User Comments - ArabianBusiness.com

74% of UAE residents do not save regularly

by This email address is being protected from spam bots, you need Javascript enabled to view it on Tuesday, 28 September 2010

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Posted on Saturday, 2 October 2010

Saving and Expectations Pay Rise

Posted by The Grand Master at 14:44 UAE time

As rightfully sandimdrt wrote: saving is a habit and any one should establish in his mind that he has a debt to payback to his/her saving account. Without such mindset no one will ever be able to save.
My personal experience is for the first 8 years in Dubai is I spent all what I earn, had a loan, overdraft, and a huge credit limit on my credit card... savings was just a dream and I lived for my day. After personal restructuring:

1) I canceled my credit card and I have a new one with a credit limit of 50% of my basic salary (allowances are excluded... as these usually get paid in full for what it is intended for).
2) I established 3 debts I have to pay back. First is give on monthly basis an amount of cash to my wife to save in her own way, second a bank account without an ATM card nor cheque book, and third ensuring all coins are taken back from any transaction and saved in my black box at home on daily basis along with all banks notes less than 100 left in my wallet at the end of the day.

Such strategy paid very well when I lost my job after a huge dispute with my employer at the wrong time (early 2008). All of the above helped me to live for 1 year without any income at a very respectful level without a bank calling me asking for loan/credit card repayment and no cheque bounced back. More importantly I paid the full hospital bill for our 3rd child who came to life in the mid of my personal crises...thanks to Allah.

For those who link their saving plans to a future salary increase...don't do. Reasons being is you can wait for ever in such dynamic economy. Any one future plans shouldn't be based on hedging on future event.. it should consider only what resources you have today and assumes that it will continue in the near future.

The downturn in the economy made many employers believe that they are paying is more than enough to cover the cost of living after considering sharp drop in the prices of main basic needs (which is true for housing only but school fees and foods are still high).

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Posted on Thursday, 30 September 2010

I'd love to save...

Posted by Oz at 08:23 UAE time

...if only the company paid for my kid's schooling too. And the rent.

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Posted on Wednesday, 29 September 2010

Savings....

Posted by Punky Brewster at 10:21 UAE time

The MAIN reason behind the poll showing the WESTERN Expats saving MORE than the ASIAN Expats is the salary package. Think about it - Western Expats get a lot of EXTRA benefits, like housing, schooling, cars, etc... (not all though), and yet, a lot of ASIAN Expats have to do with lower salary, thanks to their background. They also have to deal with salary cuts, non-payment at times, and feeding families back in their home countries. Oh, and lets not forget that a LOT of ASIAN Expats prob have to pay for their visa formalities too, I might add. If this POLL ain't skewed, then what is...??!!

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Do not save!

Posted by sandimdrt at 07:46 UAE time

Savings is a habit, a discipline and has little to do with how much one earns. It’s about resisting the temptation to spend now and pay later, focusing on financial security instead of living for the day and being concerned with what others will say! For some reason expats who come to work in the GCC think they are on a paid vacation. So can we have our cake and eat it too|? Most certainly the golden rule Pay Yourself First! Yes, 10% of your salary cut at source and sent to an account perhaps in your home country basically in a place which is not easily accessible. You still have 90% to spend!

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Posted on Tuesday, 28 September 2010

Money grows on the Tree of Patience

Posted by Ryan at 19:41 UAE time

Whats the point in spending so many years in this country without saving a penny for a dark day. Remember that as your savings increase you will be able to think beyond the daily expenses and pay for larger and important things in this unpredictable life, like a holiday, an emergency, children's higher education without going into debts, retirement etc.

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Great Initiative

Posted by Ali at 17:37 UAE time

A really responsible initiative by National Bonds - these are the stats that will show how badly we need to change our culture of spending. Interesting how we have come out of a massive economic crisis and people STILL haven't learned to save thier money!

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Optomistic

Posted by JB at 16:07 UAE time

I think the 48% who expect their income to increase in the next 6-12 months are being "optimistically optimistic". The economy has still some way to go to be steady and employers certainly won't want to be increasing their overheads for at least another year once some stability has returned.

Even if income does increase it's the outgoings people need to keep an eye on and this has never decreased in the 16 years I've lived here.!