Ever get to the end of the month, look at your bank balance, and think, “Wait… what happened?”
You’re not alone. Whether you’re just starting your career, or a parent juggling school fees and grocery bills, the question is the same: Where does it all go?
The truth? It comes down to knowing exactly what’s coming in, what’s going out, and giving your money a game plan. And here’s the good news — budgeting isn’t always about cutting back. It’s about taking control so you can spend on the things that actually matter to you.
Step 1: Know your numbers
First, list every dirham you earn — salary, freelance gigs, side hustles, passive income. Then, for at least a month, track every single expense. Yes, every one: rent, fuel, Netflix, that cheeky Deliveroo order at 11pm.
You don’t have to do it with pen and paper. There are loads of apps like Spendy, Wally, Buddy and UAE-made Yabi, which uses AI to track spending and suggest ways to budget smarter. Your bank also might have free tools too — Liv from Emirates NBD, for example, has a budget planner built right in.
Be warned: this exercise can be an eye-opener. You might find you’re spending more on takeaway coffee or Careem rides than you thought, or still paying for subscriptions you forgot about. But knowledge is power — once you know, you can fix it.
As Rakhil Fernando, CEO of Yabi, puts it: “We want to reach users before they develop poor financial habits, so they avoid common pitfalls like lack of savings or overspending.”
Step 2: Break it down
Most money experts use the 50/30/20 rule:
- 50% Essentials – Rent, utilities, groceries, transport, school fees. In Dubai or Abu Dhabi, rent alone might eat more than half — that’s okay, just write it down and adjust.
- 30% Lifestyle – Dining out, shopping, entertainment. This is the “fun” money, but be realistic — living in a city of rooftop brunches and luxury malls means this category can blow out fast.
- 20% Financial goals – Savings, investments, debt repayments. This is where your future self will thank you.
Step 3: Set goals you’ll actually hit
Saving without a purpose is boring. Give your money a mission — a staycation, a car upgrade, your kid’s education.
Make them SMART: Specific, Measurable, Achievable, Relevant, Time-bound. So instead of “I’ll save more”, try: “I’ll save AED 500 a month to build a AED 6,000 emergency fund by next summer.”
Step 4: Don’t go cold turkey
Budgets fail when they’re too strict. If Friday dinners out are your thing, keep them — just set a monthly limit. Budgeting apps (like ADCB Hayyak or Mashreq Neo) let you set spending caps and warn you when you’re close.
Step 5: Review and reward yourself
Check in at the end of each month. If you came in under budget, give yourself a little treat — guilt-free. Make it fun: compete with your partner or friends to see who can save the most. And if you slip up? Don’t stress — just get back on track.
Budgeting, UAE-style
The UAE is a land of opportunity — tax-free income, sunshine, big salaries. But it’s also a land of big temptations: designer shops, brunch culture, flashy cars. Lifestyle inflation is real — the more you earn, the more you think you can spend. The trick? Don’t let your income dictate your outgoings. Let your goals do that instead.
