From marriage to starting a family, the big events are what make our lives so memorable. But paying for them can have far-reaching impacts, sometimes many years into the future.
That’s why it’s so important for UAE residents to plan for these occasions. Since you don’t want the memories of a happy occasion to be clouded by incessant worries, the best way forward is to be prepared. Read on to understand the best approach to some of life’s biggest events.
Settling down and starting a family requires a significant financial overhaul, not least because the cost of the wedding itself can set you back significantly (even if the cost is less now than it was before). If you’re going to have a large party or destination wedding, you’ll want to start saving up for it. A simple estimate of the total cost of your wedding, divided by the number of months ahead, will make it easier to pay your bills and flag up funding shortfalls.
Beyond that, consider your future life together. Once you’ve begun thinking about marriage, you’ll want to itemize and openly discuss combined finances, outstanding payments
The joy of a new baby brings with it several financial and lifestyle changes. Not only will do your everyday expenses increase dramatically, you’ll also need to think about school and college fees (particularly for a private education), childcare, holiday costs and pocket money. For each new child, recalibrate your budget to include these monthly outgoings, and map out an action plan to fund these expenses. Think about a second income stream, perhaps from an investment portfolio, and about squirreling money into a savings fund.
Buying a home may be the biggest purchase of your life and requires significant preparation. You can only take finance for up to 85% of the home’s value in the UAE, so think about your eligibility for home finance, your credit score, and if you can afford the down payment. Also factor in extras such as monthly outgoings and property takaful.
Then sit down with your bank or a financial advisor and discuss your options. Consider what assets could be repurposed towards the down payment and see if you’re eligible for a government program.
As many jobs become obsolete and newer roles are created to cater to the technological revolutions underway in our societies, workers at all levels will need to reorient their careers. The coronavirus pandemic has only accelerated this trend. However, a new kind of job may involve going back to school – and paying for the pleasure.
Ask if your company offers tuition reimbursement and if you’re eligible. Think about private finance and ask your college of choice about funding help and whether they can advise on scholarship opportunities
While few people like growing old, everybody looks forward to quitting the rat race and retiring. But without a job, you’ll need to think about paying your daily expenses, as well as covering additional outgoings such as increased takaful payments. Depending on your personal situation, you may need to buy a home as well as securing a pension.
Experts advise taking out a pension plan in your twenties to capitalize on the power of compounding. However, in most cases it’s not too late to start investing for your retirement, whatever your age. Consult a financial advisor to assess your options and get started on a disciplined investment plan.