1. Stop spending
Switch to a budget supermarket over your favourite grocery store, avoid the malls completely - it could save you thousands of dirhams – and buy second-hand. Keep track of group-buying websites that offer two-for-one voucher deals or cheap offers and eat in, not out. Other simple measures include driving safely as costly speeding fines can quickly accumulate and taking your own coffee and lunch to work.
2. Switch your credit card
Credit cards can be expensive if you pay annual fees or high interest on your outstanding balance. Shop around for a card with no annual fee and a lower interest rate. Commercial Bank of Dubai, for example, has recently released a card with the lowest interest rate on the market of 1.5 per cent. The card has no annual fee and 0 per cent interest on balance transfers from other banks for six months.
3. Reduce your bills
For household bills, turn off the lights and AC as much as possible and switch off any non-essential appliances. Have a shower instead of a bath, water your garden only in the evening to avoid evaporation and turn off the tap when you are shaving or brushing your teeth. For your mobile bills, switch to pay as you go instead and tap into Wi-Fi at home or work.
4. Consolidate your debts
For those with multiple debts, it might be worth taking out a consolidation loan – where a bank buys out your debt and groups it all into one loan with fixed repayments. Refinancing offers debtors cheaper rates and more manageable financial payments, plus it takes away the stress of trying to meet multiple monthly repayments. Abu Dhabi Islamic Bank offers the Al Khair Liabilities Settlement to help those get rid of interest-bearing credit cards, car and personal loans. The loan comes with flexible repayment options and no processing fees. You must have a minimum salary of Dh5,000 and be over 21 to apply.
5. Draw up a budget
Calculate your income versus your regular monthly repayments and then assign a weekly spending limit on the amount that’s left over. For a more comprehensive plan, download an online budget template to help you create a financial plan not only for the next month but the whole year. It’s also worth keeping a spending log to highlight any areas where you are frittering away cash.
arayer@thenational.ae
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