My inputs featured in The National UAE Newspaper

UAE residents become frugal to be better prepared for emergencies

>From cutting down on gym memberships and dining out, UAE residents say their spending habits have changed since the start of the pandemic

Families in the UAE are spending less and saving more to be better prepared for emergencies.

Since the start of the pandemic, many people have lost jobs or faced salary cuts, a trend that has seen individuals become more financially responsible.

Residents who spoke to The National said they have cut back on travel, entertainment and unnecessary spending to build their savings.

Sonal Chhibber, an Indian freelancer in Dubai, said before the pandemic she went on expensive family holidays and shopping sprees with friends. But now, she and her husband have scaled back their spending and are building an emergency fund.

“Working from home has resulted in saving big time on our commuting costs, clothing, business lunches and conferences,” said Ms Chhibber, who has been a UAE resident for 14 years.

“Time spent indoors, however, has made us spend more on home entertainment and groceries. However, we have cut down on all non-essential products and services.

“We have built a comprehensive family budget and have put our family’s financial and health records in order to keep them handy during an emergency.”

Ms Chhibber said her family decided to continue living in an apartment, instead of moving to a large villa.

Moving would have increased their monthly rent by Dh5,000 ($1,361) and utility bills by Dh1,500.

She moved her three children to a more affordable school, saving Dh3,500 per month.

They also save Dh2,000 a month by reducing the amount they dine out and spend on movie nights, fun days out, and shopping.

“The Covid-19 pandemic has drastically altered how and where we choose to spend our hard-earned cash,” Ms Chhibber said.

“As a family, we are trying to make sure to use this time at home to our advantage, so that we can make the post-pandemic period as stress-free and enjoyable as possible.”