Tips on saving money in the UAE

Several apps like Sav are now available to make planning finances easy

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Mithil Ajmera, Co-founder and COO of Sav

Published: Thu 12 Sep 2024, 4:54 PM

When expats first move to the UAE, they’re often drawn by the allure of a tax-free, luxurious lifestyle that’s ‘Grammable’. However, they quickly realize that maintaining this lifestyle can be challenging with the high living expenses. Many end up relying on credit cards to sustain this lifestyle, which can lead to a cycle of debt, leaving them with little to no money when they eventually leave the country.

In fact, 61% of UAE residents express concerns about their financial situation post-retirement. “While there are plenty of opportunities to spend and invest money, there are very few tools that genuinely help people manage their money in a smart, sustainable, and engaging way. This is where Sav comes in - to support users in with better money management,” Mithil Ajmera, co-founder and COO of Sav, said.

Another challenge for expats is the need to send a significant portion of their income back home to support their families. This often leaves them with a smaller percentage of their salary to cover living expenses here, making it difficult to manage their finances effectively.

A growing number of expats are adopting a more disciplined approach to managing their finances. “A recent study showed particularly among GenZ, nearly 90% of respondents had set financial goals for the year, and 63% were willing to work with a professional financial advisor to achieve those goals. This shift towards proactive financial planning is a key habit that contributes to their financial success,” Ajmera said.

Expats are increasingly using apps like Sav for planning, budgeting and setting aside for planned purchases regularly. Sav offers a range of features tailored to help users manage their finances without feeling overwhelmed. “For example, our ‘Salary Sorter’ automatically allocates a portion of the user’s paycheck towards various predetermined goals, such as flight tickets or a down payment on a new car. Another feature, ‘Round Up Spare Change’, helps users set aside spare change every time they make a purchase, turning a seemingly small amount of money into significant contributions over time. One of our latest innovations, ‘MyMoney’, consolidates spending data from all connected bank accounts into one easy-to-navigate dashboard. This allows users to track their spending and make informed decisions that align with their financial goals. The feature is enhanced by Google’s Gemini AI, which processes text and images seamlessly,” Ajmera said.

During the development of Sav, the developers took a close look at the existing offerings from banks and financial institutions, the spending habits of consumers, and the common reasons for overspending. “We also considered the barriers people face when it comes to budgeting. With these insights, we designed the Sav app as a platform that not only helps users stay on top of their finances but also makes the process enjoyable and engaging. We partner with several retailers and service providers to get exclusive deals and amazing rewards to ensure that the process of money management shifts from a chore to something exciting and fulfilling. While there were multiple apps that operated in silos offering rewards or budgeting services but there was a need for a lifestyle-led platform that could solve for fragmented finances and consolidate all the financial information in a user-friendly manner,” Ajmera said.

The ‘Save Now, Buy Later’ (SNBL) feature on the app is designed to help users get big-ticket items by setting specific targets and timelines, and automating contributions to that goal. “We’ve also partnered with popular brands that offer discounts to users who are diligent with their savings, making financial goal achievement not only faster but more satisfying,” Ajmera said.

When navigating financial challenges in the UAE, it’s crucial to have a clear financial roadmap, Ajmera stressed. “Start by setting specific goals, whether it’s saving for a home or planning for retirement. Secondly, a well-structured plan, like the one Sav can help you create, is essential for tracking income and expenses, ensuring you stay within your means. Another important tip is to avoid unnecessary debt by focusing on building a financial cushion and only borrowing when necessary. Additionally, try not to get swayed away by credit cards for your daily expenses just because they are highly incentivized. Find deals on good debit and prepaid cards, like Sav’s 5% cashback offer on all prepaid spends. This promotes healthy financial habits by encouraging mindful spending and avoiding unnecessary debt. By following these tips, expats can effectively manage their finances and achieve their financial aspirations in the UAE,” Ajmera said.