My Abu Dhabi Salary: 'I saved 65 per cent of my income and became financially free at 42'

Blair Hoover and her husband consistently saved and invested their income for eight years

Blair Hoover says her family could possibly pay cash for a home if they continue growing their assets. Victor Besa / The National

Blair Hoover, an American who lives in Abu Dhabi, does not worry about earning money now since she and her husband, a graphic designer, achieved financial independence a year ago.

She runs a personal finance consultancy but works part time only on her business as the couple does not have financial pressure.

“Currently my husband’s salary covers our living expenses, but we could also live off of our investments if we wanted or needed to. We both are working because we want to,” Ms Hoover, 43, says.

What was your first job and salary?

I started working at 14, cleaning tables in a local restaurant. I was paid $2.15 an hour, plus a cut of the servers’ tips. My first salaried job was as a logistics manager for a motivational speaking company, where I earned about $20,000 a year. With no savings to my name, and monthly student loan payments to make, I resorted to credit cards every time there was an unexpected expense despite my frugal lifestyle.

Over the next few years, I bounced around different jobs (construction, baking, art preparation and serving). I was never able to make ends meet. One particularly difficult February, I made the decision to go back to school to become a teacher, even though that meant more student loan debt. I started teaching in 2006, earning $29,000 the first year, but jumped to $37,926 after my master's degree was completed. Teaching enabled me to move to the UAE as part of the first wave of native English-speaking teachers in Abu Dhabi public schools in 2009.

What is your salary now?

In 2023, I founded Choose Your Own Finance, a personal finance consultancy where I help people to take charge of their financial lives. The business is two years old and at the beginning of its growth journey. Last year, I made a total of Dh10,000 ($2,722.9) after expenses. My goal is to multiply that number by 10 over the next 18 months. I’m on track to exceed last year’s revenue in the first three months of this year.

Do you save?

At the moment, I’m not saving at all because I’m reinvesting everything I earn into growing the business. But since my partner and I have been good savers, I don’t have to worry about income right now. We achieved this by consistently saving around 65 per cent of our income for eight years before I left my full-time teaching job in 2023.

A year ago, we hit our “FI number”, meaning we can live off of a small percentage of that for the rest of our lives without worrying about money.

What asset classes do you invest in?

My partner and I are fully invested in low-cost index funds that track the global market, along with a small portion in bond exchange-traded funds to protect against major market downturns. Our strategy has always been to aim for the average market return, and it's worked. Over the past 10 years, we’ve built our portfolio with a combined monthly income of around Dh50,000. Thanks to a high savings rate and disciplined investing, we were able to build financial freedom for ourselves.

Have you purchased property?

We’ve come close to buying property a few times here in the UAE, but after crunching the numbers, it didn’t make sense for us. We value flexibility and prefer the freedom to move when necessary. Owning a home would limit our ability to make those changes, so for now, we’re renting. If we continue growing our assets, we could possibly pay cash for a home when the time is right.

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Do you have any debt?

When I first arrived in the UAE, I had more than Dh110,000 in debt – mostly student loans and some credit card debt. It took me several years to pay it off, but since then, I’ve remained debt-free. Once you’ve experienced being in a debt spiral, you develop a strong aversion to it. Compound interest is a powerful force. It can work for you if you’re investing, as opposed to how it works against you when you’re in debt.

Growing up, were you taught how to handle your finances?

My dad listened to Dave Ramsey, but he didn’t implement any of the advice. There was a constant fear of running out of money. As a result, I inherited a fear-based mindset around money. I’ve had to do a lot of unlearning as an adult, especially when it comes to viewing money as a tool to create freedom and opportunity – not something to be afraid of. Money is morally neutral. Saving and spending are neither good nor bad.

What are your major monthly expenses?

Our largest annual expenses are rent (21 per cent of our budget) and my daughter’s school fees (16 per cent). We also spend about 16 per cent of our annual expenses on travel – something we value deeply as a family. When you are able to align your expenses with your values, managing money becomes a joyful exercise.

How do you budget your income?

I hate budgets in the traditional sense. Budgeting feels like dieting – it’s restrictive and doesn’t lead to lasting results. Instead, we focus on tracking our expenses retroactively. By being aware of where our money is going, we can make adjustments without feeling like we’re depriving ourselves.

Do you have an emergency fund?

Yes, we keep about two months’ worth of expenses in cash in the UAE, and I also have a small reserve in the US in case my family needs help. Since I left teaching, I’ve kept a little more in cash, but we don’t feel the need to keep a large emergency fund. We prefer to use “sinking funds” to save for specific, larger expenses like rent or school fees.

What do you spend your disposable income on?

Our biggest “luxury” expense is travel. We also enjoy eating out, but we tend to choose less expensive places. We’re regulars at Sangeetha in Abu Dhabi, and we love grabbing simple, affordable meals like omelette paratha or karak from local stands. We don’t believe in depriving ourselves of little pleasures, but we’re mindful about where we spend our money.

Do you worry about money?

Learning how not to worry about money has been a journey for me. I’ve worked hard to shift my perspective, and I now view money and spending as tools to create a fulfilling life. Moving from being a saver to someone who can comfortably spend has been an adjustment, but it’s been a necessary one. The goal isn’t to die with a big pile of money – it’s to live a rich, meaningful life now.

Blair Hoover says budgeting is restrictive and she instead focuses on tracking her expenses retroactively. Victor Besa / The National

What are your money-saving hacks to offset inflation?

Start by tracking your expenses. When you write down your spending, you start to see patterns and gain insight into where you can make changes. From there, focus on your largest expenses – things like housing, school fees, food and travel. Small tweaks can lead to big savings. For example, switching grocery stores or cooking more meals at home instead of ordering out can add up.

What are your financial goals?

In the long term, I want to grow my business to a point where it covers our family’s expenses. In the meantime, I’m focused on enjoying the freedom I’ve worked so hard for, and using my time to contribute to the community and help others.

What is your idea of financial freedom?

It is the ability to choose how you spend your time. Time is the most precious resource we have, and having control over how you use it is the ultimate freedom. My journey to financial independence has given me the luxury to prioritise my family and my passions.

Do you earn passive income?

After a year of travel in 2014, I discovered the Fire (Financial Independence, Retire Early) movement. It gave a purpose to saving and investing for me. My partner and I honed our expense-tracking skills and got serious about saving and investing. About nine years later, we hit our FI number, and now we have a portfolio that generates passive income potential. We’re not drawing from it yet, but it’s there, ready to support us if needed. If you start now, save aggressively and invest wisely, you can build passive income and achieve financial independence.

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