Financial Planning In UAE
For a lot of people in their later years, where they have put to rest of the expenses that have to do with their children, and become able to buy a house and a car while still working, adequate financial planning can make all the difference to living a comfortable life and making the most out of your savings.
This by no means suggests that financial planning cannot benefit those that do not fall in this exclusive group, rather that in general, this group will have the most to put aside.
In the UAE, the imminent application the value added tax, certain economic reforms, and the inflation situation during the last few years make now a ripe time to think about saving and investing as much as possible, while minimizing expenses.
The most important most investors or businessmen would otherwise see professionals for is the determination of net worth. In essence, this is an accurate reflection of all the owned assets, including the houses, cars, bank accounts, and pension plans minus debt and liabilities.
The other key area to go over is budgeting. A lot of people may see this as a tedious process that will not make a material difference to their overall financial situation.
This is a big mistake because although it may not do anything for you within the next few months, it is the best thing you can do for you and your family in the long haul.
It entails knowing exactly what your significant expenses comprise of, what percentage of your income you save, and how this can be increased.
In the regular state of affairs, the number of potential unforeseen expenses increases with age, especially as the variety of obligations to children and parents increase.
An emergency fund not only helps deal with these situations, but also provides a peace of mind. The useful feature is that unless emergencies strike along the way, you will only need to set it up once, and perhaps contribute to it annually.
A recommended starting point as part of your general financial planning in UAE - GlobalEye UAE is putting aside at least two months of your salary.
The older you get, the more pressing the need to get rid of the bad debt plaguing your finances. While many people look at credit cards and other such avenues as facilities, all in all, they present themselves as non-essential features that eat into your income as they accumulate.
Take the opportunity to clear these as soon as you can, while considering the option to unsubscribe from credit cards and borrowing altogether.