How to save in UAE on a low-paying job

They say money cannot buy happiness. But simply saying this ignores the fact that money is, without doubt, a powerful tool. Not only do you need it for sustenance and physical well-being, but it is also a requirement for quality education, healthcare, entertainment, and many other essential aspects of life. So, while we can say that happiness is not the immediate outcome of money, it is realistically so in the long-term.
A full-time job is the main, and sometimes only, source of income for people. Therefore, it is probably not shocking news that the average salary in the Mena region is dissatisfactory. The Bayt.com Middle East and North Africa salary survey, in May this year, revealed that only a small proportion of respondents (4 per cent) claim to have high levels of satisfaction with their current salary. Keeping in mind the rising cost of living, saving a decent proportion of one's income is becoming more of a challenge.
That being said, saving more money is not impossible, even on a salary that is below the national average. Saving money is doable with proactive planning and budgeting. Here are a few tips from Bayt.com to help you save more.
1. Create a personal budget
For many people, just hearing the word 'budget' is stressful. However, personal budgeting does not need an accounting degree. A personal budget can be easily made using Microsoft Excel, Google sheets or even a pen and a paper, and listing all financial obligations. When creating a budget, make sure that the amounts are as accurate as possible and that the budget has clearly labelled categories for your records. Limited budgets need to be more accurate in decimals. It is recommended that you make monthly budget sheets as a yearly budget will not reflect the varying expenses over the months. With a monthly budget, you can adjust your expenses to reach your targeted savings goal.
2. Allocate absolute necessities
When creating expense categories for your budget, you should begin by listing out necessary expenses such as rent, utilities, transportation.etc. Any item that you have no leeway over must be dealt with first. Many people make the mistake of paying for their essentials on-the-go. When you receive your paycheck, the first thing to do is to allocate the money for your musts. Make sure that you put that amount aside so that you're not tempted to spend it on non-essentials.
3. Allocate flexible necessities
Items like food, data usage, and clothing are flexible necessities because their amounts can vary significantly from month to month and are based on preferences and lifestyles. Ideally, you should not be spending more than 40 per cent of your income on these items. Your income level should inevitably have an impact on how frequently you eat out, travel, or buy new clothes. Make sure that spending on these items is proportionate to your income. Use the percentage feature on your spreadsheet to determine a spending limit for yourself and abide to it by revisiting your budget frequently.
4. Do not make leftovers your savings
When you are formulating your budget sheet, designate a specific percentage of your income as savings. A realistic proportion is 10 per cent to 15 per cent of your income as savings. Make sure that this amount is calculated before you receive and begin spending your salary. Over one-third (35 per cent) of respondents to the Bayt.com Middle East and North Africa salary survey claimed that they do not manage to save any of their salary at the end of the month. If you wait until you have spent most of your income and use the leftovers as savings, then you may end up with little or no savings.
5. Designate a budget for emergencies
It is critical that you designate a slice of your income for urgent matters. Things like sickness, accidents, and job dismissal are all highly unpredictable and often carry significant expenses. Do not assume that your savings are your emergency fund (although sometimes you may have to spend a portion of your savings on emergencies). It is highly recommended that you keep your emergency budget separate from your savings.
6. Negotiate a better salary
If your salary is too low for the average cost of living in your country, you will most likely have trouble saving. If you believe that you are being underpaid for your talent and experience, then you should seek a better salary. Ask your manager for a raise, but before doing so, make sure to research the average salaries for your position, experience level, and location. That way, you have a clearer idea about how much to ask for.
(Bayt.com is the #1 job site in the Middle East with more than 40,000 employers and 26,250,000 registered job seekers around the globe)

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