Start by reviewing your living costs with the aim of saving about Dh2,000 a month. Gulf News spoke to some financial experts who provided some tried and tested advice:
Opt for cheaper rental accommodation
Rents in popular areas, have remained fairly static over the last twelve months, so there is room for negotiation.
If your lease is up for renewal ask for a reduction in rent with your landlord.
If this cannot be done, it is worth looking around to see whether you can find a cheaper property.
A change of accommodation to somewhere closer to schools or work can help cut transport costs.
Keep in mind the hidden costs of moving, but plan to save Dh1,000 per month by finding new accommodation. It's possible.
Cut down on your utility bills
Turn off air conditioners, lights and appliances and put electrical appliances that are not in use in stand-by mode. Follow tips to reduce water usage.
Compare your municipality tax charge with the 5 per cent of rent that you are supposed to pay.
Claim back any overpayment. The municipality has an office to deal with overpayments, at Al Noor station on Shaikh Zayed Road. Savings could be as high as Dh500 per month, even for cheaper homes.
Repay your debts
If you have outstanding balances on credit cards, check to see if you have the best interest rate and if it is worth changing financial institutions. Again, look out for hidden costs.
The interest rate charged on credit cards is always higher than the interest you will receive on your savings in a bank account.
So if you do have some savings consider using these to repay your credit card debt.
This will save you money in the long run.
While credit cards offer a convenient way of paying for goods and services make sure you can clear the balance every month.
If you need funds, consider a low-cost loan as an alternative to using your credit card. Do the sums.
Shop for cheaper insurance
When your car, home and travel insurance is up for renewal, shop around to see what other companies are offering. Even a 10 per cent saving on each type of insurances will add up to a considerable amount over the year. A comparison website can help save you time while finding the best insurance deal. For example, www.insureme.ae allows you to compare the cost of car, home, travel and medical insurance from different companies.
Reduce commuting costs
Dubai has an excellent Metro and bus network, so make the most of the public transport system.
Using public transport instead of taxis could save you up to Dh2,000 a month.
Drive safe and save: reduce your speed and observe the speed limit to save fuel and wear and tear on the car.
Downgrade to a smaller car and buy new, or newer, to reduce repair bills, if you feel you can save this way.
Curb communicationand entertainment
Review your etisalat or du package. Do you subscribe to movie channels you do not watch? Look for a television, landline or internet package that suits your needs better and saves you money. Both telecom providers offer discount packages. It might be possible to save Dh250 per month.
Prepare food at home
One coffee a day bought from a store during the working week adds up to approximately Dh400 a month. Sandwiches from home could save you up to Dh1,000 a month, if you buy lunch every day.
Take a shopping list to the supermarket to avoid expensive impulse buying. Dig out the cookery books, plan a few meals and only buy what you need, choosing house products rather than costly big-name brands.
Take your time, especially when buying, expensive items. Maybe wait a year or two and save to buy a desired item.
If you really want to buy high quality brands, consider second-hand products.
Find them online or with specialist shops.
Save, save, save
Cut down on eating out and going to the cinema. Use vouchers to reduce the cost of going out. You can save up to Dh700 a month. Quitting smoking can save between Dh300 and Dh600 a month.
Book holidays well in advance for the best travel and accommodation prices.
Earn a few extra bucks
Sell your clutter online or from your garage. Old books, clothes you haven't — or only seldom — worn and kitchen appliances you don't use, can all be turned into cash.
Sources: Rupert Connor, Acuma Wealth Management; Sarah Lord, Killik and Co. and Steve Gregory, Holborn Assets