It should be everyone’s personal goal to save money - be it for a retirement plan, investment or an emergency fund.
This goes especially for the working-class citizens and people of the UAE. According to a report, most people in the country as well as in ten other fast-growing economies tend to live in the now rather than think about the future. Although people regard financial security as a critical factor in the quality of life and happiness, they still find it hard or challenging to set aside money for the rainy days.
In the UAE, the Wealth Expectancy Report by Standard Chartered in 2019 published that respondents tend to focus on short- and near-term financial goals. Some of the reasons raised for the inability to save is that citizens believe that they don’t earn much or that the money they set aside won’t add up to much.
We’re here to break this mentality and rounded up seven good money habits you should adopt this year!
1. Start early. Start now!
Money professionals believe that there is no time like the present to start saving. Begin early on in your life and define your lifestyle. Open a bank account and start to save even for your little ones and they will thank you in the future for saving them millions.
2. Prioritize Saving.
Working professionals should change their mindset to paying themselves first through saving, rather than spending. Initially take your slice off the pie and you wouldn’t have to worry mixing your savings with your spending funds.
3. Set a Budget.
Many people are guilty of this. Think of it like a map, write down all your fixed costs to plan monthly expenses. List all your wants and needs to gain more perspective and financial balance which in the end will take you back to your set priorities.
4. Little things add up.
Whether it’s spending on material things or placing a dirham in your moneybox, these small acts add up. It is important to be mindful about the things that trigger you to either spend or save. Focus on the end goal and don’t forget to celebrate.
5. Celebrate the little things.
Chunk your major goals into smaller milestones and it will give you a sense of fulfillment and accomplishment. Even the little things should be celebrated in your journey to financial security and freedom.
6. Have an Emergency Fund.
Money experts have advised that it is ideal to set aside three months’ worth of your salary into an emergency fund. Life is as uncertain as it can get – people lose jobs, face medical emergencies or require home or car repairs. Always be prepared and independent in life’s circumstances.
7. Choose your mode of saving.
Opening a savings account in the UAE, especially in Dubai is hassle-free. There is a variety of banks across the country offering great deals and good profit rates. You can also find a bank that does not require a minimum maintaining balance. Easy!
Money saved always has its benefits, so start early and keep educating yourself on achieveing financial security.