Your Money

Saving and Investment

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.

Published: February 22, 2021 11:00 Justin Varghese, Your Money Editor

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What not to do when saving money in a crisis! — Don’t dip into savings without a plan and withdraw too often. Image Credit: Stock image

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What not to do when saving money in a crisis! — How often do you turn to your savings? Image Credit: Stock image

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What not to do when saving money in a crisis! — Keep in mind that you’ll eventually need to save up again. Image Credit: Stock image

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What not to do when saving money in a crisis! — Don’t be too aggressive in saving for future needs. Image Credit: Stock image

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What not to do when saving money in a crisis! — Did you initially target to pay off your high-interest credit card debt at the start of the year? Image Credit: Stock image

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What not to do when saving money in a crisis! — Reassess your strategy at least for the short term. Image Credit: Stock image

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What not to do when saving money in a crisis! — Don't just save for immediate use, only to spend it all again after the pandemic eases. Image Credit: Stock image

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What not to do when saving money in a crisis! — Money needs to either go into an emergency fund or into buying assets such as stocks. Image Credit: Stock image

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What not to do when saving money in a crisis! — When we wisely buy assets like this, our money helps build the freedom and safety of our future. Image Credit: Stock image

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What not to do when saving money in a crisis! — Don’t give up on retirement savings because of a setback. Image Credit: Stock image

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What not to do when saving money in a crisis! — Don’t give up on retirement savings because of a temporary setback. Image Credit: Stock image

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What not to do when saving money in a crisis! — Always consider investing for retirement, be it a retirement plan or a pension account, for the long-term. Image Credit: Stock image

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What not to do when saving money in a crisis! — Questions to ask yourself when considering whether to build up the retirement fund further during such dire times. Image Credit: Stock image

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What not to do when saving money in a crisis! — 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. Image Credit: Stock image

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What not to do when saving money in a crisis! — Don’t defer or put a pause on all your loans all at once - costs will add up! Image Credit: Stock image

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What not to do when saving money in a crisis! — Service high cost loans first or pay those with longer repayment tenures and seek relief for low-cost ones. Image Credit: Stock image

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What not to do when saving money in a crisis! — Loans which have a long tenure ahead will bear a higher cost. Image Credit: Stock image

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What not to do when saving money in a crisis! — If you miss EMIs early in loan schedule, a bigger amount of unpaid interest gets added to loan. Image Credit: Stock image

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