10 ways you can make the most of your monthly income

Tax-free income may not mean much unless you spend carefully

Expats often find themselves struggling to make ends meet, let alone save for retirement. Tax-free income may not always leave you enough to save unless you know how to spend carefully. Here are 10 ways to budget your monthly income.

Regular savings

Transfer a portion of your salary to a savings account as soon you receive your income. Most banks have the option to automatically transfer a set figure of your income into a saving scheme within your account. Save at least 10 per cent of your income before you start any of your expenses for the month.

Rent

At least 40 per cent of our income in Dubai goes towards rent and utilities. If you are paying more than this, you might need to reconsider your living arrangements. Studios and one-bedroom apartments are the most common living choices for smaller families.

Transport

Taking your car everywhere might not be the best option. The metro connects most areas of the city and this is often a sensible choice once you compare the fuel, parking and time costs. If you use the car a lot, consider taking parking cards.

Credit cards

You do not need to have more than one credit card. Use cash or your debit cards wherever possible. If you use a credit card solely for regular shopping like groceries, automate complete repayment in the same month. Request from your bank a lifetime-free credit card. Do not use your credit card for purchases below Dh1,000.

Eat at home

RTA

Staying healthy on a tight budget can be done with right choices. Cook dinner at home and take the leftovers for lunch the following day. Expat bachelors can opt for pre-set meals where a hotel or restaurant offers breakfast and lunch meals daily for discounted monthly rates. The best time to cook is the weekend, keeping food frozen which can then be heated up as and when required during the week.

Dining out

With the variety of dining options available in Dubai, it is easy to order in or dine out every single day. Spending more than 10 per cent of your income on eating out is not a wise option. Dine out once in a fortnight or once in a week.

Grocery shopping

A lot of grocery shops and supermarkets have offers running at some time or another. Get a shopping card for your nearest supermarket which is free and will give you access to great deals. Buy your fish from local fish markets rather than supermarkets to get fresh produce at great rates.

You can cover your food shopping expenses with not more than 15 per cent of your monthly income.

Air tickets

Most ticketing websites offer seasonal promotions or limited deals which you can take advantage of in case you don’t have a fixed vacation plan.

Try online booking as much as possible and scour for coupon codes that can take up to 15 per cent off your total bill. While booking flights, check all merchant sites as well as official airline sites. Plan your vacations well in advance and fly on non-peak days of the week.

School fees

Fees can range from Dh12,000 to more than Dh100,000 on an annual basis. If not covered by employers, paying above 15 per cent of your monthly income on school fees can cripple you in the long run.

Impulse shopping

Making every purchase with a question of needing versus wanting can help control impulse shopping. An occasional shopping treat is an indulgence everyone deserves, but do not whip out your credit card for un-planned purchases.

Always walk into any store or shop with an idea of what you intend to buy.