Our million-dollar question is how to reduce the cost of living in UAE. Why? For anyone living in the UAE, finding a way to cut down on expenditure can make a huge difference. Why not if a low cost of living would translate to a more comfortable life? It means having an easy time settling your bills. You get to pay your bills on time without borrowing extra cash since you can rely on your salary.
In other instances, cutting the cost of living means having money to spare for different things, including investment and development. After all, paying bills isn’t all that one wants to achieve with their salaries or benefits. Here is how you can reduce the cost of living in UAE.
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Eating at Home Often to Reduce the Cost of Living in UAE
Cooking at home instead of eating out will reduce your cost of living in the UAE. With the internet offering videos and content on how to cook delicious meals, you no longer need to eat out to enjoy delicacies. The fact that cooking at home is cheaper than buying ready meals and takeaways means you can cut your living costs in UAE if you choose that approach. You can reduce that cost further by cooking big meals. Freeze these meals to avoid spoilage and grab them whenever a need arises. Besides cutting costs, this approach also saves time. It is also suitable for people with tight schedules.
Reducing Your Housing Expenses
It is recommended that your housing expenses shouldn’t exceed 30% of what you are earning. In fact, the lower this percentage is, the better. Here are some ways of avoiding exceeding this percentage.
How to Reduce the Cost of Living in UAE as a Tenant
If you rent your house, these tips can help you reduce your cost of living in the UAE.
- Find an apartment or house that has a relatively low rent
- If there is a need for a repair, negotiate with the landlord to allow you to cater for them and don’t pay rent since the latter is often cheaper than the latter
- It would be a great idea to surrender that parking space you pay for to cut on cost
- Alternatively, look for a roommate to split the housing expenses
- If the rent keeps increasing, consider buying a home to deal with these uncertainties
- Reduce unnecessary electricity use to reduce your utility bills
How to Reduce the Cost of Living in UAE as a Homeowner
If you aren’t a tenant but rather a homeowner, these tips can also reduce the cost of living in UAE;
- If the house is bigger than what you need, rent part of it
- In cases where maintaining your house is quite expensive, sell it and start renting
- Reduce unnecessary electricity use to reduce your utility bills
Embracing Online Shopping
Impulsive buying has seen many people spend more than they had budgeted for. You may buy an expensive item you don’t even need. Ordering groceries can help you stick to what you need, thus preventing unnecessary expenditures.
Having a Budget and Sticking to It
As you prepare a budget, you will consider what you earn. That ensures your expenses aren’t more than your income and reduce the cost of living in UAE. You also get to budget on what to save and emergency funds for car repair and medical bills. Don’t take so much time preparing a budget only for you not to use it. A budget has proven effective in controlling one’s expenditure, and that’s a gateway to cutting down on one’s living costs.
Using a Shopping List
As tempting as it is to rely on your memory when shopping, having a list can help cut the cost of living in the UAE. It ensures you only buy what you need, thus preventing impulse buying when online shopping isn’t an option. Again, you must also stick to your shopping list to yield results.
Choosing an Ideal Health Insurance
Since medical insurance is compulsory when living in UAE, what’s left is choosing one wisely. Remember that expensive health insurance doesn’t necessarily mean getting the best. Therefore, find various insurance covers, compare their premiums and benefits, and settle for the best deal. However, never compromise on quality when choosing health insurance because that usually has dire consequences.
Final Words
A plan to reduce the cost of living in UAE can seem challenging, if not impossible. Bills, groceries, and housing expenses keep increasing, yet they are crucial. That’s why you need the above tips to handle this situation. These strategies ensure that you only spend on what you need. Consequently, you can comfortably save money for investment and growth. These strategies revolve around reducing your housing expenses, minimizing unnecessary expenditures, cutting the cost of food, and budgeting. Adhering to them will substantially reduce your cost of living in the UAE.
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