Over 50% of UAE Residents Spend More Than They Earn, Reports Survey
A recent survey conducted by financial technology platform Yabi reveals that over half of UAE residents (50.46%) spent more than they earned in the past year, pointing to growing concerns about financial security.
The Yabi Financial Health Report 2024 also found that only 33.53% of respondents felt confident about having enough funds for retirement, highlighting a significant gap in long-term financial preparedness.
The survey further showed that 41% of residents lack optimism about achieving their long-term financial goals, reflecting widespread uncertainty in financial planning. Despite 63% of individuals paying bills on time, half of the respondents reported they could only sustain expenses for two weeks or less without income, underscoring a vulnerability in financial resilience.
Financial advisor Raji Kaippallil attributes the trend of overspending to the allure of Dubai's vibrant lifestyle, peer pressure, and the easy availability of credit through credit cards and buy-now-pay-later options. Kaippallil emphasizes the importance of saving at least 20% of one's monthly salary to build an emergency fund, a crucial safety net for future financial difficulties.
Content creator Kaunain Fatima shared her budgeting approach, dedicating 30% of her salary to rent and groceries and prioritizing savings. Freelance travel content producer Zahirah Marty admitted to struggling with saving but emphasized managing expenses carefully.
Kaippallil recommends the 50/30/20 rule of budgeting: allocate 50% of income to essentials, 30% to discretionary spending, and save or invest 20% for future goals. This approach can help residents better navigate Dubai's financial challenges while building a more secure financial future.
News Source: Khaleej Times
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