The world is an uncertain place, which can cause fear and even panic. When people panic, they make choices that are less than optimal but we can fight back against these urges. One of the best ways to feel a bit more in control is by saving money. Building up a stash of cash can give us choices when we feel like everything else is falling apart. At the very least, it can help us feel a little less anxious about one very important element of our lives.
Saving money right now also allows you more choices later on, as it gives you a back-up plan in case you need one.
As places and activities shut down around us to protect us from the coronavirus, this presents us with a multifaceted opportunity. Less things to do gives us less things to spend our money on. Our behaviour is often dictated by our environment, and shopping is definitely one of those behaviours. Covid-19 has changed our environment, and for those with out-of-control spending habits, this can be a great opportunity to switch your behaviour to the more frugal side.
Instead of shopping, read a book, listen to a podcast or catch up on that Netflix show you've been meaning to see. Rather than going out to eat, cook for your family. To replace the gym and fitness classes, take a walk around the neighbourhood, visit a park or go for a run. All of these behaviours will help you develop good habits whether there's a pandemic or not, perhaps except for Netflix, but, hey, a little distraction won't hurt you in these times.
Focusing on these free activities will not only help you now, but also in the future as you develop lasting habits that will make you happier, healthier and wealthier down the road. By breaking your shopping habit now, you can realise that happiness doesn't have to come from swiping your credit card. Lasting happiness comes from pursuing your purpose, learning, exercising, appreciating your loved ones and enjoying art.
Saving money right now also allows you more choices later on, as it gives you a back-up plan in case you need one. For me, I'm supposed to move to China in July to teach there for the next two years. All signs point to that still happening, as of today, but a niggling part of my mind is worried that with all this uncertainty, I won't have that opportunity. So instead, I'm saving my cash.
I already have enough set aside to live off for one to three years, depending on where I spend my time. I won't have to sell any of my investments, which have lost value due to the market's recent volatility. While I don't know that this will fix all my problems, it certainly helps me sleep better at night knowing that I'll be OK for the foreseeable future.
The other great reason to save money right now is to take advantage of investment opportunities later. Stocks, bonds and real estate have been priced quite high in many markets around the world. After a panic sell-off, if you have a large cash position, you can be in a great place to invest when things are cheaper. As the old expression goes: "When there's blood on the streets, buy property." People who survived the last crash of 2008 are those that bought when the market was low and gained a huge amount in those following years.
While it's important to stay informed on this rapidly developing situation, obsessing over it will only increase your anxieties. When you're anxious, that's where advertisers want you, because you're not thinking clearly or logically. You're more likely to buy their products, even if you don't need it or can't really afford it. That's another reason to try to find activities that keep you from focusing exclusively on the dangers of an uncertain world.
Also, remember to be grateful. Your friends and family are hopefully still there for you. Food is still delicious. The sky is blue. Remembering these things can keep you from the darkness that can cause you to spend too much money in retail therapy.
Saving more money now can benefit us in multiple ways. Hunker down. Stay safe. Store your money.
Dubai schoolteacher Zach Holz (@HappiestTeach) documents his journey towards financial independence on his personal finance blog The Happiest Teacher
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.”
How it works
Each player begins with one of the great empires of history, from Julius Caesar's Rome to Ramses of Egypt, spread over Europe and the Middle East.
Round by round, the player expands their empire. The more land they have, the more money they can take from their coffers for each go.
As unruled land and soldiers are acquired, players must feed them. When a player comes up against land held by another army, they can choose to battle for supremacy.
A dice-based battle system is used and players can get the edge on their enemy with by deploying a renowned hero on the battlefield.
Players that lose battles and land will find their coffers dwindle and troops go hungry. The end goal? Global domination of course.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
MATCH INFO
Tottenham Hotspur 3 (Son 1', Kane 8' & 16') West Ham United 3 (Balbuena 82', Sanchez og 85', Lanzini 90' 4)
Man of the match Harry Kane
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THE BIO
Ms Al Ameri likes the variety of her job, and the daily environmental challenges she is presented with.
Regular contact with wildlife is the most appealing part of her role at the Environment Agency Abu Dhabi.
She loves to explore new destinations and lives by her motto of being a voice in the world, and not an echo.
She is the youngest of three children, and has a brother and sister.
Her favourite book, Moby Dick by Herman Melville helped inspire her towards a career exploring the natural world.
