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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