Last year, inflation surged worldwide, leaving many restless and with rising living costs. This has increased awareness of the importance of savings, retirement readiness, and, most importantly, money management in deeper contexts.
Especially in a city like Dubai, where expats make up more than 80% of the population, savings are very important to meet their long-term goals. Most expats come to this city of opportunity with the primary focus on retirement, whether it is by investing in their home country or by trying to claim the benefit of a Golden Visa through property ownership.
This article will gather expert insights on how to save money in Dubai as an expat, making sure they offset your goals when necessary, for retirement, and during periods of wild inflation.
Having a simple budget can help you track your expenses and overall cash flow. It helps you analyze areas you can cut down on or plan around them. One of the best ways to get around this would be to follow the famous 50/30/20 rule.
This is where you spend 50% on essentials like food and house, the other 30% on wants or things you enjoy doing and in repaying debts, and the 20% goes into savings or investing.
If you have better money management skills, you can cut down on the 30% and reroute it to savings, making the amount you allocate for savings above 20%.
Let’s face it: housing, rental, or accommodations account for a large portion of monthly expenses. Assess if you can get a better, cost-effective rental option.
As financial advisors best say, once you take better control over large spending, the smaller ones will follow. This means that lowering costs in areas of large spending can lead to significant savings.
If you are trying your best to master ways to save money in Dubai, then you should not be spending anything more than 30% of your income on rent.
Dubai boasts a wide public transport network with buses, metros, trams, and ferries, allowing residents to commute safely, affordably, and efficiently. If you don’t have your own vehicle, using public transport is one of the best ways to save money in Dubai.
You can also use the NOL pass, which allows public transportation in Dubai. It costs AED 300-350 a month. Trying to find housing or accommodation closer to the workplace or metro station can also cut down on travel expenses.
Eating out on a regular basis can add up to a large amount of expenses, reducing the overall potential to build savings. Now, this doesn’t necessarily mean you should dine out; even ordering food through apps from the comfort of your home can be even more expensive.
Save on these expenses by cooking meals at home. Meal prepping for the week can prevent you from ordering out when you feel lazy.
If you want to order out, try to filter for daily discounts so you can make cost-effective choices. Having coupons, points, and membership deals can also help with affordable dining options.
Google and search for affordable dining options before you step out or confirm a place to hang out with friends. This will prevent you from making spontaneous choices that can be expensive, and have better money management skills.
While it can be tempting to plan a lot for the weekend and think about brunches, spa treatments, and staycations, it is possible to enjoy Dubai without spending a lot.
Especially if you want to explore ways to save money in Dubai, taking advantage of free and low-cost activities or entertainment is the only way to go about it.
Lush green parks, beaches, street arts, and budget-friendly street foods and BBQs are some affordable ways to keep yourself entertained in the city during the weekend.
Utility bills are another expense that can be very high when managing a lifestyle. Using or investing in energy-efficient alternatives can be one way to cut down on this cost.
Do your research before choosing internet, calls, or TV packages. Always try to use basic packages instead of premium options that you barely use.
Similarly, as Dubai has a desert climate throughout the year, residents are accustomed to basically keeping their air conditioning units on 24/7.
Many experts believe that reducing the amount of energy needed to keep your apartment or home cool, even by just 1 degree, can create considerable savings over the course of a year.
Groceries and accommodation are two of the largest expenses for Dubai residents. So, take grocery shopping seriously. Always try to buy your groceries in bulk from supermarkets like Carrefour, Lulu, Geant, or Grand Hyper.
It is also best to enrol for compounds, deals, points, or membership benefits at supermarkets where you frequently buy.
It is also recommended to budget how many groceries you will need a month and then stick to it. This helps prevent overspending when you are lost in the supermarket trying to calculate how many groceries you will need or the need to restock before the month ends.
For non-essential needs like clothing, electronics, equipment, or homeware, always purchase them during sales, shopping festivals, or periods of seasonal discounts.
Gym passes can be quite expensive in Dubai. Thankfully, with the advancement of technology nowadays, it is possible to enrol in many affordable online fitness programs or even use free sources.
Try to get professional help, build your own plan, and stay fit in the comfort of your home or engage in workouts at places like parks and beaches—they can be kinder to your wallet.
While it may seem counterintuitive to spend less, having comprehensive health insurance is crucial for long-term financial stability.
Medical emergencies or other unforeseen health issues can quickly drain savings. If you want to save money with a long-term plan on investing or retirement, then it is crucial to have health insurance that provides adequate coverage at a reasonable cost.
While these 10 methods are effective ways that can teach you how to save money in Dubai, they all start with your mindset and discipline. Not having the right discipline can disrupt the sustainability of your savings habit and not lead to the expected results.
If you need a personalized savings plan that meets your salary and unique goals, it is highly recommended to seek professional help from reliable financial advisors like AIX.
As pioneer financial consultants, they have the expertise to guide you towards effective money management and suggest a sustainable investing pathway that can simplify your journey towards savings and financial independence.
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