If there’s one thing financial experts all agree on when it comes to getting your money back in order, it’s to save at least six months’ wages in an emergency.
âIt’s important to save for financial security, buy your own home, plan for retirement, build a college fund for your children and for any unforeseen expenses,â says Farid Al Mulla, deputy director of wealth management at Emirates. Islamic. âWhile we encourage clients to save on their first payday, it’s never too late to start saving. The key is to start.
However, for many people, the very idea of ââsaving money for the future, sticking to a budget, and sometimes forgoing that weekend brunch, new gadget, or vacation is difficult for a number of reasons. , they therefore delay putting money aside.
Dubai finance specialist and coach Mile Coady says there are plenty of explanations people give for not saving, but most of them are excuses rather than reasons.
“When someone tells you that they are not saving because they are not earning enough or because prices continue to rise, they are likely to offer a rationalization rather than an explanation for their inertia” , he writes in his blog.
âThe real reasons people don’t save are rarely economic – they are much more likely to be psychological. One of the reasons people don’t save is that they cling to the delusional idea that things will get better somehow – no matter how hard they try. , things will improve, their talents will suddenly be recognized and all their financial worries will disappear. “
It is a common problem. A survey conducted in the United Arab Emirates by global consulting firm Mercer in 2020 found that nearly half of residents delay saving for retirement until their forties and fifties.
But it doesn’t have to be, because there are easy and rewarding ways to save. With Emirates Islamic’s award-winning Kunooz Savings Account, not only do you save, but you also have the chance to win – and win big!
This unique savings account gives account holders the option of driving away in a spectacular Tesla car – six Tesla are up for grabs this quarter. In addition, there is also a grand cash prize of one million Dh, in addition to 50,000 Dh every fortnight.
The Kunooz savings account is a great motivator for people to start saving, says Al Mulla.
âThe account distributes millions of prizes each year to encourage and reward savers. Hundreds of people have won luxury cars, apartments, gold and cash prizes in the past. So not only do they accumulate money, but their savings could be life changing if they win big. We have more exciting prices slated for 2022. “
Financial advisers encourage people to watch their spending to be better savers – recommending a minimum saving of 20% or more of income, spending 50% on necessities like food, rent, utilities and transportation, and spending the remaining 30% on wants and desires such as hobbies, clothing, and travel.
For those with no savings, Al Mulla has some practical advice.
âEvery dirham you save will encourage you to save more. When you save your first Dh1,000, then you should aim for Dh5,000, then Dh 10,000, Dh 100,000, one million and so on. When you see your balances increase, you will be encouraged to save more.
Top financial writers all agree that the right financial decisions made today can dramatically affect not only a person’s life, but also their legacy.
Renowned American money expert Dave Ramsey – author of five New York Times bestselling books including The Total Money Makeover – thinks it’s also important to know that your decisions aren’t just about you.
âYou lay the foundation for your entire family tree. If you can successfully build wealth, that wealth becomes a solid foundation for your family to build on, âhe wrote.
âMaking smart financial choices gives your children – and their children – an example to live on. “
To learn more, visit Emiratesislamic.ae
This content is sourced from Reach by Gulf News, which is GN Media’s branded content team.