10 hours ago
My Dubai Salary: ‘From an income of Dh1,200 in 1997, I now earn Dh55,000 running two businesses'
Moossa Alavi recalls from his childhood that his father always used to have up to Dh5,000 ($1,361) in his wallet, to sustain him during an emergency. That prudence guided Mr Alavi's outlook towards managing finances from a young age.
Today, the Indian citizen runs two business in the UAE – a digital sign company and a digital transformation firm.
Mr Alavi, 47, has invested in his businesses, stocks, property and gold, and aims to semi-retire in eight years, when he hopes to earn a monthly income of Dh100,000.
He currently lives in his own property with his wife and four children in Dubai's Damac Hills 2. Mr Alavi, who comes from the southern Indian state of Kerala, has been in the UAE since 1997 and obtained his bachelor's degree in business administration from Jaipur National University.
What was your first job and salary?
My first job was in Abu Dhabi where I worked as an executive secretary to the chief executive of a group of companies. I earned a monthly salary of Dh1,200 in 1997. I worked with that company for 12 years.
I then moved to Dubai and helped set up an advertising and printing company, but did not invest in it. I was a working partner and earned Dh25,000 a month by the time I left the role. I worked there for nearly eight years.
Tell us about your current role. What is your income now?
I currently run two business. One is Techbot Information Technology, a digital transformation company in Dubai, and the other is Altamyz Advertising, a sign manufacturer. I'm currently drawing a combined monthly income of about Dh50,000 to Dh55,000 from the two businesses.
Do you manage to save?
Yes, I save 60 per cent of my monthly income and reinvest in my businesses.
Do you have any debt?
When we run a business, we require cash and it needs to be utilised very well. When a loan is available on a low interest rate, I always opt for it. I also use three credit cards for my business and personal requirements to receive points and cash back. These are always paid back in full before the due date. I also have a mortgage.
What are your major monthly expenses?
My major monthly expenses are my kids' school fees, household costs and mortgage payment.
How do you budget your income every month?
I spend 40 per cent of my monthly income on my expenses, which add up to nearly Dh20,000 a month, and save the remaining 60 per cent. Of this, I spend between 10 per cent and 15 per cent on stocks, 10 per cent on gold and the remaining amount is reinvested into my businesses. When I earn a profit, I take it back from the businesses.
What asset classes do you invest in?
Apart from my businesses, I also invest in Shariah-complaint stocks of oil and gas, infrastructure and medical companies in the UAE and the US, real estate and gold. I haven't taken out money from my stock investments yet, I have only increased capital.
Have you purchased property here or in your home country?
Two years ago, I purchased the three-bedroom Damac Hills 2 villa I currently live for Dh1.8 million. I also own a land plot in Sharjah, which I may resell for a profit or build a factory. I own property and land in India, too.
Have you started saving for retirement?
My plan is to not retire from work completely. I aim to run my businesses without my involvement at the age of 55. Currently, my businesses are in autopilot mode since I am not too involved and delegate work to my managers and team members. I plan to monetise my investment in stocks and property to sustain my retirement life.
Do you have an emergency fund?
Yes, I have six months' worth of expenses in my emergency fund.
What do you spend your disposable income on?
My family and I love to travel, so we spend on that. I also like to reinvest in myself, for instance on learning, and I like exploring new technology tools.
Have you ever inherited a sum of money?
No, I am self-made and it's all my hard work.
Growing up, were you taught how to handle your finances?
I learnt about money management from my father, who worked in the UAE defence industry. Whenever I checked his purse, I always found between Dh3,000 and Dh5,000 in it. When I asked him about this, he said an emergency could happen at any time and he wanted to be ready to fly back. Even today, although we are three siblings, my father isn't financially dependent on us and he has created a fund to sustain himself. I learnt how to earn money, save and manage funds from my father.
Do you worry about money?
I used to worry about money earlier in my career when I was an employee. Now, I am not worried because I know how to use my funds and investments if something happens.
What are your financial goals?
Currently, I earn up to Dh55,000 from my two businesses. By the time I am 55, I want to be able to draw Dh100,000 a month. I plan to achieve this by increasing my business revenue and using my assets.
What is your idea of financial freedom?
I want to live life on my terms and not have to depend on anyone else for financial help. I have already achieved financial freedom, so whatever surplus money I have, I'm reinvesting it and planning to open a business-to-consumer venture. Both my current businesses are B2B.
The reason why I want to start another business is to give back to my community by providing jobs.
