month, then you can make that figure reach a million within no time. This way, you will fulfil your wish of matching steps with the ultra-rich UAE residents.
7. Keep the change
It entirely depends on you whether you go to the old school way and choose a piggy bank or you take a box to store whatever small loose change you have. Do not hesitate to fill that box or piggy bank with 50 fils or even 25 fils. Although it may seem insignificant that time when that box would fill up and when you would round up that money, you will have a few hundred saved with this small tip. This money can also be put in your investment wallet. So basically you are accumulating wealth from that saved a small amount of change.
8. Borrowing money is a vicious circle that lands you in trouble
Remember never to spend the money which does not belong to you. Never borrow money from your parents, siblings and colleagues. Borrowing money is not worth purchasing the thing you want. Additionally, never get stuck in a debt which entangles you for a long time by charging high-interest rates. Instead, under emergency situations, go for a personal loan that charges lesser interest. Although borrowing money from any source is not advisable, so consider it as a complete no-no!
9. Make a retirement plan
It is extremely important for each one of us to secure our future. According to various researches, it has come into light that a major chunk of residents in the UAE is facing the risk of retiring with health issues. Almost 50% of the working population believes that it will be poor health which will make saving for their retirement much more difficult.
Most of the people who work in the UAE feel completely unprepared for retirement because they didn’t start saving early enough. So start early and invest in a retirement plan. Consult your financial planner and fix an investment plan for yourself that will give enough return so that you retire in peace.
Another important point to keep in mind is, never dig into your retirement savings before you retire as it will be the biggest mistake you ever commit. When you withdraw money from your retirement savings you are negating every bit of hard work you did towards saving for your good and healthy future. You may even get penalized for withdrawing early which may put a dent on your financial well being.
When you totally commit yourself towards saving money and then do it by curating an action plan, you will earn a bright future for yourself. You can take the help of a financial tool or planner to invest the money you save then in the shortest of time you will find your bank balance smiling and your net worth also increasing. Although it is no magic and will happen at its own pace, you need to give it your all and get the much sought after financial success.