ASK THE EX­PERTS

Ad­vice on well-be­ing, health, fi­nance and ed­u­ca­tion

Friday - - Grooming -

I’M UN­ABLE TO SAVE ANY OF MY SALARY

Q I am a young bach­e­lor. My monthly salary is Dh12,000 but by the end of the month I have lit­tle left over to save. Any guid­ance on how to man­age my money?

AFor a man on his own Dh12,000 is a de­cent liv­ing in Dubai. Learn­ing to be fi­nan­cially savvy can take a while, but it’s ba­sic and sim­ple man­age­ment skills and, once learnt, can help you man­age fi­nances. Your mind­set is the big­gest fac­tor, so to make progress, you first need to be­lieve that it can be done.

To start with, do a fi­nan­cial as­sess­ment – scru­ti­nise all spend­ing, big and small, over a year, and pri­ori­tise your re­spon­si­bil­i­ties by mark­ing what’s im­por­tant and cut­ting out what you can’t af­ford. RASHI CHOWDHARY As a rule of thumb, al­ways fol­low the 50/30/20 for­mula. This means as­sign 50 per cent of your in­come to your needs, 30 per cent to your wants and 20 per cent to your sav­ings. This helps you to find the right bal­ance, so that you al­ways have enough to pay the bills, have some fun, and save for the fu­ture too.

Be­fore spend­ing, al­ways ask your­self a se­ries of ques­tions. Do I ac­tu­ally need this? Am I over­spend­ing, or can I save some money with­out con­ced­ing on what I want from a par­tic­u­lar ser­vice or prod­uct?

When out shop­ping, it’s al­ways bet­ter to pre­pare a list and stick to it, so you don’t end up with un­nec­es­sary items. If you are in the habit of us­ing credit cards for your pur­chases, try switch­ing to cash, you’ll find it will re­duce your spend­ing. Also, spend money to build your fu­ture. Put any ex­cess money into long-term in­vest­ment schemes that, over time, will build you more cap­i­tal.

Once you have a fam­ily, plan­ning sav­ings be­comes slightly more de­mand­ing. It may seem stren­u­ous to keep think­ing about sav­ing, but it’s eas­ier if you set a sav­ings ob­jec­tive.

Cre­at­ing more rev­enue chan­nels by set­ting apart your ex­tra time and us­ing your skills could add fur­ther mon­e­tary ben­e­fit, and would cre­ate a con­struc­tive mind­set to­wards your fi­nan­cial goal. Tak­ing the time to un­der­stand how much you’re spend­ing and where your money is go­ing can cer­tainly help you to ac­quire a healthy fi­nan­cial habit that en­ables you to man­age your money in a health­ier way, and will pay off in the long run. DHIREN GUPTA

is a Dubai-based fi­nance and real estate ad­viser

70 is a nu­tri­tion­ist, di­a­betes ed­u­ca­tor and cre­ator of The Pro­tein Bake Shop

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.