If you’re a single woman living in the UAE you probably know what it’s like to be career oriented and financially independent. But are you as financially responsible as you are financially independent?
Results from the BlackRock Global Investor Pulse Survey released earlier this year showed that only 42 per cent of Gen Y women were confident about their financial future, while the numbers for men were much higher at 71 per cent. So what explains this difference in perception?
Women today are more financially aware, self reliant and empowered as compared to the previous generations. This calls for a greater focus on maintaining an honest and healthy relationship with money to ensure a financially secure future. And what better time than now to take charge of your finances! Here are a few money management tips to help you stay on top of your finances.
Take the good old budget route
Many of us often don’t play by the book, which means skipping the good old budget. But when you live in a city as glamorous as Dubai where there is always something new to do or some place new to be at, it’s easy to go off-track with your finances.
Ideally, you should be able to account for every dirham, whether it’s a fixed expense like rent or the occasional splurge, in order to avoid unpleasant surprises at the month’s end. A carefully planned budget is a great money management tool and essentially keeps track of where your money is going, helps you make wiser decisions and achieve long-term financial goals.
Set a retirement reminder
While you may think retirement is far far away, it’s never too early to start saving for it. As single women, we get busy making ends meet, spending on the extravagant luxuries every once in a while or planning exotic vacations. What we often miss out on is to include retirement planning in our to-do list and unfortunately ponder over it when it’s too late.
Saving for your retirement early is going to benefit you in more ways than one. And since you have more time at hand, starting early would mean setting aside a smaller amount towards your savings every month.
[Related: Balancing career & family: The working mom’s dilemma]
Think smart, get life insurance
As a single woman, life insurance is probably something you haven’t thought much about. But just because you don’t have any dependents such as children or a spouse, doesn’t mean you don’t require it. If you have elderly parents to look after financially or any form of debt such as an education, personal or home loan, getting life insurance could be a wise idea. The good news is that insurance premium is also linked to your age which means the younger you are, the lower your premium will be.
Stay on top of your credit report
The Al Etihad Credit Bureau launched operations in 2014, and banks can now easily access your credit report. This means whether it is a missed credit card payment or a loan installment not paid on time, your entire repayment track record will reflect in your official credit history. Since your credit report will determine your future ability to borrow, you must not take it lightly. It’s important to evaluate your existing financial obligations and whether or not you can comfortably pay off any additional debt.
[Related: CFO level skills to manage your household finances]
Seek help from experts
Not everyone is a money management expert. And it’s okay to not know how to make the important money-related decisions. From choosing the right savings account to exploring investment avenues, you can always seek help from outside. You can reach out to an expert who can guide you on a number of small and big financial matters. For example, a licensed investment adviser can walk you through the possible investment options, be it the stock market or a retirement savings plan.