When Kirke Williamson first bought an apartment she  got a credit card with a ?1,000 limit, but I found it took her 12 months just to pay off the interest.
When Kirke Williamson first bought an apartment she got a credit card with a ?1,000 limit, but I found it took her 12 months just to pay off the interest.

How Marx influenced my spending



Until Estonia separated from the USSR in 1991, this housewife never had a bank account or credit card. There were few products to buy and most citizens lived frugally. Now, in Abu Dhabi, she and her family live simply and avoid debt, and plan to teach their son the value of a dirham In Estonia, where I come from, society isn't eager to save. Everything costs a lot and people want to live a lifestyle that they really cannot afford - better clothes, bigger televisions and a better car.

I fell into that lifestyle a little bit, but things are different now. In Estonia I was earning my own money as a transport and logistics engineer. When I moved to Abu Dhabi in June this year with my husband, Graham, a freelance engineering consultant, and my son Thomas,3, I stopped working. I'm now 31 years old. I'm still not used to not having my own money. It feels weird to just spend your husband's money. I feel more accountable. I think twice about buying clothes or anything big. And being a mother, I think more about the future. Thomas needs a good education and we have to put money away for that.

Estonia got its independence from the USSR in August 1991, but changes started a year earlier. Under communism it was a cash society. There was a central bank but no ATMs. Estonians were paid in cash and what little savings they had were kept at home. There was not much to buy and the average person didn't have the money to buy a lot anyway. People all wore the same clothes because there was no choice.

I think money was less important at that time. People didn't have high demands or dreams for material things. They just accepted what was there. There wasn't the competition about looking better or getting a better car. When things first came into the shops it all happened very quickly. One day there were no bananas, then next day there were bananas and other fruit. But you could buy them only with foreign currency. The old currency, the rouble, was practically worthless.

People preferred to use the Finnish mark, the Swedish crown or the US dollar. I remember when my friend's father did some piano teaching in Finland and sent some money home. We went out and bought a Sprite soft drink. It was my first taste of the West. I was 12 or 13 when the change began and I started to notice material things. Before this time I was given a very small amount of pocket money every week. I can't remember how much - enough to buy an ice cream or some sweets.

I started to work when I was 15 or 16 during summers when I was still at school. I was always encouraged if I wanted my own money to go and earn it instead of asking for it. It's something I will do with my son when he's 14 or 15. I worked in stores. I can't remember what I earned. It wasn't much, and at that time I spent money mostly on clothes and going out. I opened my first bank account when I was 17. My parents gave me some money to put in the bank and it was only then I realised that I could save money from one month to the next and buy something big. In 1997 I finished secondary school and went to Tallinn Technical University, located in Estonia's capital, and studied transport technology. I was there five years, working part-time at a call centre and as a merchandiser in stores. It was good money at the time, about US$200 (Dh735) a month.

The state provided free university education if you passed entrance exams and the school provided most of the books. I lived at home and the money I earned was spent partly on textbooks, but mostly on clothes and going out. There was no savings. In 2002 I started my master's degree in transport technology at the university. At the same time I held jobs as a marketing manager assistant in a travel agency and as a merchandiser with a tobacco company. I was earning more, about $800 a month, but spending more, too, living the life, eating out, going out with friends, buying things.

I was still living at home. In 2004 things changed a bit, when I bought an apartment. A friend lent me the 10 per cent deposit I needed, and because I had a university education and was under 33 I could apply for special financing as part of a government initiative. The apartment in Tallinn cost $37,000. At that time the interest was 6.8 per cent. It is now much lower. At first it was hard paying it off, as 40 per cent of my salary was spent paying the mortgage.

We still have the apartment and a small mortgage balance on it. I don't rent it out while we are here because you never know who your tenants will be, and right now in Estonia there is a huge number of apartments available, so rents are so low. In 2004 I finished my master's and went to work at a bus company, and then the ministry of transport. From there I went to a consulting company, Swech Project. I worked in the infrastructure division where I met my husband, a freelance consultant.

I was living in my apartment when I met Graham. My apartment was very old and needed renovating. Graham was living in a penthouse in a posh area of Tallinn, paid for by his company. So I moved in with him. I rented the apartment to a student for a minimal amount because I still didn't have the money to renovate it properly. I moved in with Graham in February 2005 and our was born in July 2006. Graham was working in Albania by this stage. After Thomas was born we moved to Albania for nine months, and while we were there we renovated my apartment.

When we returned to Estonia I went back to work at Swech Project as an engineer and started lecturing at the Tallinn university. I was earning about Dh1,300 a month at the time, but there was nothing left after paying the mortgage, private nursery fees and other bills. I think the free spending I indulged in when I was younger was influenced by the pressure of society to have certain things, like nice clothes and meals in restaurants. Maybe this was because for so long under Communism in Estonia there was nothing, or maybe it's just the way the world is now. I'm not sure.

In my 20s I would spend between $15 and $20 going out for an evening. Now I go out rarely, but when I do go out back in Estonia, I spend about $60 an evening. In Abu Dhabi, going out as a family is more expensive. For instance, brunch costs us around Dh600. Groceries are more expensive here, too. I spend between Dh500 and Dh600 a week on basic food, while in Estonia I usually spent between Dh300 and Dh400.

I think I count money more now. I have to report to the centre of finance - my husband - about where the money went. The only debt I have is a small mortgage on the apartment back home. I don't like credit cards. When I first bought the apartment I got a credit card with a ?1,000(Dh5,367) limit, But I found I could not pay it back. I spent 12 months just paying off the interest. One thing I will teach Thomas is to spend only what you have.

* As told to Jane Williams

How to avoid crypto fraud
  • Use unique usernames and passwords while enabling multi-factor authentication.
  • Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
  • Avoid suspicious social media ads promoting fraudulent schemes.
  • Only invest in crypto projects that you fully understand.
  • Critically assess whether a project’s promises or returns seem too good to be true.
  • Only use reputable platforms that have a track record of strong regulatory compliance.
  • Store funds in hardware wallets as opposed to online exchanges.
The specs
Engine: 2.4-litre 4-cylinder

Transmission: CVT auto

Power: 181bhp

Torque: 244Nm

Price: Dh122,900 

UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A
Company%20Profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3ENamara%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3EJune%202022%0D%3Cbr%3E%3Cstrong%3EFounder%3A%20%3C%2Fstrong%3EMohammed%20Alnamara%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EDubai%20%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EMicrofinance%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%20%3C%2Fstrong%3E16%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3ESeries%20A%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFamily%20offices%0D%3Cbr%3E%3C%2Fp%3E%0A
MATCH INFO

Manchester City 1 Chelsea 0
De Bruyne (70')

Man of the Match: Kevin de Bruyne (Manchester City)

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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.”

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Revibe%20%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Hamza%20Iraqui%20and%20Abdessamad%20Ben%20Zakour%20%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Refurbished%20electronics%20%0D%3Cbr%3E%3Cstrong%3EFunds%20raised%20so%20far%3A%3C%2Fstrong%3E%20%2410m%20%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EFlat6Labs%2C%20Resonance%20and%20various%20others%0D%3C%2Fp%3E%0A