Expat’s Finances - Too Much Month at the End of Money?

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29-Jul-2012 16:44:57
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Expat’s Finances - Too Much Month at the End of Money?

UAE and in particular, Dubai is a great place to live and work in.

Expats come here for the tax-free income, safety and the comfortable lifestyle. 

Let's look at the story of John, an expat who came to UAE to earn more, save more and become financially independent at an early age of 50.

John's Story

JHappy family going on holidays and getting on the airplaneohn came to the UAE in 2010 to work for a Multinational Company. He came here with a time horizon of 2 – 5 years, but now John and his family call Dubai their home and plan to live here for at least 15 - 20 years.

In the initial few months, John was frugal and had a goal to save more than 30 % of his salary, which he did for a few months.

As time passed, he slowly started to upgrade his lifestyle. He bought a big home, luxury furniture and a bigger car.

John's family has grown as well. He now has two kids who have just started school, and his wife Maria is now a full-time Mom.

While John and his family are having a good lifestyle, he finds it difficult to save and invest for their future.

In fact, he finds it challenging to manage his expenses more than once every year.

Expat’s Finances - Too Much Month at the End of Money?

While John is quite successful at his work and earns a decent bonus every year, he and Maria are always worried about their future.

At the beginning of every month, John and Maria list out all the mandatory expenses and decide to save at least 15 % of income.

They fail at this every month, as they give in to the temptation of shopping, debt payments, eating out and travel.

Too Much Month at the End of Money?

 

How can all this change?

How can John and several expat families have more money at the end of the month, instead of "Too Much Month At The End Of Money"?

If you are wondering, that this story looks like yours and if you too have more month at the end of the money, you are not alone, there are several Expat families like John's who end up borrowing on Credit cards or Personal loans, to make ends meet.

How can John and several expat families have more money at the end of the month, instead of "More Month At The End Of Money"?

The first step towards "More Money At The End Of The Month" is to start saving at least 3.00% of your total household income on the same day when your salary is credited.  You must setup an auto debit to transfer this money into an Esaver/ActiveSaver account / Savings Plan or National Bonds.

Automating the process will help you remain committed to the savings goal. 

Double the savings every year till it reaches 30 % of your salary, and maintain it at the 30 % of salary level till your retirement age.

Years John’s Household Income Savings % Savings Amount Savings Cumulative @ 5 % return
2012 –2013 AED 450,000 3% AED13,500 AED 14,175.00
2013 –2014 AED 472,500 6% AED 28,350 AED 44,651.25
2014 –2015 AED 496,125 12% AED 59,535 AED 109,395.56
2015 –2016 AED 520,931 24% AED 125,023 AED 246,140.02
2016 –2017 AED 546,977 30% AED 164,093 AED430,745.03
2017 –2018 AED 574,326 30% AED 172,298 AED 633,195.19
2018 –2019 AED603,043 30% AED 180,912 AED 854,813.51
2019– 2020 AED 633,195 30% AED 189,958 AED1,097,010.67


Call me today on +97150-2285405 to find out how soon you can be a millionaire and have more money at the end of the month.

If John follows this savings pattern and invests the savings wisely, he can become a millionaire by 2020. If John can do it, you also can do it.

Click Here to Arrange a Free Consultation

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