6 Quick Tips to Manage Personal Finance in UAE

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If you have just graduated and got yourself a job then you are probably new to the concept of budgeting. Planning or living without a proper budget is the same as traveling the globe without a map. Though getting a new job can be an exciting affair, it is very important to keep track of all the responsibilities in the way. A common mistake that most of us make is not managing our finances, which in the future often leads to financial instability.

Keeping the importance of budgeting as the central idea, today we’ll talk about how to budget your life or your finances in the UAE efficiently so that you can secure your future.

1.   Savings Bank Account: A Must Have

Once you start getting paid, it is very important to have a savings bank account. Keeping a part of your earnings aside every month not only forms a healthy habit of saving but also allows you to have some additional cash for times of emergency. When you start saving early you can grow your savings over time that will act as a financial cushion for you and your loved ones. Starting young with a small amount will give you ample time to work for your goals, and grow your savings. 

2.   Break Down Your Salary

Diving up your salary every month will help you to accumulate your savings. Initially, you can start small by keeping aside 10% of your earnings. Further, analyze your spending habits and gradually start adding 15% then 20% and so on. Doing this will allow you to accumulate a large chunk of your salary towards regular savings over the time. 

3.   Set Up Realistic Financial Targets

Setting up financial targets helps you to strategically plan and achieve your financial goals in life. With pre-defined targets, you can track your progress and work out an effective plan to budget your finances. 

4.   Budget Your Life

Realizing the importance of the ratio between your total earnings and total expenses is very crucial. Allocating your funds for essentials like electricity, rent, transportation, and food helps an individual to determine expenses. However, there are months that may turn expensive than others. The best way to stick to a budget is spending smart. 

5.   Manage Your Debts

Credit cards and personal loans in UAE can affect your budget if used irresponsibly. Interest rates applicable to credit cards are quite high in the UAE. If you have a personal loan in the Dubai then it is crucial to work out a systematic repayment plan that will help you pay your EMIs easily. Best Personal loans in UAE are easy to obtain and therefore quite popular. However, with credit card bills or personal loan EMIs in place, you should prevent overspending and budget your expenses. 

6.   Be Prepared with a Backup Plan

Life is uncertain! No matter how well we prepare for the future; something(s) is always beyond our control. Having emergency funds ready reduces ambiguity and safeguards your family from financial hardships. Types of insurance such as life or term insurance can serve as a backup plan by providing coverage in case of premature demise of the breadwinner of the family. 

Summing It Up

Keeping a firm control of your spending habits and planning your expenditure is a step forward towards financial planning. A budget plan accelerates your pace of achieving your long term and short term goals. The majority of wealthy people have grown their savings by sticking to a strict budget plan.

In line with this, the responsible use of credit cards and making timely repayments of your personal loan in the UAE reduce the risk of debt accumulation that can affect your budget vigorously. A budget plan not only helps you financially but also takes away a lot of mental stress. So, start planning today!

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