Hints on dealing with inflation in Dubai

For many expats working in Dubai, it’s becoming a struggle to pay bills as well as saving money.

UAE expat residents aren’t an exception to the rule that inflation is a fact of life and needs to be dealt with by cutting back if at all possible. In the already expensive location of Dubai, lifestyle choices are beginning to become impossible to maintain. For those who relocated along with their families, international school fees are now a major worry, set against the background of rising inflation overall. One father of three who arrived in the emirate seven years ago told local media his family have now cut back on every lifestyle choice they made when they first arrived.

Expat surveys enjoy pointing out that expatriate professionals in Dubai earn eye-watering amounts of cash and often arrive with enviable relocation packages including school fees and accommodation costs. However, reports suggest the days of milk and honey are long gone. Nowadays, many expats’ main concern is retiring or relocating back home with no savings to see them through. It doesn’t help that Dubai’s main function outside the office seems to be the provision of non-stop retail therapy.

Impulse buys, according to money-saving experts, are the first habit to discard when times get tougher. Another problem with spending sensibly is the Dubai expat community itself and its view of the importance of wealth and high living. Getting more, better and bigger treats than the neighbours doesn’t lead to financial security in older age, and rampant consumerism is seriously bad for the individual as well as the planet.

The answer is budgeting better and cutting back on wants rather than needs, with losing a few so-called friends as a result not the tragedy it might seem at first. Admittedly, keeping track of every expense is painful, tiresome and annoying, but at least it’s productive as even small amounts count in the grand scheme of staying afloat financially.

In this credit card fuelled world, clearing debts and giving up on a fistful of plastic can be painful, but it’s far less so than fielding endless calls from your bank on the subject of your overdraft. Watch out for almost dormant accounts as increases in interest rates can soon swell your unpaid balances.

If you’re lucky enough to be receiving bonuses or gratuities from time to time, slam them straight into your bank account and walk away. Getting used to prioritising your needs rather than your wants can be a slow process but is worthwhile in the long run.