How to cut costs as UAE utility bills grow bigger

Money experts offer their saving tips to an Abu Dhabi resident coping with a 40 per cent hike in his utility bills.

My Abu Dhabi water/electricity bills have been up by 40 per cent since January 1. How can I cut costs elsewhere to make room for the increase in my bills? For example, I have cut back on my Etisalat package to bridge the difference. Are there other ways to cut my regular monthly payments? PL, Abu Dhabi

Expert advice one:

Preeti Bhambri, founder of moneycamel.com

There are many small things you can do to reduce your expenses overall, but focus on reducing the utility bills first.

• Save on electricity bills:

The main cause for a high bill is the AC, so try to replace the air-conditioning unit with an energy-efficient unit. Use energy-efficient lighting in your home. And switch off or unplug the electronic devices that aren’t being used. Service your air conditioner and clean air filters regularly.

• Reduce water consumption:

Use the shower instead of filling the bathtub every time. Wash full loads of clothes rather than smaller loads. Manually water your plants instead of using sprinklers. Grow desert-acclimatised plants to keep a beautiful garden all year round.

• Reduce financial payments:

Shift to a cheaper loan to save thousands of dirhams every year. Use your own bank’s ATM to avoid paying the switch fee every time you withdraw cash.

• Cut your rent or mortgage

If you are renting, downsize to cheaper accommodation and live closer to your place of work. If you own a house, switch to a lower rate. A low-interest mortgage can save you up to Dh5,000 in the first year.

• Other saving options:

With fuel prices also on the rise, consider a fuel-efficient car. Use loyalty cards for grocery shopping at Union Coop, Carrefour or Lulu to save on grocery bills. Use a credit card that has an affiliation to air miles. And take advantage of any offers affiliated to your credit or debit card. Discount opportunities with The Entertainer book and deal-sharing websites such as Groupon or Cobone for shops and restaurants can also save you money, as can shopping online. Branded goods are available at 25 to 30 per cent discount abroad, so buy online and get goods shipped through a Shop n Ship account with Aramex.

Expert advice two:

Ambareen Musa, founder and chief executive of Souqalmal.com

Start with unsubscribing from add-ons on your mobile service and trimming your TV package. Change your mobile data plan to one which suits your usage needs.

If you’re a light user and only use your phone for social media and light browsing, consider downgrading your plan. And look into switching from a post-paid to pre-paid mobile plan.

Another trick is to use the free Wi-Fi available at malls, cafes and restaurants.

Try to cut back on superfluous expenditures. Cancel any gym membership you don’t use or magazine subscriptions. Keep a tab on shopping and eating out; taking your own lunch to work can save an average Dh500 per month.

Remember, your credit and debit card can also get you discounts. Other ways your credit card can help is through cashback and rewards schemes.

The Standard Chartered Titanium credit card, for example, can get you 10 per cent cash back on utility bill payments. To reduce your monthly utility bills, use your dishwasher and washing machine only when you have a full load.

Avoid watering your plants during the hottest time of the day and use the shower instead of the bathtub or install more water-efficient bathroom fittings. For electricity, set your AC temperature at an optimum level and a degree or two higher during the evenings. Use thicker curtains and keep them closed during the day.

Next Money Clinic:

There is a lot of talk about the Federal Reserve raising interest rates soon. Does this mean it's a good time to rebalance my investment portfolio? And what is the best strategy to weather a rate hike? NB, Dubai

Every three weeks The National features a reader’s personal finance problem. If you have an issue or would like to suggest a solution for another reader’s concern, write to [e-mail].

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

Follow us on Twitter @TheNationalPF