DUBAI 27 May 2018: In line with the UAE’s vision to foster a culture of savings among residents, leading investment company National Bonds is encouraging UAE residents to confront saving challenges head-on.
The firm is calling on members of the public to open up about the challenges they face when it comes to savings and seek the answers they need to achieve their financial goals.
If you have a burning question for our resident doctor, send it to: SavingsDoctor@nationalbonds.ae.
Q: Between all the Ramadan festivities, my husband and I attempt to budget but often end up over-spending – way more than in other months of the year. How can we make the most of Ramadan with our family and friends, while still putting saving first?
A: The month of Ramadan is a time of devotion, togetherness, and generosity. This means countless iftars and suhoors with family and friends, as well as gift giving and receiving.
During Ramadan, we are often so caught up with giving to everyone around us, we forget to give back to ourselves by prioritising saving for a comfortable future for ourselves and our families.
In fact, many people feel that they overspend during Ramadan, which means saving is placed on the back-burner. However, it is possible to cut back on spending and start saving by following the tips below.
1. Remember to pay yourself first
Take some time for financial planning during Ramadan. One way to ensure you save is to ‘pay yourself first’ – which means that, upon receiving your salary, you separate your rent, bills, utilities and any other fees, put aside a set amount of your salary as savings (ideally between 10 – 20%), and then the remaining amount is disposable income.
2. Make sure your savings account works for you
Savings accounts are a great way to help you accumulate money over time. Open a savings account where a set amount of money is automatically transferred over from your current account. You can also choose from different plans within your account to help you achieve your savings goals. That way, you can personalise your savings journey.
3. Shop wisely
Make the most of Ramadan offers and deals when grocery shopping. Buy local products whenever possible, look for non-perishable items in bulk and don’t forget to use your coupons and vouchers!
4. Gather around the dinner table
Host a home-cooked, hearty meal with your closest friends and family. While there is no shortage of iftar options across the UAE, there is something special about bringing the family together around the dining table to celebrate the spirit of Ramadan. Plus, dining in can be a more affordable option, without sacrificing the fun!
5. Speak to a financial planner
While simple lifestyle changes go a long way, financial planning is key as the UAE comes together to celebrate virtues such as will power and integrity. Part of that is knowing that if you are committed to saving, then you can turn to a financial advisor who is committed to helping you.
While many feel that saving during Ramadan is a challenge, there are several ways to ensure that you stay on track with your financial goals. The holy month is all the more rewarding when you and your family are financially secure.
Following these simple steps will put you on the right track so that you have a prosperous Ramadan filled with warm memories – without having to break the bank!