Working in real estate sales in Dubai, Sunny Savani does not earn a consistent income every month. Some months, he may earn in excess of Dh100,000 ($27,225) and in others it could be nearer Dh20,000.
This has convinced the British expat, 31, of the need for a safety net to fall back on. He saves nearly half his income every month and has a year's worth of expenses in his emergency fund.
Mr Savani, who comes from Wellingborough in England, completed his degree in management and marketing in the UK and moved to Dubai in 2021.
He currently lives in the Burj Khalifa in Dubai with his wife and three kids.
What was your first job and salary?
I've been working since the age of 13 or 14 doing a paper round in the UK. I was earning around £4 or £5, which is equivalent to Dh20 an hour.
When I graduated from university, I worked with one of the biggest medical recruitment agencies in the UK. I used to recruit doctors and nurses for the National Health Service and my salary was £16,000 ($20,102) a year in 2014. I worked there for about eight or nine years and worked myself up in terms of managing different departments and setting up divisions for other companies. For two and a half years, I had my own business recruiting doctors internationally and putting them in roles within the NHS.
How did you get into property?
I had friends in real estate in Dubai earning good money. When Covid-19 struck, the medical recruitment sector slowed down. I was looking at my options. I had frequently visited Dubai for holidays.
One of my friends suggested I consider real estate since it uses a similar skill set to what I used to do in terms of talking to people, and had an element of sales. In Dubai, it's tax-free and one of the most dynamic real estate markets in the world. So, I ended up learning the whole sector from scratch when I moved in 2021.
What is your salary now?
Real estate here is commission-only. When I moved here, I started off doing high-end rentals for the first six months. On average, I earned Dh15,000 to Dh20,000 a month when I first started off. As I was doing more high-end rentals, sometimes that could be Dh30,000 or Dh40,000 a month.
I moved to sales in 2022 and earned about Dh500,000 to Dh600,000 that year. I had another good year in 2023 where I ended up making around Dh700,000, and then this year, on average, I earned between Dh40,000 and Dh50,000 a month. It fluctuates. Sometimes, I could take home Dh100,000 to Dh200,000 a month or even Dh20,000 to Dh30,000.
I currently work as an associate director with Savills. I predominantly deal in prime and super-prime waterfront properties and penthouses, which have a minimum ticket price of Dh15 million or Dh20 million and go up to Dh65 million to Dh70 million.
But it's a job where you can't switch off. You work seven days a week, 24 hours a day. Give a good service, be dedicated, and don't try to take shortcuts to be successful in this role.
Do you manage to save?
I always like to have a philosophy of at least putting 40 per cent or 50 per cent of what I earn into savings as a safety net. On average, I currently have around Dh700,000 to Dh800,000 in savings.
What asset classes do you invest in?
I always like to play safe. I'm not a massive risk taker, so a lot of my money is in fixed deposits, which is safe though it does not offer big returns. I also invest in stocks and exchange-traded funds. I allocate 5 per cent to 10 per cent in higher-risk assets such as cryptocurrency.
I invest in stocks of big companies like Apple, Google and Meta, and in healthcare and technology firms. I invest through platforms such as eToro as I like to be in control of where I put my money.
Have you purchased property here or in the UK?
I’m in the process of buying one or two investment properties in the UK. I'm not sure how long I'll be in the UAE. If I know I am going to be here for the next 10 or 20 years, I would buy but because I have a young family, the UK will always be home. So renting gives me the flexibility of not tying up too much cash here, especially while the market is high.
Do you have any debt?
I like to stay debt-free. So if I buy cars, I normally do so without finance. I have two small credit cards, which I rarely use, but when I use them I like to clear them in full the following month.
Growing up, were you taught how to handle your finances?
We came from a very middle-class background. I have three brothers and a sister. We were working-class people in the UK, so I saw my parents’ struggle to put food on the table and give us a good upbringing and good education.
Understanding that made me realise the importance of saving and making sure that even though it's tempting when you earn a lot, you should treat yourself only after you put money aside for your expenses and savings.
What are your major monthly expenses?
Rent, kids’ education and day-to-day spending.
How do you budget?
If I earn a ballpark figure of, let's say Dh100,000 a month, 50 per cent will go into savings. I also try to pay my rent in one or two cheques, so that's out of the way. About 20 per cent to 30 per cent of my earnings would go towards expenses and then whatever is left will be used on going out or luxuries.
Have you started saving for retirement?
I save for two things. One is, if I ever move back to the UK, I need a safety net. I would also love to be in a position where by the time I'm 45 or 50, I don't have to work as hard, because it's quite a tiring and demanding job in real estate, and enjoy life with my wife and family.
Do you have an emergency fund?
Yes, if I lost my job or didn't earn for a year, I keep a safety net of at least a year's worth of expenses.
What do you spend your disposable income on?
Cars and watches are a big passion. My disposable income goes on them.
Do you worry about money?
I do worry because of the nature of my job. Since I don't have a regular income, I’m always worried about what would happen if I don’t earn money for a few months, regardless of my savings. I don't want to dip into my savings.
Dubai is getting very popular due to which the population and rents are increasing. Fortunately, we are in a position where we have savings and a safety net, so we shouldn't worry about it too much.
What are your financial goals?
Short term, I want to acquire at least one or two rental properties in the UK and maybe one as an investment in Dubai next year.
Long term, I'd like to have a portfolio where eventually I won't have to work because the rental income sustains my expenses.
What is your idea of financial freedom?
I am a family person, so to me financial freedom means being able to spend as much time with my family without having to worry about money. To be in a position where I can go on holidays when I want and have a mortgage-free house.
What is your money-saving hack to beat inflation?
Property is a safe bet. With inflation coming up, there's a shortage of housing in most places. So get on the property ladder, if you have the ability to, sooner than later.
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