How much of your salary should you set aside for monthly rent, food, commute?

Dubai: Wondering if your expenses are on track? Here's what UAE residents and experts say about how much they spend on rent, food, and transport.

Is your spending normal?

Ever looked at your expenses and thought, “Am I spending too much?” You’re not alone. Many of us wonder if our spending on rent, food, and transportation is within a “normal” range. Comparing your expenses to general guidelines can help you identify areas for improvement and fine-tune your budget.

How much should you spend?

A widely recommended budgeting rule is the 50/30/20 rule: spend 50% of your income on essentials (like rent, food, and bills), 30% on wants, and save or invest the remaining 20%. Another approach is to allocate 70% for living expenses, 20% for debt repayment or savings, and 10% for discretionary spending.

Are your housing costs normal?

Experts suggest keeping housing costs at 30% of your income. However, according to UAE platforms, lower-income households (earning Dh8,000-Dh15,000) often spend 37%-52% of their income on rent. Mid-income earners (Dh15,000-Dh25,000) spend 34%-49%, while higher earners (Dh20,000-Dh35,000) manage to keep it to 27%-33%.

If your housing expenses are higher than average, consider downsizing or moving to a more affordable area. Aditya Munjuluru, a Dubai resident, managed to cut housing costs by moving to a smaller home, freeing up funds for savings.

Transport costs: What’s normal?

Financial planners advise spending 10%-15% of your income on transportation, including car payments, insurance, and fuel. However, lower-income households in the UAE can spend up to 26.9% of their income on transportation, compared to just 10.4% for higher earners.

To reduce transport costs, Andrew Bailey, a Dubai-based personal finance consultant, suggests trading in an expensive vehicle for a more affordable one. It’s a move that saved Munjuluru money when he opted for a less expensive car model.

How much should go to food?

Food expenses should ideally take up 10%-15% of your income. If you find yourself spending more, try meal planning, using discounts, and reducing dining out. UAE resident Rebecca Gifford, whose household income is in the higher range, discovered her family was spending over 20% on food and has since cut back.

Bottom Line?

The key to knowing if your spending is “normal” is to regularly track your expenses and compare them to recommended benchmarks. If you’re overspending, consider using cash-only methods like the envelope system to avoid going over budget. Once the cash runs out, stop spending—it’s the ultimate way to stay accountable and on track!