Whether out of choice or necessity, many people spent less money in the past 18 months on things such as travel, entertainment, clothes and furniture.
For some, that meant holding on to more of their income. If you were able to save some cash, you have set yourself up to withstand future financial crises, especially if you can continue saving.
Keep growing your bank balance with these four pandemic-driven saving habits.
Re-evaluate spending
Consider whether some of the purchases you may have gone months without are necessary going forward. Or rethink how often you want to make them compared with before.
For example, if you started to work from home, you might have saved money by making your lunch instead of eating out. If you return to the office, you could continue saving by bringing lunch from home at least a few times a week.
“Since we were all stuck at home, I did not have many opportunities to go shopping or dine out. So, I saved the money,” says Vida DeOliver, a jewellery designer and owner of Vidart & Life Boutique, an online store in New Jersey in the US. “I saved more during the pandemic than I had prior.”
These days, she has more in-person spending opportunities but is keeping the saving habit, Ms DeOliver says.
“When I go shopping, I ask myself if a purchase is really necessary, or if I could hold on to the money and save it for something I would really like later,” she says.
When I go shopping, I ask myself if a purchase is really necessary, or if I could hold on to the money and save it for something I’d really like later
Vida DeOliver,
jewellery designer
Delay big-ticket purchases
Make yourself wait before committing to expensive purchases. At the beginning of the Covid-19 pandemic, out-of-stock inventory and supply challenges meant that some people did not have a choice about waiting before ordering big-ticket items such as kitchen appliances, furniture and electronics.
But learning to wait before spending money can be a smart choice anytime, helping you avoid the kind of impulse that can upend savings plans.
“I always try to delay purchases for a few days to see if I really want something before I buy, but the pandemic shortages really helped me figure out what I needed and what could wait,” says Eric Chow, a podcaster and public relations professional in Union City, California.
Today, he makes a point of waiting a few days before pressing the “buy” button on items large and small, from electronics to wallets. And then?
“If I really want it, I will know it is worth the wait, and if I don’t, I can forget about it and move on,” he says.
Automate saving
If you were able to save during the early part of the pandemic, one reason may be that it did not require much effort. You stayed home. Voila – savings.
You can keep saving a low-effort endeavour by using automatic transfers to move money into a savings account at regular intervals.
“Set up an automatic transfer so your savings funnels to a separate account each pay period. This way, your savings are the automatic priority. And it gets you accustomed to relying only on the remaining amount,” says Regan Ervin, an investment adviser and founder of Capital E Advisers in Kansas.
Set clear emergency saving goals
The pandemic turned emergency savings from a hypothetical nice-to-have into a must-have. If you haven’t already, take a moment to seriously evaluate your essential expenses and set a clear emergency fund goal.
Make it a habit to review your essential expenses regularly to see if you need to adjust your savings target.
I always try to delay purchases for a few days to see if I really want something before I buy
Eric Chow,
podcaster and public relations professional
A common guideline is to have three to six months’ worth of expenses saved for emergencies. If that seems daunting, start with a smaller goal – say, $500. Chip away at that goal as best you can, even if it is in $5 increments.
You can grow your money with no extra effort if you put it in a high-yield savings account.
If you are fortunate enough to save money, adopting these habits can help you hold on to your funds and save even more, preparing you for whatever the future holds.
Associated Press
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Floward%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EAbdulaziz%20Al%20Loughani%20and%20Mohamed%20Al%20Arifi%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EE-commerce%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3EAbout%20%24200%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAljazira%20Capital%2C%20Rainwater%20Partners%2C%20STV%20and%20Impact46%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E1%2C200%3C%2Fp%3E%0A
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
