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 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.
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.
Author, Blogger & Independent Financial Advisor. My goal is to give you actionable tools for creating passive income and building wealth. More than 10,000 expats have already used my ideas to jumpstart their journey towards financial independence. Connect with me to start yours...