If you don't have it, don't spend it. You'll never get out of debt by borrowing more.
How simple is that?
But do you live by this code? Chances are you don't. We carried out a survey on my financial empowerment website asking if people kept a budget. More than 55 per cent of those who responded said no, they do not keep one. The real figure is probably a lot higher because people visiting my website are looking at money and life issues and addressing them, and so are more likely to have money habits that help them keep abreast of their finances than the average person is.
If you don't know what you have coming in and going out, how can you begin to know what you can afford?
I'm not talking about major life purchases, like a home, I'm talking about how you go about spending on everyday things. And going by data released from the Central Bank last month, stating that lenders in the country provided more credit in June this year than at any time since 2011, it's safe to say that there's an alarming increase in the number of people who are risking a lot more than being clobbered with high interest rates. I believe their very existence is at risk.
Personal debt is growing here in the UAE. From the end of 2007 to the end of 2008, debt grew by 50 per cent, and has continued to increase steadily since. Personal debt is now 57 per cent higher than 2007 levels. These are Central Bank figures once more, and include loans, advances and overdrafts to residents.
This year, there has been an increase in these figures every month. And I find this extremely alarming.
So what can you do about it?
Don't spend money before you have it.
This is what nearly every single person I've ever talked with about money, life, budgeting and so on does: they roughly work out what they earn vs what they spend - you can see the wheels whirling as they carry out this mental arithmetic, and then the "Oh my" moment happens when they realise that the way they live is simply not sustainable. Then their next thought is ... wait for it ... "Oh, so I need to earn X amount to be able to live like this!"
X being more than their current salary Y.
Yes. This is, in essence, true. That many people's earnings need to significantly increase in order for them to be able to afford their way of life. But. This is absolutely the wrong way to think and go about things.
Why? Well, first of all, just because you decide that you need salary X doesn't make it magically happen. In fact, with ongoing regional unrest and political conflict I'd say chances are that there is a growing queue of talented people willing to fill your shoes - for less than you currently earn - or perhaps your company could decide to pull out of certain places in the region and scale back its presence generally.
The point is, nothing in life is guaranteed. You cannot take for granted that your current job will be open to you for any period of time, plus, you also need to take on board that anything - absolutely anything - could happen to you that takes away your ability to function as you currently do in the long run, or even with immediate effect. This could be good news - such as: "Congratulations, you're expecting twins". Or bad news: you becoming incapacitated, for example.
So, my first message is simple and two-fold:
Live within your means. And, tomorrow always comes.
And when that tomorrow comes, and you don't have the paycheque you banked on to bankroll your life, you're in trouble, pal.
If you know what you earn (presumably you do) then you need to use this as your starting point. So how about working with that lump sum, and subtracting from it what you need to cover your essential, basic expenses, such as housing, utilities, food, school fees, and various insurance policies? In other words, draw up what you spend on what you need, then look at what you want and like for yourself.
It's great to have confidence in the future - but to gamble on the next paycheque always coming in to make ends meet - no, that's not a way to live.
My next thought is: how about living below your means?
Meaning, great if you are not spending more than you earn, well done! But. You really need to be putting money aside. The aim is to live well now, and in the future.
What is your UAE dream? Is it to have a great time in the sun, enjoy life and still look after the future - or throw caution to the wind and blow it all on the moment?
We'd all do well to remember what brought us out here in the first place: the UAE dream - work out what yours is, and stick to it - lest it becomes the beginning of a nightmare.
Nima Abu Wardeh is the founder of the personal finance website www.cashy.me. You can contact her at nima@cashy.me
UAE'S YOUNG GUNS
1 Esha Oza, age 26, 79 matches
2 Theertha Satish, age 20, 66 matches
3 Khushi Sharma, age 21, 65 matches
4 Kavisha Kumari, age 21, 79 matches
5 Heena Hotchandani, age 23, 16 matches
6 Rinitha Rajith, age 18, 34 matches
7 Samaira Dharnidharka, age 17, 53 matches
8 Vaishnave Mahesh, age 17, 68 matches
9 Lavanya Keny, age 17, 33 matches
10 Siya Gokhale, age 18, 33 matches
11 Indhuja Nandakumar, age 18, 46 matches
Rebel Moon – Part Two: The Scargiver review
Director: Zack Snyder
Starring: Sofia Boutella, Charlie Hunnam, Ed Skrein, Sir Anthony Hopkins
Rating: 2/5
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
'Gold'
Director:Anthony Hayes
Stars:Zaf Efron, Anthony Hayes
Rating:3/5
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
How will Gen Alpha invest?
Mark Chahwan, co-founder and chief executive of robo-advisory firm Sarwa, forecasts that Generation Alpha (born between 2010 and 2024) will start investing in their teenage years and therefore benefit from compound interest.
“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.
Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.
He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.
Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”
THE APPRENTICE
Director: Ali Abbasi
Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong
Rating: 3/5
A QUIET PLACE
Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou
Director: Michael Sarnoski
Rating: 4/5
The new Turing Test
The Coffee Test
A machine is required to enter an average American home and figure out how to make coffee: find the coffee machine, find the coffee, add water, find a mug and brew the coffee by pushing the proper buttons.
Proposed by Steve Wozniak, Apple co-founder
The specs
Engine: Dual permanently excited synchronous motors
Power: 516hp or 400Kw
Torque: 858Nm
Transmission: Single speed auto
Range: 485km
Price: From Dh699,000
Jordan cabinet changes
In
- Raed Mozafar Abu Al Saoud, Minister of Water and Irrigation
- Dr Bassam Samir Al Talhouni, Minister of Justice
- Majd Mohamed Shoueikeh, State Minister of Development of Foundation Performance
- Azmi Mahmud Mohafaza, Minister of Education and Minister of Higher Education and Scientific Research
- Falah Abdalla Al Ammoush, Minister of Public Works and Housing
- Basma Moussa Ishakat, Minister of Social Development
- Dr Ghazi Monawar Al Zein, Minister of Health
- Ibrahim Sobhi Alshahahede, Minister of Agriculture and Minister of Environment
- Dr Mohamed Suleiman Aburamman, Minister of Culture and Minister of Youth
Out
- Dr Adel Issa Al Tawissi, Minister of High Education and Scientific Research
- Hala Noaman “Basiso Lattouf”, Minister of Social Development
- Dr Mahmud Yassin Al Sheyab, Minister of Health
- Yahya Moussa Kasbi, Minister of Public Works and Housing
- Nayef Hamidi Al Fayez, Minister of Environment
- Majd Mohamed Shoueika, Minister of Public Sector Development
- Khalid Moussa Al Huneifat, Minister of Agriculture
- Dr Awad Abu Jarad Al Mushakiba, Minister of Justice
- Mounir Moussa Ouwais, Minister of Water and Agriculture
- Dr Azmi Mahmud Mohafaza, Minister of Education
- Mokarram Mustafa Al Kaysi, Minister of Youth
- Basma Mohamed Al Nousour, Minister of Culture
ABU DHABI'S KEY TOURISM GOALS: BY THE NUMBERS
By 2030, Abu Dhabi aims to achieve:
• 39.3 million visitors, nearly 64% up from 2023
• Dh90 billion contribution to GDP, about 84% more than Dh49 billion in 2023
• 178,000 new jobs, bringing the total to about 366,000
• 52,000 hotel rooms, up 53% from 34,000 in 2023
• 7.2 million international visitors, almost 90% higher compared to 2023's 3.8 million
• 3.9 international overnight hotel stays, 22% more from 3.2 nights in 2023
The specs
Engine: 6.5-litre V12 and three electric motors
Power: 1,015hp
Torque: 1,500Nm (estimate)
Transmission: Eight-speed dual-clutch auto
On sale: Early 2024
Price: From Dh2 million (estimate)
Specs: 2024 McLaren Artura Spider
Engine: 3.0-litre twin-turbo V6 and electric motor
Max power: 700hp at 7,500rpm
Max torque: 720Nm at 2,250rpm
Transmission: Eight-speed dual-clutch auto
0-100km/h: 3.0sec
Top speed: 330kph
Price: From Dh1.14 million ($311,000)
On sale: Now
MEDIEVIL (1998)
Developer: SCE Studio Cambridge
Publisher: Sony Computer Entertainment
Console: PlayStation, PlayStation 4 and 5
Rating: 3.5/5
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
TV (UAE time);
OSN Sports: from 10am
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
UAE currency: the story behind the money in your pockets
FROM THE ASHES
Director: Khalid Fahad
Starring: Shaima Al Tayeb, Wafa Muhamad, Hamss Bandar
Rating: 3/5
Studying addiction
This month, Dubai Medical College launched the Middle East’s first master's programme in addiction science.
Together with the Erada Centre for Treatment and Rehabilitation, the college offers a two-year master’s course as well as a one-year diploma in the same subject.
The move was announced earlier this year and is part of a new drive to combat drug abuse and increase the region’s capacity for treating drug addiction.
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
The specs
Engine: 6.2-litre V8
Transmission: seven-speed auto
Power: 420 bhp
Torque: 624Nm
Price: from Dh293,200
On sale: now
Teams
Punjabi Legends Owners: Inzamam-ul-Haq and Intizar-ul-Haq; Key player: Misbah-ul-Haq
Pakhtoons Owners: Habib Khan and Tajuddin Khan; Key player: Shahid Afridi
Maratha Arabians Owners: Sohail Khan, Ali Tumbi, Parvez Khan; Key player: Virender Sehwag
Bangla Tigers Owners: Shirajuddin Alam, Yasin Choudhary, Neelesh Bhatnager, Anis and Rizwan Sajan; Key player: TBC
Colombo Lions Owners: Sri Lanka Cricket; Key player: TBC
Kerala Kings Owners: Hussain Adam Ali and Shafi Ul Mulk; Key player: Eoin Morgan
Venue Sharjah Cricket Stadium
Format 10 overs per side, matches last for 90 minutes
Timeline October 25: Around 120 players to be entered into a draft, to be held in Dubai; December 21: Matches start; December 24: Finals