Whether or not you make formal resolutions at the start of a year, I am willing to bet that you have certain hopes when it comes to your financial situation.

You may dream of retiring at age 55. Perhaps you want to buy a holiday home or an investment property? Do you want to take a year off to travel the world? Maybe you know you need to put a few things in place to get properly organised?

You need to take action to turn these hopes into reality.

Invariably we could all do a little better and a little focus rarely goes amiss. With that in mind here’s a list of 10 steps you can take to get yourself financially fitter in 2024.

1. Have an emergency fund. This is my number one priority for everyone. If you haven’t done this, you need to have cash equivalent to at least three months’ outgoings and preferably more, especially if you have children. Start this today.

Even if you start small, it is still a start. If you need discipline, set up a standing order to move money to a saving account after you get paid so can’t spend it.

Put coins and small notes in a jar each day and it soon becomes a habit and the amounts will build up.

You never know when the rainy day will come so best to be prepared and there is a great deal of comfort in knowing that you have a financial buffer.

2. Sort out your paperwork. Put all relevant financial papers in one place. That includes bank statements, information on banks accounts, life assurance and savings policies, share certificates, copies of wills.

A safe is ideal but a large box or folder will do if kept in a safe place.

Many documents are not required in hard copy so you can cut down on the paper by keeping soft copies. It is wise to have sott copies of all important documents. Do back up properly though and send copies to a secure email account that you can access from anywhere.

3. Keep a budget. This is especially important if money is tight as until you know what is coming in and at least as importantly, going out, each month you won’t be in a position to improve your situation.

Too many people wonder where their hard-earned income went each month, so for a few months you need to keep a log of every Dirham/Riyal/Dollar that you receive, and every one that you pay out, no matter how small the sum.

If you feel you are frittering cash away, note what you are spending it on. At the end of the month tally each column and you will see not only what is left over, but also where you can make savings.

This matters even if you have a good income and no debt. Many people I speak to are not quite sure where all the money goes each month. Being aware of your spending will help you manage and allocate your income a little better.

4. Set yourself a monthly spending limit. Once you have paid your rent or mortgage, your utility bills, loans and essential bills, give yourself a set amount to spend each week or month. Your pocket money if you like. If it helps, pay yourself an allowance in cash and leave cards at home as that way you will be far more aware of where the money is going.

One school of thought says that after allocating essential expenditure, you should allocate money for savings and investment and then only spend what is left. I agree.

5. Address those credit card bills. Paying the high rates of interest on a credit card balance is a waste of money. Paying the minimum amount each month will not reduce the balance so you must pay more than that amount each month to make any inroads on your debt.

If you are building up debt on a credit card you need to stop using it for daily expenses. That only leads to problems. Remove temptation and put the card away. Leave it at home, out of sight.

For useful information on dealing with debts take a look at this article: 10 tips for dealing with debt in the UAE

Credit cards can be a useful tool but they only really work for you if you repay the balance in full every month.

6.  Make sure you have the facts in case the worst happens. Dealing with death as an expat in the UAE is hard. This is why it is so important to be aware of the facts and to have taken the right steps to protect your money and your family.

Read the facts in this article: How to plan for the worst when living in the UAE

If you have bought a property in the UAE it is essential that you arrange a local will or Sharia distribution will apply on death. That can cause more problems than many people think. All UAE expats can now arrange a local will, no matter their religion

I can assist with arranging wills at competitive prices and minimal hassle.  See HERE.

7. Get insured.  People don’t think twice about insuring their cars but what about the person who is paying the bills? What are they worth if no longer around, or seriously ill and unable to earn?

If you have dependents or a mortgage, you need to make sure you have enough life assurance to protect your family. It is the kind thing to do and it isn’t expensive to arrange simple life cover.

This short video is a useful explanation. Please click to play.

 

8. Plan for your future & manage your investments. The earlier you start the better and compound interest/growth can make a big difference. There are a variety of options to suit different budgets and circumstances but make sure you get professional and unbiased advice.

Get in touch for a chat about sensible investing whether that is in equities or property. No need to lock your money away for years in costly insurance plans as we have flexible options.

The more years you save, the easier it will be to build up a substantial retirement fund. You want time on your side. Don’t leave it too late.

9. Beware of scammers. There are large numbers of scams doing the rounds so be careful, be cynical and ask questions of any direct contacts. Scammers are getting smarter. Don’t ever give passwords, PINs or OTPs over the phone.

The UAE Central Bank will never send a SMS or WhatApp message, especially from a mobile number. You won’t ever win a big prize if you haven’t entered a competition.

Don’t give you hard-earned money to any cold-caller. In fact, run away from them all!

9. Set yourself goals It is important that you set yourself goals as without them you cannot measure your success.  Write them down and check them every month or so.

A goal without a plan is just a wish

If the priority is to pay off your credit cards, set a monthly payment goal and a deadline to have a zero balance.

If you need to build up cash savings, decide how much you will try and save each month and have a target that you can review every six months.

If you need to invest for your future  don’t leave it any longer to get started.

A proper financial review to check that you are on track, to review any existing policies, and to discuss how you can achieve your goals can be highly beneficial.

Your financial situation should be reviewd regularly and what was right for you a few years ago may well have changed. What was okay in 2019 may not be the same in 2024.

Real financial planning, not just selling policies, is about helping you with financial organisation, finding out what you need to do, how to protect your family and ensure you will have a comfortable later life.

What a real financial adviser can do for you

I have yet to meet anyone who cannot benefit from genuine advice. Not selling, but expert independent financial advice.

Our conversations are about serious topics but they are relaxed and friendly.

I really am as friendly as Iook in this photo!

 

Make 2024 the year when you really make a difference to your financial situation and seriously plan for your future. It doesn’t have to be painful but it really matters.

Happy New Year!

To arrange a discussion on any aspect of your personal financial planning, please email me at keren@holbornassets.com.

Expert, qualified, professional advice on a range of issues including general financial planning, life and critical illness cover, investments and UK pensions, wills and inheritance tax planning, UK tax, offshore banking, currency transfers.

I write articles such as this one as part of the holistic personal financial planning service and that I provide to expats, and the general consumer, financial and legal information that I provide in The National newspaper and on the Facebook group British Expats Dubai.

Please take a look at the other useful articles on this website, including:

Offshore bank accounts – the benefits for expats

Where there’s a will, there’s a way to protect your family

Invest in UK property without a big deposit? Yes, you can!

UK Property Investment – 10 reasons why it makes sense