Tuesday, September 7, 2010

1 Don’t neglect your credit cards

Banks in the UAE are quick to throw cards with huge limits at new residents and they are great to bail you out in emergencies. But unless you are disciplined, credit cards can land you in trouble. Take them out of your purse or wallet and leave in a secure place at home where you won’t be tempted. And always make the minimum repayments on time to avoid late fees.

2 Try to live off half your salary

Let’s face it, most people arrive in Dubai looking to make some tax-free money that will help set them up. To do this, you’ll need to examine your expenses and be brutal when deciding what you can live without - manicures, double lattes, fancy restaurants and gym memberships are luxuries, and cutting them out of your budget could mean surprising savings at the end of the month.

3 Entertain at home

Dubai has some wonderfully lavish bars and restaurants, but dining out here doesn’t come cheap. Equally, takeaways may seem cheap and convenient but the costs soon add up. In tough financial times try to master the art of ‘cocooning’ - staying in and inviting friends around for dinner or a movie night. The hot summer, with Ramadan slap-bang in the middle this year, is the ideal time for this.  

4 Shop smart

Certain supermarkets may be convenient and stock all your favourites from back home, or even deliver straight to your door. But they are often much more expensive than other, more basic supermarkets. You’ll save more if you buy your everyday items from one of the larger hypermarkets, rather than picking up what you need on a day-to-day basis. Decide on a grocery budget at the beginning of the month, and make it last.

5 Don’t pay full price for anything

If you look hard, you’ll never need to. Shops regularly offer reductions and buy-one-get-one free promotions and then there are the big sales in January and during summer, with any number of part-sales in between. Shop around. Dubai Outlet Mall (04 023 4666) has many of the brands you’ll find at other malls but with heavily discounted prices. You’ll be amazed at what you can save.

6 Get packing

They say there’s no such thing as a free lunch, but packing your own sandwiches is the next best thing. In most cases, a packed lunch is healthier, as there won’t be the same preservatives and you can control exactly what goes into it. Plus, the savings you make really do add up at the end of the month. The healthy eating may mean you can drop less money on those spinning classes too.

7 Take advantage of exchange rates

Certain items can work out cheaper when buying from Amazon (www.amazon.co.uk), even when you factor in shipping, simply because of the exchange rate. You can get a current CD for over dhs10 cheaper than you’d pay in a retail outlet here, so if you’re ordering a few, you could save a bundle. If you’ve got visitors coming over, get your order delivered to them.

8 Buy second-hand

Visit the Safa Park Flea Market (www.dubai-fleamarket.com), which is being held in the Crowne Plaza over summer, for a browse through other people’s unwanted items, or head up to the car boot sale which takes place at Dubai Autodrome during the cooler months. Almost all supermarkets have noticeboards that are cluttered with great pre-owned items looking for new homes.

9 Reduce costs over summer

If you are planning to be away, look into downgrading your satellite TV and internet packages for a few months. That way, you can usually upgrade again come September without having to pay any reconnection fees. Better yet, if you only have satellite TV so that you can watch the Premier League football, cancel the package completely over summer.

10 Look past the obvious  

From bars and restaurants to car repairs and gyms, think outside the box. Head to Sharjah for car repairs or tyres and you’ll find prices have almost halved. While big gym chains are easy options, ask at local hotels or hotel apartments and you’ll find gyms that offer membership - often including pool and spa use - for a fraction of the cost. Shopping around can pay off big time.