A penny saved is a penny earned.
This famous quote by Benjamin Franklin no longer holds true, not atleast for Expats in UAE.
A friend of mine, once said that
"A penny saved is a penny spent else where".
At that time this passed on as a funny quote, but later I pondered over this statement, and understood its depth and reality...
Most expats are Short Term Savers, saving their money, actively till it reaches a certain threshold.
Once it reaches their mental threshold, they are compelled to do something with their money, usually spending most of it and if something is left, they might invest...
Yes! "Short term savers", that's what I call them.
The usual threshold is about 3 months to 6 months of salary.
The moment the savings reaches this mark, they get the urge to do some thing with the money...
Once it is spent, the savings process starts all over again...
Even though, such people save money throughout their life, they are hardly able to do something significant...
Investing for a long term goal like financial independence, property investment, children's education is a better solution for this issue...
Investing not only helps you accumulate capital, it also helps you protect your savings from inflation and currency fluctuation...
Step 1 : Choose a regular savings plan investing in international mutual funds for a period of 5 to 7 years.
Step 2 : Invest your savings aggressively into such plan.
Step 3 : Be involved in putting together your investment strategy with your financial advisor, even if you do not understand much in the beginning.
The more you involve yourself, the more you learn and the better you get at investing...
The Internet is full of valuable information about investing, spend some time and acquire the required knowledge.
Step 4: Monitor your investment on a regular basis and review the investment strategy with your financial advisor atleast once in 6 months..
Step 5 : Watch your wealth building.
It is ideal for individuals...
