Khaleej Times recently published an article guiding the UAE in how to advance their financial planning and successfully attain their financial aspirations. 42% of the people from the UAE lack the knowledge of applying a budget for their daily life and as the report said, a well-strategised budget with ‘smart’ goals, well-defined future plans and keeping societal pressures at bay will ensure financial planning to be successfully executed.
To prepare the budget, the report urges people to keep an end-to-end track of their expenses. Before finalising the amount that a person wants to save, the outflow of money should be noted at first. The expenses should be noted in a template for the ease of calculation and for backtracking all the previous expenses.
Setting ‘smart’ goals include starting to build one’s savings at the earliest and ensuring it is done on a regular basis. All financial goals should be given the required focus and should also be categorised based on the priorities.
Planning one’s future finances require a considerable amount of research in order to comprehend where an individual should invest. For a long-term investment, individuals should thoroughly access all investment options like stocks, bonds, term deposits, managed funds, real estate, etc before starting their investments.
Societal pressure and mental competition many-a-times compel individuals in making the wrong financial decisions. People get indulged in an expensive buy or invest in an expensive holiday trip more than they can actually afford. So, the expenses are meant to be carved as per one’s want and desire.