In the UAE this is magnified more so when you walk around any of its fancy shopping destinations.Advertisements give us all the more reason to upgrade and we constantly want the latest, fanciest, biggest and priciest. But stop and think for a moment. Rationalise.Once you’ve got a handle on that, we’re on our way to saving money to take home. Here are some money-saving tips we hope you’ll find helpful.1.
Whether you start big or small, it doesn’t really matter - as long as you start. If you can’t save 10 per cent of your income, begin with just 5 per cent and live off the remaining 95 per cent. Save consistently, even before you pay your monthly bills and debts. Find a way to gradually increase your savings rate to 6 per cent, 7 per cent, 10 per cent, if not more.
Ideally, you should put aside 15 to 20 per cent of your savings in an investment fund. What’s important is that you start now, and get into the habit of saving and investing.2. As soon as you are paid, split the money and put yourself on top of the queue. By paying yourself first, you get the satisfaction of saving something for a rainy day (or your retirement). If your salary gets deposited each month into your bank account, put some of that into a separate account which you won’t use for weekly groceries or personal expenses.
You can do a split; say 50/50, 60/40, 70/30, 80/20 per cent for expenses/savings, whichever suits you best. What’s important is that you set a personal target of paying yourself first — and stick to it. What a typical budget pie shows, allocating a portion for savings.3. Have one account for your expenses and have another one for your savings.
It's a simple solution, and it’s rather helpful. Splitting the two allows you to keep tabs on your money better. This allows you not only to physically put your money in two places, but know the amount of money you have spent and saved up. Ideally, you should have more in your savings than in your expense account.4. 1 million) by the time you retire, according to “Way to Wealth” author Brian Tracy. Even someone who earns a minimum wage can be a millionaire if he or she consistently saves over the course of his lifetime.
Learn how mutual funds, exchange traded funds, trust funds, insurance, 401(k) or "forced savings" plan, and personal investments.5. Use a banking app on your phone (if it’s available) where you get a bigger view of your money, keep tabs of your balances, check your transaction history and transfer money in between accounts. Or you can go old school and write it in a book.
What’s important is to keep track of how much is going in and going out. Keep track of how much goes where. This allows you to see if you’re overspending, so you can cut back on things and save money.6. Whether you use a box, a can or a piggy bank, saving loose change is an amazing way to earn extra money. This practice guards against your impulse to buy, especially from stores that still take cash-only payments. If you look into your wallet and know there’s money there, your instinct will tell you to spend it.
So if you do find yourself without any cash when you walk into a store, it cuts your impulse to spend. You can’t spend what you don’t have.8. Converting everything you buy or want to buy into your home currency is silly. We’re not earning in pounds or dollars, so we shouldn’t be thinking in those currencies. Besides different countries have different prices depending on various economic factors.
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