Everybody knows that you should be saving a portion of your salary, to ensure that you have spare cash at the ready. This could be for a big purchase you suddenly need to make, job loss or it could be because you just want to treat yourself. Having a little put aside for a rainy day is a great idea, and there are many savings bank accounts in the UAE which allow you to do this and grab some benefits at the same time.
Are you someone who doesn’t find it that easy to save? Not many of us instinctively want to do so, and if you are, you’re lucky! It could be that you have good intentions, but that they just go out of the window when your phone rings or a holiday brochure shows up. The thing is, saving money means that in the future, your financial situation will be overall much better. It’s super easy to open a saving account online too, so you don’t even have to leave the house to get the ball rolling!
A general rule is that you should aim to have around three months’ salary in your savings account. This will mean that in case of any unforeseen circumstances, you will be still be able to maintain a good standard of living.
How much you decide to save each month is an entirely personal decision, because only you know how much you can afford. When opening a savings account, you will need to put some cash in as a initial deposit, that doesn’t need to be a particular amount, just enough to get you started. From there, you should sit down and work out your finances basis the following:
Look at the amount you have coming in every month, e.g., your salary, and then work out what needs to go out every month. Your rent, insurance, cell phone contract, car needs, grocery shopping, and anything else which you need to pay every single month, including any debts you have. The amount you have left is your surplus cash.
While it’s good to save as much as you can, it’s not a great idea to save everything you have remaining, because you need to enjoy a little bit after all. So, arrive at a reasonable amount, perhaps a quarter of what you have left. This small amount will soon mount up to an excellent little egg nest for you and could be transferring every month into your saving account online. Quick tip, it’s best to do this on the day you are paid, so you don’t accidentally spend it!
Disclaimer: This article has been prepared solely for information purposes. It does not constitute an investment advice, solicitation, offer or personal recommendation by Mashreq, or any of their related parties to buy or sell any securities, product, service or investment or to engage in or refrain from engaging in any transaction, particularly, in any jurisdiction where such an offer or solicitation would be illegal. Neither Mashreq nor any of their related parties warrant the accuracy of the information provided herein and views expressed in this article reflect the personal view which does not take into account of individual clients’ objectives, financial situations or needs. Investors are required to undertake their own assessment and seek appropriate financial, legal, tax and regulatory advice to determine whether such investment is appropriate for them in light of their experience, objectives, financial resources and other relevant circumstances. Neither Mashreq nor any of their related parties accept any liability whatsoever for any direct, indirect, consequential or other loss arising from this article and/or further communication in relation thereto. Mashreq do not accept any obligation to correct or update the information in this article.