Dream of Financial Success – It is the driving force which attracts people from all over the globe to the dream land – The United Arab Emirates. Though formed only in 1971, the UAE has always been a place for many and others have followed suit seeing the success of their predecessors.
The tax free environment in the country, among many other factors, helped the expat population to save money and have a better lifestyle for them and their family.
UAE is also a land of beautiful beaches, night & social life. As a vibrant and true international city, it encompasses all the good, bad and ugly of any large city. The experience of living and working in the UAE can be quite enjoyable and at the same time the various enjoyment avenues could distract an expat employee from his ultimate goal of achieving financial success and security and instead might lead to financial disaster. The famous quote by Benjamin Franklin “If you fail to plan, you are planning to fail” holds true in this country of opportunities.
To help you stay on top and being in control below are the 8 basic rules to be followed if you do not want to leave the UAE broke:
- Have an emergency fund of not less than 3-6 months of your expenses. Keep that in a bank in a fixed deposit or even save it as Gold coins. This is to be used in case you lose your job. It’s not advisable to use it for any other emergency.
- Protect all your assets: Health insurance, income protection in case of any critical illness or disability, life insurance, personal accident, fire/content insurance for your house etc. Foundation of financial planning is protection and for protection the best product available to you is insurance.
- Use of credit cards should be minimized or if possible avoided if you can’t manage it. Do not carry credit cards when you go for shopping as it will give you the sense of unrealistic purchasing power.
- Start saving for Retirement today if you haven’t already started. Take the expert opinion of a financial consultant who can help you beat inflation.
- Always spend less than what you earn and prepare a monthly budget and stick to the budget.
- Try to save at least 15% to 30% of your salary depending on your income and lifestyle.
- Invest regularly and consider saving as your first expenditure. Try to invest long term and not short term. Never stop your regular investments especially in bear markets.
- Check and review your portfolio once a year. Spend at least 2 hours out of 365 days to review and monitor your progress. Have an advisor. The reward is worth the cost.
At Petra our goal is to provide utmost clarity especially when choosing to:
- Plan your retirement. Economic freedom when you retire
- Plan your children’s higher education which can provide them a good career
- Help protect your loved one’s in case of early death
- Protect your income in case of Disability or Serious illness
- Protect your business
Helping people bring clarity to their lives…….
RAMZI GHURANI
Managing Partner