Gary Clement for The National
Gary Clement for The National

Even a girl should stick to her budget



"I only eat out. I can't make a meal for less than what I pay at a restaurant."
This person is a single mother of two, works all hours and wants to give her children a lot more than love - she wants to buy them things to show how much she loves them. She buys herself things too, because she's worth it. Or as she put it, "because I'm a girl".
This last comment was in response to her being asked who's the boss - her or her money.
She insisted that she is the boss. That she only deals with a set amount of cash every month - that she is in total control.
Then: "Do you stick to your budget?"
"Well, when I go to the mall, if I see something I like, I use my credit card. After all, I'm a girl," she says. Smile, shrug shoulders in a "you know what I mean" hapless way.
Yes I know what she meant. And no, it's got nothing to do with being a girl.
This happened during a financial empowerment workshop I was running. Unfortunately, this person is not unique in her conflicting approaches and justifications.
She budgets. Has fixed cash to use for any one month. But whips her card out when something takes her fancy.
Money is tight. She is concerned about her and her children's well-being and future. But every meal is cooked by a restaurant.
How does this tally? It doesn't.
It culminates in this - she wants to spend more time with her children, but has to spend many an hour away from them earning - so that she can afford what, exactly?
So she can afford the lifestyle she has chosen for herself and her family.
She is not alone in this struggle of being blind to the obvious.
Being a "girl" doesn't seem to help either. But this person's comments have nothing to do with gender and everything to do with social conditioning.
Unfortunately, it appears that future women could have "because I'm a girl" embedded in their behavioural psyche too if my visit to a leading private school in the United Kingdom is anything to go by.
I was taken to see the girls' dormitory (this was a boarding school) and was greeted by a sea of lilac. It was everywhere. The walls, the bed covers, pillow cases - lilac was definitely someone's favourite colour. And there, hanging in pride of place in the centre was a giant poster. The (lilac) words stood out in bold and stated very emphatically:
STAY CALM and GO SHOPPING.
I wonder how many impressionable pre-teen students there are going to grow into shoulder-shrugging, retail-going "girls" who cannot get a handle on their financial life?
Financial basics are the same, regardless of gender.
And, dare I say it, financial planning is simple. But it's very, very difficult. Simple is not easy.
The key to a financially stable, peaceful life is: spend less, save more. And most certainly, live within (beneath is even better) your means.
But to do it means soul-searching, knowing yourself, defining your values and deciding on priorities. That's the difficult part.
It involves answering a very important question: Why? Why do you want to spend on X? What's the trade-off? And there's always a trade-off.
It's when you drill down and have to justify spend that things get messy.
If the struggling mother of two's priority is having more time with her children, then how about finding great online recipes, planning meals for a week and using the budgeted minimum of Dh150 every evening on restaurant food to set up her kitchen, then cook with her children? What would she get in return? Basic things such as meals and memories. And money left over too, I'm sure.
Is she going to struggle? Yes - being honest with herself about her pattern of behaviour and what it does to her family's life, then changing it will be a mammoth task.
Looking at what she means by budget is another issue - setting money aside for specific things isn't what I'm talking about. Looking at every thing that's being bought or paid for, deciding whether it is what's best for her life and walking away from impulse buys is what she needs to do.
We can all see how this is change for the better. But when it comes to ourselves, it can be a battle.
Self-reflection and deliberate decisions are the way to get to the bottom of a lot of things. It's easier to busy ourselves out of doing it.
So I'm inviting you to spend this next week asking why. Why do you need to spend on the things you spend on?
What would happen if you didn't?
Nima Abu Wardeh is the founder of the personal finance website cashy.me. You can reach her at nima@cashy.me and find her on Twitter at @nimaabuwardeh
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August 20
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How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The five pillars of Islam

1. Fasting

2. Prayer

3. Hajj

4. Shahada

5. Zakat 

How much do leading UAE’s UK curriculum schools charge for Year 6?
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  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
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*Annual tuition fees covering the 2024/2025 academic year

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Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

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It brought together 25 state-owned and independent companies specialising in weapons systems, cyber protection and electronic warfare.

Edge has an annual revenue of $5 billion and employs more than 12,000 people.

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The bio

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Role Models: Mark Zuckerberg and Elon Musk

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