Experts offer tips on managing expenses to avoid overspending

Dubai: Getting caught up in the World Cup action is an easy way to distract consumers from the household budget, so it pays to always keep a tab on spending this month, financial advisers recommend.

Avid football fans will find it a challenge to get a grip on their spending and if they haven't set aside a proper budget, they're more likely to face a tougher financial situation in the coming months.

The sheer amount of football-linked promotions, merchandise and advertising in the UAE does not motivate people to spend modestly either.

Although it's been two weeks into the month-long football season, diehards can still find smart ways to tone down spending. It's not too late to come up with a financial plan. Decide how much money you think you need for the remainder of the World Cup and make sure you stick to your budget.

"Writing down all the extra expenses you envisage, from signing up for the World Cup TV package to that 2010 England shirt you really want, is a wise move, as at the end of the day everything has to be paid for.

"Setting yourself a World Cup budget, and sticking to it, will help save you the pain of any overspend later in the year," advises Gurnos Stonuary, business services director at Nexus Insurance Brokers.

"Chipping in with friends to buy the World Cup TV package could also help you save, as watching the games from home means temptation to buy expensive consumables is removed.

"But make sure you stock up the fridge with cheaper supermarket snacks to stop you and your friends from reaching for the takeaway menu," he adds.

For those who prefer to catch the party atmosphere outside, there's more they can do to keep their spending in check. Restaurants and bars in Dubai are dangling promotions and if used wisely, fans can reduce their World Cup bill.

"Some establishments are cutting the percentage of food and beverage bills by the number of goals scored, while others have ‘two for one' deals on drinks and meals," notes Stonuary.

Steve Gregory, managing partner of Holborn Assets, stresses the need for consumers to plan their budget to avoid a financial hangover that can last for months or even years.

"The majority of people have inadequate budgeting skills and spend what they have, then borrow on credit cards — all in the interest of having a good time. They end up paying in future years for the mismanagement of their money this year," he cautions.

If people indeed blow their money on the World Cup, they have to review their financial plans and look at areas where they can make savings.

Making some changes in the lifestyle can get people back on track with their normal budget in the succeeding months.

"It's hard to cut back. But the economy is on your side at the moment. Rents are still falling by incredible amounts. There is still oversupply and under demand, so you can look for cheaper accommodation and use the Metro to travel to work," Gregory advises.

"Next, decide to cut up at least half your cards and do it. Then overpay the minimum due. Pay double the minimum and the same each month from here on.

"Stop spending for a few months while you get control of your budget. It's worth it. And the alternative is probably going to land you at risk of going to prison," he adds.

Stonuary also recommends shopping at less expensive food stores, buying local brands, only eating out once a month instead of once a week, starting a car-share scheme and looking for deals on flights ahead of travelling.

"The list is endless. What's difficult is sticking to a strict financial regime, and what helps you do that is by writing out a detailed annual budget so it's clear in your mind why you need to be financially careful," he points out.