IT is very important to manage your money properly from the get go! In order to save money and use it to achieve your goals, dreams and aspirations, you should follow these three simple steps:
1. Think about what you want to achieve.
2. Figure out how much you need to save based on what you need to achieve.
3. Make a smart saving plan.
If you think it is not as easy as these three steps, let us guide you through these three steps in detail
STEP 1: Think About What You Want to Achieve And Make A Simple Plan
If you could look into your own future, could you afford to be there? The more you save now, the more likely it is you'll have the money you need later. Don't feel that saving has to be 'all or nothing!' You don't have to choose between current financial obligations and saving for retirement. You can enjoy life while saving for the future. The key word is balance.
Starting small and building your savings over time can be a good step toward reaching your goals
Spend after you save, don't save after you spend.
Aim to save at least 12% of your monthly income, if not more
STEP 2: How Much Do You Need To Save? Work Out Your Goals
List down your goals, and the time you would like to achieve them. You can use the table below to work out your personal financial goals.
We've given a couple of examples to help you on your way…
||MONTHLY PRIORITY SAVINGS REQUIRED (without savings profits returns)
|Buy a house
||AED100,000 (Down payment)
|Holiday in Europe
|Retirement at the age of 60
||AED 1.5 M
STEP 3: Know Your Options And Make A Savings Plan.
Tips for successful saving
1. Set realistic savings goals
2. Open a separate savings account to keep your savings away from your everyday money
3. Set up an automatic payment so the money goes into your savings account on pay day
4. Start small – if you save regularly, even the smallest amount can soon add up
Money Saving Options
If you want to access your money easily and you want to invest it safely, then you should save your money in one of the following ways:
Where you can access your money any time and you may benefit from good generated profit.
Save for your retirement by putting a monthly payment into a pension plan.
This is a Shari'a approved investment similar to conventional bonds. Generally Sukuk offers a higher level of income than a bank deposit, and although your capital is highly secured they are not as safe as a bank deposit.
Emergency Savings Account
Open an instant access bank account where you can access your money within 24 hours to pay for unexpected emergencies.
Keep three to six months' salary in this account to cover emergencies