Money & Me: British executive consultant has lessons learnt early in life

British business owner says his best investment decision was buying a property in Dubai's Green Community in 2009 when the market was softer.

Mike Hoff says he was taught early that hard work is the only source of cash. Antonie Robertson / The National

Mike Hoff is the founder and chief executive of Mike Hoff Consulting, a Dubai executive consulting business, which he set up in 2012 and runs with his wife. The Briton, 53, has more than 30 years of senior leadership experience, beginning his career in the UK in 1985 in the hospitality industry. He moved to the UAE in 2004.

How did your upbringing shape your attitude towards money?

My parents were entrepreneurs running a small business in the north of England, so from an early age I gained a good understanding of the true value of money. My upbringing also taught me that living beyond your means was not an option, so hard work was the only source of cash and you don’t get something for nothing in life. Being self-employed meant that you also had to build up cash reserves to get you through the tough times and to take time off, even though no income would be earned while we were on holiday.

How much did you get paid for your first job?

It was in hospitality and I earned £7,000 (Dh34,000) per year. I remember feeling very rich at that time.

Are you a spender or saver?

I tend to be more of an investor, so I save money with a focus on a certain amount or number of months operating expenses in the bank and then spend the excess on either personal or business investments, such as pensions or marketing the business.

What is your most cherished purchase?

It has to be our holiday to the Maldives in 2004, as it as was then that my wife Claire and I realised that we wanted to spend the rest of our lives together. I don’t remember the cost but I know that we couldn’t really afford it at the time but we needed the time away, so it was priceless. As is the fact that we now are running our own business together.

Have you ever had a month where you feared you could you not pay the bills?

There have been several times where this has been the case and not just while running our own business. The fact that credit was so easy to obtain in the UK during my career meant that at times I did over-commit, however the bills did always get paid. I always seem to find a way.

Where do you save?

I save in a variety of ways; we own our house here in Dubai in the Green Community, which has proved to be a solid investment. I also believe that, in the same way that leaders need a business coach, you need an expert around helping you make the right decisions when it comes to saving. So I have a finance manager who supports my savings strategy through a variety of short, medium and long-term plans. Important things when making a saving decision is being in control of the cash and being able to get access to it easily.

Do you prefer paying by credit card or in cash?

I mainly use the credit card as it saves carrying large amounts of cash around, which can be inconvenient and less secure. It also helps our cash cycle, as there are 30 days in which to pay the amount off.

What has been your best investment?

Undoubtedly the house here in Dubai, as we bought in 2009 when the market was softer. I believe that property is probably the best long-term investment that you can make, even in these turbulent times.

What financial advice would you offer your younger self?

Do not get five credit cards when at university, as it will take you 10 years to pay them off and you will end up spending thousands of pounds in interest payments.

Do you have a plan for the future?

The plan is to be able to provide for our retirement in a way that our standard of living will not need to decline. The business plan we currently have in place supports this goal. The important thing about having a plan is acting on it and reviewing it on a regular basis.

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