HERE’S WHAT YOU CAN DO TO STAY AFLOAT AMID PANDEMIC

Take time to cook at home

Many opportunities will come out of this situation. Make a business plan and study the market well.”

Salah S. Al Halyan | Finance expert

A significant proportion of UAE residents have taken a hit to their income. But with opportunities for spending also being limited now, people are being advised to adjust to the new circumstances and be frugal.

“Now, most people prefer to cook at home, both for financial and hygiene reasons. Most Emirati families earlier depended on help for domestic chores, such as a maid or nanny. Forced to stay home, they have become selfsufficient. This will trigger a change in lifestyle for most Emirati as well as affluent expat families,” Al Halyan said.

Watch that rent

The financial expert assured residents facing a salary cut that if it doesn’t affect rent payment, then they needn’t be worried. “Rent accounts for the biggest chunk of your income. Your entertainment expenses have reduced significantly. So, if you can manage to live within limited means in these emergency situations, a salary cut is not a cause for much concern,” he told Gulf News.

Opportunities galore for novice investors

The Covid-19 outbreak has made people with savings more smart in their investment decisions. The current situation presents a good opportunity for amateur investors to test the waters. “For instance, if you are an expat renting property, this is a good time to consider buying the asset. Put in your savings as a down payment and then use a long-term mortgage to fund it because it works out cheaper in the long run than paying rent. Don’t buy something very expensive, instead buy an affordable property and mortgage it for 15 years. If your financial situation goes awry, you can always rent it out to pay the mortgage,” suggested Al Halyan.

The investment expert also warned people to read extensively or consult with a financial adviser before investing in asset classes like shares or bitcoins. You have to be very careful about which companies’ shares you invest in, he observed.

“Most people in the UAE live without any objectives and financial goals. If you have children, start planning your ward’s university education. Plan your post-retirement income.”