Most of us have come to Dubai to get a step up on the wealth ladder, and make a better life for ourselves when we return home. After all, the money you earn here is tax free. The question is how do you save it? You don’t want to be part of the majority that return home after seven years with less than they came with.
Saving
The best way to save whilst you are here in Dubai is to open an international account in a financially stable and politically safe jurisdiction, like Switzerland for example. Swiss accounts used to be only for the wealthy, however now you can get access to Swiss style banking without having to deposit millions of Euros to open an account.
Once you accumulate enough of an emergency fund, three month’s salary is normally a good measure, you can start to make the rest of your money work harder for you by buying assets you can afford. Keeping all of your money in cash is folly. Make your money work for you, rather than the bank.
Keep abreast of the exchange rate. The dirham is pegged to the dollar which means dollar strength or weakness will determine how much your dirhams are worth to you. Often timing a currency transaction well can lead to a tidy saving. However, be warned, predicting exchange rate movements is an art form that comes with experience and is best left to the professionals.
RELATED: Banking tips
A good financial advisor is great value, stay close to them. Expect a review every year and do not be scared to question decisions. That’s why you are paying them a fee.
A word to the wise, avoid spread betting accounts and steer clear of salesmen pretending to be financial advisors, often they are not qualified and don’t know themselves what they are putting your money in to. Hidden fees and severe penalties are the name of the game here.
With thanks to Jason Cook CFP. Visit www.financial-advice.ae.