UAE budgeting tips: Think twice before you spend big!

Dubai: We’ve all been there. The urge to splurge on that shiny new gadget, designer shoes, or even a luxury item that promises to add value to our lives. It feels great in the moment, but the buyer’s remorse that follows is real.

For many of us in the UAE, where shopping is a lifestyle, it can be easy to get carried away with impulse buys. But here’s the thing—before you splurge, there’s a simple trick you can use to avoid wasting your hard-earned money: the “cost-per-use” formula.

What’s the cost-per-use formula? 

Think about the last expensive item you bought. A Dh2,000 pair of jeans, maybe? Or perhaps a fancy coffee machine that costs a small fortune? How often do you use those items? If you’re like most people, you probably don’t use them every day. The trick here is to think about how much the item will cost you per use over time, rather than focusing just on the price tag. Here’s how it works:

Take something like a Dh3,650 coffee machine. If you plan to use it every single day for a year, you’re looking at about Dh10 per use. Use it for two years, and that cost drops to Dh5 per use. This simple calculation helps you see whether the purchase is really worth it in the long run.

Why does this matter? 

We all know how easy it is to get caught up in the moment while shopping. Maybe you’re swayed by a flashy ad or a brand name, or maybe the price tag doesn’t seem that bad in the heat of the moment. But when you step back and think about how often you’ll use the item, it becomes clearer whether it's really worth the investment. 

For example, imagine you’re eyeing a Dh500 designer sweater. If you wear it once a week, over a year, that’s just Dh10 per wear. Compare that to a Dh1,000 dress that you’ll wear once a month (maybe), and suddenly, the sweater starts to look like a better deal.

How can it help you save? 

By asking yourself “how often will I use this?” before making a big purchase, you’ll start prioritising value over price. Instead of focusing on the upfront cost, you’ll get a clearer picture of how much that item will really cost you over time.

This method is particularly helpful for those who tend to overspend on “wants” rather than “needs”. Maybe you’ve got your eye on that sleek new gadget or fancy luggage set. But when you think about how often you’ll actually use it, you might realise that your money could be better spent elsewhere.

For example, buying a Dh1,500 piece of exercise equipment that you’ll use once a week for a year will cost you about Dh28 per use. That’s a hefty price for something you won’t use often. On the other hand, you could invest in a gym membership for the same price, using it several times a week, and get far more value for your money.

Bigger purchases? Same rule applies 

The cost-per-use principle isn’t just for small purchases—it works for big-ticket items, too. Take buying a car. If you only plan on using it for weekend trips, consider whether it might be more cost-effective to rent or use ride-sharing services instead. After all, the less you use the car, the more expensive it becomes on a per-use basis.

Bottom Line 

Shopping isn’t just about price—it’s about value. Next time you’re tempted to splurge on that luxury item or high-end product, think about how often you’ll use it. Apply the cost-per-use formula to ensure you’re getting your money’s worth.

If you make this a habit, you’ll find yourself making smarter purchases—whether it’s a new pair of shoes, a pricey gadget, or even a car. So, before you pull out that credit card, ask yourself: Does this purchase really make sense for my lifestyle? Is it worth the cost per use?

In the end, it’s all about smart spending. Prioritise items that offer long-term value, and your wallet will thank you for it!