HOW TO START SAVING IN UAE

HI

BASIC RULE :

IF YOU KNOW YOUR SALARY CREDITED EVERY MONTH; YOU MUST ALSO KNOW YOUR EXPENSES DONE EVERY MONTH. 

YOUR SALARY DOES NOT INCREASE BY ITSELF OR GIVE YOU ANY JACKPOT EVERYMONTH - SO BE YOUR EXPENSES

STEP 1 :

ALL REQUIRED IS 2 BANK ACCOUNTS ; ONE WHICH WILL BE YOUR DEFAULT SALRAY TRANSFER ACCOUNT AND OPEN AN CURRENT ACCOUNT WITH A DIFFERENT BANK. CURRENT ACCOUNT YOU WILL HAVE TO MAINTAIN AED;3,000/- AS MINIMUM BALANCE. YOU HAVE COMPLETED THE FIRST STEP TOWARDS ENTERING THE SAVINGS WORLD.

STEP 2 :

START TO WRITE DOWN YOUR DAILY EXPENSES IN A NOTE BOOK. WHILE YOU START TO RECORD THE DAILY EXPENSES TRY TO ALLOCATE 3-4 PAGES FOR ONE MONTH EXPENSE ENTRIES. TRY TO SEGREGATE THE EXPENSES UNDER A NAME LIKE GROCERY, DINING, TEA/COFFEE, LAUNDRY, PETROL ETC. EACH HEADING CAN HAVE 10-15 LINES SPACE TO BE FILLED IN.

ON THE LAST DAY OF THE MONTH SIT WITH THE NOTE BOOK AND TOTAL THE EXPENSES MADE AND YOU WILL DISCOVER SOME STARTLING FACTS ABOUT YOURSELF. I WAS SHOCKED TO SEE MY DINING & LAUNDRY EXPENSES AND THEN I WORKED OUT A PLAN TO REDUCE THEM TO ALMOST TO 1/5 TH NOW AFTER 2 MONTHS.

THIS EXERCISE WILL REFLECT WHAT YOU ARE DOING WITH THE MONEY YOU HAVE IN THE WALLET EVERYDAY. TAKE CUES AND CLUES AND START TO CHANGE YOUR DIRECTION IMMEDIATELY IF POSSIBLE OR AT LEAST TRY TO MINIMISE IT BY 25-30% THE NEXT MONTH.

PLAN AND REDUCE THE UNWANTED EXPENSES ONE BY ONE LIKE WORK ON A PARTICULAR EXPENSE REDUCTION IN JANUARY, THE NEXT EXPENSE IN FEBRUARY SO THAT YOU ARE ALSO AWARE AND BELIEVE ME YOU WILL ENJOY DOING THIS.

SOMETIMES WE WILL MISS OUT RECORDING THE EXPENSES FOR A COUPLE OF TIMES IN A WEEK; DONT STOP HERE, LEAVE A GAP AND CONTINUE RECORDING THE DAILY EXPENSES. THIS IS ACTUALLY A HURDLE YOU WILL OVERCOME OVER A PERIOD OF TIME; YOU CANNOT RECORD 100% EXPENSES DONE BUT YOU WILL END UP RECORDING 90% ON A MONTHLY BASIS WHICH IS JUST FABULOUS.

STEP 3: 

ONCE YOU ARE PERFECT IN YOUR DAILY RECORDINGS; NEXT IS YOU ALLOCATE YOURSELF A FIXED AMOUNT OF MONEY - JUST FOR EXAMPLE

KEEP ASIDE AED: 350 FOR DINING EXPENSES 

KEEP ASIDE AED: 150 FOR LAUNDRY

KEEP ASIDE AED: 250 FOR ENTERTAINMENT

KEEP ASIDE AED: 500 FOR GROCERY

KEEP ASIDE AED: 100 FOR TELEPHONE

TOTAL ALLOCATION MADE IS AED: 1350 FOR THE MONTH.

IN CASE YOUR DINIG EXPENSE INCREASES BY 50 TRY TO REDUCE YOUR ENTERTAINMENT TO 200 ONLY; IF TELEPHONE INCREASES TO 150 TRY TO REDUCE FROM GROCERY EXPENSES.

THE IDEA IS THAT YOU TRY NOT TO EXCEED THE MONTHLY ALLOCATION SOMEHOW. AGAIN IN CASE YOU EXCEED THE MONTHLY ALLOCATED BUDGET; TRY TO REDUCE THE NEXT MONTHS BUDGET BY THE EXCESS SPENT THE PREVIOUS MONTH.

WELL THE ABOVE EXAMPLE IS JUST AN ILLUSTRATION AND YOU CAN DEVELOP YOUR OWN PLAN WITH MORE CLARITY.

STEP 4:

THERE ARE TWO WAYS OF SAVING 

1.DIRECT SAVING 

2.IN-DIRECT SAVING

 (TO BE CONTINUED)

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Posted by
omms
On Thursday, 19 September 2013 at 11:53 a.m.
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