6 steps to saving money in the UAE

As we head into the UAE’s long summer, it’s a great time to start saving. Lee Carey, partner in The Wealth Practice at Holborn Assets in Dubai, explains exactly why you should start putting away money… now.

Step one:  Start
The hardest part of starting to save is exactly that: starting. You need to get used to putting money away each month, as hard as you may think that sounds right now. But the earlier you start, the less you have to put away to achieve your future goals – the magic of compounding (interest on interest) will deliver impressive growth on the money you put away first.

The “cost of delay” could be staggering. For example, if you are 40 and plan to retire at 65 with a pension pot of US$500,000, then you would need to save US$783 per month. If you waited until you were 50 then, you’d need to save US$1,813. Big, big difference.

Step two: Automate
The key to regular saving is to automate the process, so that the money goes out of your account on a monthly basis. Set up a standing order for just after you get paid so you can only spend what’s left. Once it’s gone, it’s gone – but, importantly, it’s gone to you.

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