The UAE has been a land of opportunity for expats from all over the world, who aspire to move to a country that offers a comfortable living standard, safe environment, and most importantly, tax-free salaries!
However, in this land of endless sun, luxury and Friday brunches, there are several mistakes that UAE expats commonly make when moving to the country that could have adverse effects on their finances, budgets and lifestyles.
Let’s take a look at some of these most common mistakes:
Not doing thorough research…
On several occasions, and in so many circles, UAE expats move between different residential areas without doing an adequate amount of research on that area. Imagine this: you are a couple, who just moved to Jumeirah Village Circle, but you don’t own a car and the reason you moved in the first place was due to budget restrictions. Little did you know that there’s currently only one bus functioning in the area that drives to Mall of the Emirates metro station! So whatever you would have saved on rent, you will now probably end up spending on transportation! Moral of the story: research the area you want to live in well enough before moving in.
Taking personal loans for everything…
Everywhere you go in UAE you come across long lists of Equated Monthly Installment “EMIs” and loans for buying everything from villas to cell phones. There are also driving license loans, Apple Watch loans, and more. What we forget is that sometimes it’s better to save the whole amount for that one thing we want to buy and pay for it in cash, instead of taking a loan and spending more money on its EMI.
Having little knowledge about local culture…
UAE probably has one of the most diverse cultures in the world, and whilst the country has strong cultural beliefs and social laws, the UAE offers freedom of religion to expats. One frequent mistake expats do when moving to the country is not educating themselves enough about the culture and traditions of UAE and its local and expat population, which can run them into some tough spots.
Spending beyond your means…
People originally move to the UAE to save money and to enjoy a comfortable living standard. But with the lure of the emirate, and its expanding list of offerings and temptations, expats often end up spending more than their pockets allow, which starts a snowball of undesired outcomes.
Living through your Instagram feed…
There’s always a new restaurant to try, a new spot to hang out at, or something new to post on your social media feed in this dynamic country, but it’s very easy to get carried away by the glamour of it all. Getting stuck in the vicious loop of keeping up appearances and trying to mimic a certain lifestyle that you can’t afford can have a negative impact on your finances.
Getting too comfortable being lazy…
UAE has delivery options for everything – whether it’s your groceries, a gourmet meal or a Yoga teacher (the last one doesn’t get delivered- but will come home to teach you Yoga). With so many options, and everything within reach, expats can get too lazy for their own good.
