The total size of the offering remains unchanged at 900 million shares, representing 25 per cent of the company’s total issued share capital
markets1 hour ago
When the going is good and life is all about checking out new hotspots, spas and exotic resorts, our everyday financial discipline can unintentionally take a backseat. Gradually, we lose track of all those shopping receipts and before we know it, our credit card bills look ominous.
If this is the case for you, step back a bit and ask yourself - are you doing enough to keep your family, not just well-provided, but, financially safe too? Have you loaded your wallet with a store card too many? Have you indiscriminately downloaded half-a-dozen e-wallets or taken out simultaneous finances? Do the month-end credit card statements make you frustrated?
Rising cost of living
Let's not forget the UAE is an expensive country to live in, with an extraordinary choice of lifestyle products and entertainment avenues. There is every possibility of families succumbing to the innumerable attractions of Dubai and living beyond their means. More expensive apartments, newer household gadgets, innovative furnishings can all add to the monthly budget, even as we deal with a general rise in inflation.
The UAE's annual average inflation rate is expected to accelerate to 2.8 per cent in 2017, up from 1.7 per cent last year. Domestic gasoline prices too have been rising since August 2016, adding to living costs. In these circumstances, a lack of financial discipline, even among high-earners, can be disastrous.
State of awareness
The good news is, it's never too late to tighten the belt and straighten one's finances. In this age of mobile banking and digital transactions, it is easy to lose track of expenses. While it may not be pragmatic to enter every expense in a notebook, it is always useful to be aware of one's spending habits and be conscious of the fact that incremental expenses can turn into a nightmare.
So, even if you are too busy to keep detailed accounts, it won't do any harm to run a keen eye through your credit or debit card statements - or even sift through receipts to understand if the numbers are trying to tell you something.
Savings formula
In case you are not a 'numbers person', simply follow an elementary benchmark. US Senator Elizabeth Warren and many financial advisors swear by an uncomplicated formula: Spend 50 per cent on needs, 30 per cent on wants and 20 per cent on savings.
So, for every Dh10,000 income, make sure not to touch Dh2,000; the remaining balance is for you to spend on rent, food, education and entertainment.
Not everyone will be able to meet these targets, especially if they have family responsibilities, live in a high-cost area or if their income is irregular. But a 'savings formula' keeps a check and helps strike a balance between savings and discretionary spending.
Perhaps, more complex is this very challenge of trying to draw a line between 'wants' and 'needs', and the ability to say 'enough.' 'Enough' is the quality of having everything you need and want but nothing in excess, nothing that imposes a burden on you, whatever your income bracket.
Manage credit
Over the years, UAE residents have become quite comfortable with personal financing; they spend on multiple credit cards and avail the convenience of e-wallets. This is a sign of greater prosperity in our society, but once again, it is up to the individual to ensure that he or she doesn't fall into a trap.
For those who have run up multiple debts, the key to unburdening oneself is to prioritise and understand what needs to be paid off first. A sensible and methodical approach to credit settlement can rid you of much anxiety. You could prioritise repayment based on profit rates and pay off the most expensive financing first.
Or, you could choose to pay off your smallest finance and thus check it off your list. Once that's taken care of, use the savings left over and build a small kitty. Make sure to keep paying the standard installments on time towards other dues. If you miss your regular payments on any account, you will only accrue late payment charges.
Before taking on new financing, do rigorous research and compare all the options available. Various reputable websites in UAE help make smart personal finance decisions - whether you want to buy a home, car or make a big ticket purchase on credit cards.
Remember, 'enough is never enough' when it comes to savings, but learn to say 'enough is enough' while spending.
The writer is the business head of consumer finance at Noor Bank. Views expressed are his own and do not reflect the newspaper's policy.
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