Cash crunch? Here are 15 tips to wisely manage your routine finances in such dire times

Ways to go about reining in day-to-day expenses when facing a pay cut or a loss of income

Last updated: August 28, 2020 | 12:51

Gulf News Report

2 MIN READ

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Ways to go about reining in day-to-day expenses when facing a pay cut or a loss of income.

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Take 10 per cent of what you bring in, put it aside and let it accumulate.

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Pay rent, school fees, utility bills, grocery, fuel and then set aside the surplus.

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Use some of the fringe benefits on your credit card.

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Optimise vehicle fuel bills by combining more than one essential trip.

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Leasing a car makes more sense in the short term versus buying a car.

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Once salary is credited, pay bills through auto pay to avoid fines.

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If phone bills are out of control, seek pre-paid instead of post-paid.

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Be mindful of the use of your calling minutes from the beginning of the month.

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Plan well for big monthly savings.

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Bulk buys give far better deals financially.

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While planning your costs for clothes, spread the expenditure over months.

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Draw up a budget on the number of times you are likely to eat out and set up a cash ceiling.

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Avoid holding onto more than one credit card. It make you vulnerable to fall into major debt traps.

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Its often recommended that you set aside funds for a rainy day. But how much?

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Put 50 per cent of your monthly savings into a separate savings bank account.

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Invest at least 10 per cent of your monthly income into a plan like mutual funds, stocks or bonds.

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If you are not able to do this, you may need to consider other means of income as well.

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Seek to save by using discount coupons at your local hypermarket!

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Preferably, stick to one supermarket to avail long-term savings in loyalty programs.

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Let's look at some crucial money saving ideas while renting or buying a home in the UAE.

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You could also rent a home in a location nearer to your children’s school or your place of work to save on transport costs.

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Opt for a residential area that is cheaper than the expensive downtown area in Dubai.

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Get-togethers are good as long as it does not come at the cost of your financial goals.

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If it’s a singles or couple’s party, draw up a budget and stick to the limit.

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