UAE: How salary cut taught this Indian expat to always create backup plan, emergency fund

Rumana Mowjee is the managing partner at Gymboree Play & Music in Dubai. The Indian expatriate, 41, is nearing her fourth year in the city and watching her new project thrive in Dubai.

How would you describe your relationship with money?

My relationship with money can be described as complex and constantly changing. On one hand, I have always been taught to be frugal and save for the future. As I entered adulthood, this mindset carried over and I became very conscious of my spending habits. I would carefully track my expenses and make sure to save a portion of my income each month. However, on the other hand, I also indulge in vacations with my family. The one aspect I never compromise on is spending on education for my children.

What good or bad lessons about money management did you learn from your mother?

Growing up, my mother always emphasised on the importance of saving money for a rainy day. Whether it was putting away a portion of my allowance or setting aside money from our family’s grocery budget, my mother instilled in me the habit of saving for the future. She would also stress on the importance of avoiding unnecessary expenses and only buying things that were truly needed. I remember her teaching me how to budget and prioritise my spending, making sure to save for the more important things first before splurging on luxuries.

Who has taught you the most about financial management?

My parents and grandparents have always taught me a great deal about financial management. Growing up, my mother was always diligent with her finances. She made sure to budget and save wherever she could, and she always emphasised on the importance of having an emergency fund.

What do you think has been the most profound experience you’ve had so far in relation to money?

One of the most profound experiences I have had in relation to money was when I first started working at PwC while training to be a chartered accountant. Within six months of starting off as a trainee, I got a 20 per cent pay cut due to the financial recession that had hit Europe. This was a big setback as I had just graduated from college and was excited to start my career. I had rent to cover, and other expenses that were now going to be even more difficult to manage with the decreased income. This taught me the importance of financial planning and having a backup plan in case of unforeseen circumstances.

How do you think living in the UAE has changed your relationship with money?

Living in the UAE has, undoubtedly, changed my relationship with money. The UAE is known for its opulence and luxury, with extravagant lifestyles and a thriving economy. Being surrounded by such wealth on a daily basis has made me more aware of the opportunities that money can bring. It has also made me more conscious of my own financial decisions and the importance of saving and investing wisely.

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