If there’s one thing that financial experts all agree on when it comes to getting your money in order, it’s to save at least six months’ worth of salary for emergencies.
“It’s important to save to have financial security, buy your own home, plan your retirement, build a college fund for your children and for any unforeseen expenses,” says Farid Al Mulla, Deputy Head of Consumer Wealth Management at Emirates Islamic. “While we encourage customers to save as early as their first salary, it is never too late to start saving. The key is to start.”
However, for many people the very thought of saving up cash for the future, sticking to a budget, and sometimes forgoing that weekend brunch, a new gadget or staycation is difficult for different reasons, so they delay putting money aside.
Mile Coady, a Dubai finance specialist and coach, says there are many explanations people give for not saving but most of them are excuses rather than reasons.
“When someone tells you that they don’t save because they don’t earn enough or because prices continue to rise, they’re likely to be offering a rationalisation rather than an explanation for their inertia,” he writes in his blog.
“The real reasons people don’t save are seldom economic – they’re much more likely to be psychological. One of the reasons people don’t save is that they cling to the illusory idea that things will somehow improve – that regardless of their efforts, things will get better, their talents will suddenly be recognised, and all their financial worries will disappear.”
It’s a common issue. A survey conducted in the UAE by global consulting company Mercer in 2020 found that almost half of the residents are delaying saving for their retirement until their late 40s and 50s.
But it doesn’t have to be that way, as there are simple and rewarding ways to save. With the award-winning Kunooz Savings Account from Emirates Islamic, not only do you get to save but you also have the chance to win – and win big!
This unique savings account offers account holders the opportunity to drive away in a spectacular Tesla car – six Teslas are up for grabs this quarter. Plus there’s a grand cash prize of a whopping Dh1 million too, in addition to Dh50,000 every fortnight.
The Kunooz Savings Account is a great motivator for people to start saving, says Al Mulla.
“The account gives away millions in prizes every year to encourage and reward savers. Hundreds of people have won luxury cars, apartments, gold and cash prizes in the past. So not only do they pile up money but their savings could change their life if they win big. We have more exciting prizes lined up for 2022.”
Financial advisors encourage people to watch their spending to be better savers – recommending a minimum saving of 20 per cent or more of income, spending 50 per cent on necessities like food, rent, utilities, and transport, and spending the last 30 per cent on wants and desires such as leisure, apparel and travel.
For those with no savings whatsoever, Al Mulla has practical advice.
“Every dirham saved will encourage you to save more. When you get your first Dh1,000 saved up, you should then aim for the Dh5,000, then Dh10,000, Dh100,000, a million and so on. When you see your balances increasing, you will be encouraged to save more.”
High-profile money writers all agree that good financial decisions made today can dramatically affect not only a person’s life but also their legacy.
Famed American money expert Dave Ramsey – author of five New York Times best-sellers, notably The Total Money Makeover – believes it’s important to also know your decisions aren’t just about you.
“You’re laying the groundwork for your entire family tree. If you can successfully build wealth, that wealth becomes a sturdy foundation for your family to stand upon,” he wrote.
“Making smart financial choices provides an example for your children – and their children – to live by.”
To learn more, visit Emiratesislamic.ae