In today’s world, we lead busy lives. Then an event happens that drains our finances, but with insight and planning, the cost of such events may not become a major problem.
If you wish to send your two children – who are now five and seven – to university when they turn 18, the cost will be approximately AED 100,000 per child. University costs will also rise over the years, so you need to bear this in mind. To cover this anticipated cost, try to save AED 1, 500 per month into a dedicated investment account. Maybe you can give up one social event per month to fund this.
If you anticipate that you will need a new family car in about five years, the cost could be as much as AED 100,000. If you begin a savings plan, contributing AED 1,300 per month, then you would have AED 78,000 in five years. Trade your old car in for
AED 20,000 and your balance is only AED 2,000 as opposed to AED 80,000. Makes sense, doesn’t it?
You also need to be prepared in the event of an unexpected expense such as a trip home to visit a sick relative. In these moments, access to funds immediately is very important and eases the stress. Saving as little as AED 1,000 each month for such occasions can make a real difference in the long term.
Our advisor is Craig Holding, associate director at Acuma Wealth Management. For more information or a monthly budget planner, e-mail
This e-mail address is being protected from spambots. You need JavaScript enabled to view it