How UAE families can save money in uncertain times: Budgeting, saving and debt tips explained

Times have been a bit tough, of late.

But chin up, chin up, as Dubai-based Shraddha Mishra, a homemaker insists on telling her children. "There's always a way forward, and that's what we do."

Indeed, in the past one month, she along with other residents have looked to make changes in their lives, cut costs wherever necessary and if that includes switching cereals for bread, so be it.

For instance, Mishra and her family have reduced their family trips considerably in the past month. “We used to go out every weekend. We’ve stopped that now, as it just saves a lot of fuel. We’re still trying to learn how to be better at maintenance; it’s a long learning process. One thing is for sure, we’ve stopped dining out at restaurants or ordering in. We just try to make do with what we have.”

The road might be bumpy, but others have been learning to either side-step them or pick themselves up from the falls and stumbles.

So, how do you go about it?

Plug the everyday leaks

Start with the small, recurring expenses that drain your budget. Fuel is a prime example. As personal finance content creator Kartik Iyer explains, “Working from home for one day a week can help meet your fixed fuel costs. Fuel costs are up 30 per cent so reduce drive time by 30 per cent.” This is assuming that your office allows for such a hybrid situation.

Moreover, remember your food habits matter just as much.  “Meal prepping and cutting out takeout will go a long way in helping the pocket and the waistline,” explains Iyer. And then there are subscriptions, often forgotten, rarely used. “Cut at least one ongoing subscription. If you can’t recollect all your subscriptions, good chance you have too many.”

Make your spending work for you

It doesn’t always mean spending less. It’s learning how to spend what you have.  Armin Moradi, CEO and Founder of Qashio, points to cashback and loyalty ecosystems, which can serve you well. “Certain cards offer 5,10 per cent cashback on everyday categories like groceries and essentials. This way, a large family spending Dh10,000 on food and groceries, gets Dh500-1,000 back, which effectively reduces net spending on those items,” he says.

He also recommends enrolling in supermarket and fuel loyalty programmes, and buying non-perishable items in bulk to reduce long-term cost, which are strategies that stretch every dirham further.

Rethink big-ticket and lifestyle spending

It’s true: Before you know it, your wallet and cards feel empty. That might come down to cars, travel and weekends out. As Iyer notes, cars are something families tend to spend more on than they should, largely because it’s easy to get an auto loan. “As a rule of thumb, your car expenses should be 8% of your income at most,” he adds.

And then, look at your lifestyle swaps. You might have to cut down your travels abroad, but you can still check out local staycations. “Hotels in Dubai have such good deals going on right now,” he suggests. If you’re worried that your social life will come to a standstill, it won’t: “Host potlucks and game nights at home instead of going out. This will bring down the cost on weekends whilst still having a good time.”

Moradi adds that families can also tap into discount platforms and rewards programmes that 'offer deals across entertainment venues and food outlets,' helping maintain quality of life while keeping spending in check.

Saving doesn’t have to be dramatic. You can round up every card transaction to the nearest dirham and stashing the difference in a micro-savings account. If you bought a latte for Dh18.50, round it to 19, save 0.50. Over weeks, those tiny amounts add up without you even noticing.

For your children, you can also turn saving into a game. Try a ‘buy nothing day’ once a week or even a ‘no-spend month’ with friends or family.

Get strategic about debt

Debt can quickly become the biggest source of financial strain if left unmanaged. Iyer recommends starting small for momentum: “Pick your smallest debt outstanding and pay it off. It gives you a dopamine hit and then move on the next one.”

But he is equally blunt about behaviour: “Stop buying things you don’t need, with money you don’t have, to impress people who don't care.”

From a structural perspective, Moradi advises exploring better repayment options. Families can consider refinancing at lower interest rates or consolidating high-interest debt into a single, more manageable loan. He also suggests engaging lenders to negotiate terms that better align with household cash flow, easing pressure over time.

Budget with intention, not guesswork

A more disciplined framework can make all the difference. Sonal Chiber, Senior Financial Consultant at Crisil Coalition Greenwich (part of S&P Global), recommends a zero-based approach. “Start with a zero based budget where income is fully allocated across essentials, savings, and discretionary spending,” she says. Fixed costs such as rent, school fees, groceries, utilities, and insurance should be prioritised first.

She also suggests breaking monthly income into weekly spending limits to avoid early overspending, automating bill payments and savings, and building a buffer for unexpected expenses, small systems that reduce stress and improve consistency.

Save first, then spend

When costs rise, saving often takes a back seat, but experts argue it should be the priority. “Having an emergency fund, especially in these uncertain times, is critical. Even if that means we have to compromise temporarily on the long-term goals. One can always catch up later,” says Iyer. Once three to six months of expenses are set aside, families can redirect the surplus towards long-term investments.

As Moradi notes, a practical emergency fund typically covers 6–12 months of essential expenses and should be held in accessible accounts, before allocating excess funds to long-term assets.

Chiber reinforces the mindset: “Families should treat savings as a non- negotiable expense, even if the amount is modest.” Consistency, she stresses, is more important than size.

Looking ahead

There’s a limit to how much you can cut. Increasing income, even slightly, can change the equation entirely.

“There are only so many lattes and subscriptions you can cut from your life. Your 9-6 pays for your livelihood, but 6-9 pays for your lifestyle,” says Iyer. What you do outside your core working hours matters. “Watch Netflix, and you’ll struggle in these times. Build a side hustle or increase your skills in that time, and you’ll be way ahead in a few years.”