At times like this, the last thing anyone wants to worry about is money— and not just finances in general, but anything to do with money management best practices. If you can save money in UAE during a crisis, your recovery period will be short.
Every time you spare some money and put it into your saving kit, you are looking out for your future self. Whether you have been in the same financial spot for some time, the following money “Do’s and Don’ts” tips may help you now or in the future.
Saving Money: The Do’s
Cut Costs and Bills if Necessary
One simple way to save money is to reduce unnecessary spending. During a global crisis such as the one we are in, you may need to re-define your “unnecessary.” Start with your home— are there any bare essentials you can part ways with— perhaps certain foods, mortgage, or utilities.
When considering household bills, treat them differently. For instance, it would be wise to pay your credit card bills in full, but it would be understandable to break a few rules under challenging times. So spend the minimum. Meanwhile, if you have loan arrears, request relief from your creditor; work with them to reduce the payments or suspend the payments altogether, temporarily.
Tweak Your Savings Goals
Being able to save is helpful in the long run!
Take the emergency fund, for instance; it involves building up to six months’ worth of living expenses. Again, consider resetting the expectations, at least for some time. Your income stream is bound to change, and you won’t save a fixed amount consistently. You will have to adjust the way you save.
Seek Help from Others and Save Costs
Being in a financial turmoil isn’t something to be embarrassed about. The UAE government and other organizations provide free resources to take advantage, including meal services, food banks, mental health services, and shelter for students, young adults, and seniors. It may feel uncomfortable to ask for help, especially if you have never done this before. However, these services can help you save money.
Saving Money: The Don’ts
If you must use your emergency fund now, determine the amount you need before withdrawing. Also, track your spending to understand your spending behavior. Eventually, you’ll want to save again, and you want the process to be as seamless as possible.
Try to budget with the minimum amount you to require to ensure you don’t deplete all the amount in your emergency fund kit. At the end of the day, we all want to feel financially secure. Some people even feel satisfied or rather pleased when they see several commas in their bank accounts.
Refrain from Using Your Savings Often
Take note of how often you withdraw your savings. You may be charged a lot in withdrawal fee if you transact multiple times a month. If you are having issues with fees, think about why you need more savings— it is vital to be accountable to yourself.