UAE: How residents earning a Dh10,000 salary can retire with Dh1 million

Expert offers tips to boost savings, allocate budget

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Waheed Abbas

Published: Sun 28 Aug 2022, 12:06 PM

Last updated: Sun 28 Aug 2022, 11:02 PM

Since most companies in the UAE are not obliged to provide an employee pension scheme like in other countries, millennials must make their own provision for the future.

“If someone has a steady stream of income or in stable employment, then they should be saving whilst they can. Save whilst there is income because if there is an interruption in income or employment, then savings will already be there to dip into should they be needed,” says Rupert J Connor, partner at Abacus Financial Consultants.

Keeping in mind an average salary of Dh10,000 per month, Khaleej Times asks financial advisors to guide readers on how much to spend and save on their monthly income so that they can allocate their budgets accordingly and not overspend.

By following this practice, the UAE residents can accumulate more than Dh1 million in 20 years when they invest their 20 per cent savings, growing at around seven per cent per annum, says Damodhar Mata, a financial advisor in Dubai.

Since around half a million dirham can be saved by just setting aside 20 per cent in savings, profits from the right investments can increase multiple times and help residents’ saving to reach around a million in two decades.

How to allocate budget:

  • 20% of income should be saved, at least
  • 50% for needs such as food, rent, utilities, transportation, etc.
  • 30% for wants, entertainment, debts, and luxuries

Tips that residents can follow to boost their savings:

  • Start small and set realistic financial goals
  • Use apps like Sav to track spends and automate savings
  • Set aside some money every week or month
  • Lookout for discounts and rewards
  • Setting and following a budget
  • Setting challenging savings goals and using the pay yourself strategy
  • Avoiding unnecessary retail debt, especially on credit cards
  • Use public transport or keeping the car for five years or more
  • Consciously avoiding traffic/parking fines
  • Planning and booking tickets for the annual vacation in advance
  • Cooking food at home
  • Focus on quality of clothes instead of the brand
  • Start saving early
  • Pay off and avoid debt
  • Organise finances, and have a plan
  • Don’t wait to save for retirement
  • Don’t spend money you don’t have
  • Plan to save first


Source: Sav Money, Abacus Financial Consultants, Damodhar Mata, KT Research

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