UAE: Facing a pay cut? Here's what you should not do when saving money during COVID-19

When seeking to save money in a dire situation, keep in mind the Don'ts as well.

Last updated: February 22, 2021 | 12:59

2 MIN READ

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Don’t dip into savings without a plan and withdraw too often.

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How often do you turn to your savings?

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Keep in mind that you’ll eventually need to save up again.

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Don’t be too aggressive in saving for future needs.

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Did you initially target to pay off your high-interest credit card debt at the start of the year?

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Reassess your strategy at least for the short term.

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Don't just save for immediate use, only to spend it all again after the pandemic eases.

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Money needs to either go into an emergency fund or into buying assets such as stocks.

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When we wisely buy assets like this, our money helps build the freedom and safety of our future.

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Don’t give up on retirement savings because of a setback.

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Don’t give up on retirement savings because of a temporary setback.

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Always consider investing for retirement, be it a retirement plan or a pension account, for the long-term.

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Questions to ask yourself when considering whether to build up the retirement fund further during such dire times.

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By answering these questions you’ll be able to understand the emphasis on how vital it is to build up retirement savings in your case alone.

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Don’t defer or put a pause on all your loans all at once - costs will add up!

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Service high cost loans first or pay those with longer repayment tenures and seek relief for low-cost ones.

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Loans which have a long tenure ahead will bear a higher cost.

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If you miss EMIs early in loan schedule, a bigger amount of unpaid interest gets added to loan.

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