Living the high life is easy in the UAE. But can a family of three cover their basic monthly expenses on just Dh1,500? A family in Dubai took on an extreme budget challenge, trying to keep their grocery, utilities and transport bills within Dh1,500 (rent and education not included). Find out how they fared and read the complete report here: https://gulfnews.com/uae/can-a-family-of-three-live-on-dh1500-in-the-uae-1.63175336
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00:00So, at an editorial meeting, I pitched the idea that it would be interesting to document
00:14one of us living on an extreme budget, say, spending an entire month on just 1,500 dirhams.
00:22My editors decided to take it up a notch.
00:25They said, why not have an entire family do that?
00:29That was the start of my extreme budget challenge.
00:32Let's see how I fared.
00:33The first thing we did was analyze our expenses and look at the things we had no control over.
00:40Landline, mobile phone bills, internet bills, necessities like my baby's diapers, petrol
00:46costs or even medicines that we might need.
00:51And then there were things that you could reduce, but it would mean taking out a big
00:55chunk of your time each day.
00:57You could avoid salik or driving altogether and take public transport instead.
01:02But that means a longer commute every day to work.
01:06Is it worth it?
01:07I preferred paying more and spending that extra time with my daughter instead.
01:14And then there was a massive chunk of my expenses that was completely reducible, namely eating
01:20out.
01:21Yes, I eat out a lot.
01:23And the extreme budget challenge forced me to meal plan.
01:27We planned the meals for the week and when we did eat out, we set a very low budget.
01:33If you're a big family and want to cut monthly or weekly costs, a visit to your local fruit
01:38and vegetable market would be a good idea.
01:41For a family of two adults and an infant, shopping every week for fresh fruits and vegetables
01:46from our neighborhood hypermarket made more sense.
01:50So with the biggest chunk of my controllable expenses addressed, these are some of the
01:55other tips that I followed during the month.
01:59Number one, reassess your possessions.
02:03You'll be surprised with the amount of things you have but never use.
02:07Check what you have in your refrigerator, in your kitchen cupboards or your wardrobe.
02:11How often do you end up buying more clothes while many are left unused?
02:16The extreme budget challenge meant that unnecessary shopping trips came to a grinding halt and
02:21we as a family rediscovered what we already owned and started using them much more.
02:29Number two, small changes add up.
02:32If you have a tendency to go to the office canteen for evening tea or coffee, cut that
02:37out.
02:38You'll be going for one coffee but might end up picking up a lot more like biscuits or
02:42chips or other snacks.
02:44I stocked up for the entire month on chocolates, biscuits and healthy snacks and that helped
02:50me reduce my budget quite a bit.
02:53Breakfast was another game changer for me.
02:55I'm often dashing out of my house and rarely get time to eat breakfast at home.
03:00On the way to work however, I found a local cafeteria.
03:03You'll be surprised at how much variety you can get for an excellent price at these corner
03:09shops.
03:10My go-to breakfast?
03:12One omelette roll and two servings of kadak chai for a grand total of five dirhams.
03:17Yes, you heard that right.
03:22Number three, look for deals online.
03:25Check out the many online stores for bargains.
03:27Personally, I always buy diapers and baby wipes in bulk and it's cheap and convenient.
03:36Number four, the freebies.
03:39A night out with family and friends does not have to cost you a fortune.
03:43There are several options that cost you nothing.
03:46An evening at the beach, an early morning park visit or simply visiting the latest attraction
03:51in your city.
03:52All of this can be done at no extra cost.
03:56Just plan in advance to make sure you don't spend unnecessarily.
04:00Make sandwiches before a long drive.
04:02If you're visiting a retail area, plan that trip after dinner.
04:06A grumbling stomach often forces the brain to make silly decisions.
04:10So these were some ways in which I cut down costs.
04:14Now for the big reveal.
04:15How much did I really spend through the month?
04:182,800 dirhams.
04:20Yes, that is way off target, but for me, it was a great way to realize that I didn't
04:25need half the things I was wasting money on.
04:28But during the experiment, I had another realization.
04:32This was just a fun experiment for me, but there are several UAE residents who live on
04:36a salary of 1,500 or even less.
04:40How do they manage?
04:41Are they able to save any money at all?
04:44While you might think, no way, I met a man who trains people to save money, whether they
04:50earn dirhams 800 or dirhams 50,000.
04:54Let's find out what he has to say.
04:56Unless you decide yourself, nobody is going to help you to save money, to invest money.
05:03So first you decide yourself to have a comfortable life back home.
05:08I must save money now.
05:13I must invest that saving for the future.
05:18After spending, you cannot save.
05:20So if you decide to save a particular amount, keep that amount aside and leave with the
05:30balance amount.
05:31You always give a formula, 30% of the income we must keep for the future, 30% of the income
05:43we have to spend for our current life, 30% we have to keep to build a house, to educate
05:54our children and all.
05:56We have a 10% balance, out of the 5% for entertainment, 5% for a small insurance.
06:05Each individual has to control the expenditure within that.
06:12That is a culture we have to develop within us.
06:17All the segment of the people, all the income category of the people, they are doing it
06:21perfectly.
06:22There you have it.
06:24Like Mr. Shamsuddin said, no matter how much you earn, there is always room to save.
06:29Why don't you try the Extreme Budget Challenge and tell us what you learnt.
06:34You can comment in the section below or write to us at readers at gulfnews.com.
06:40And always log on to gulfnews.com for more great tips on how to live better in the UAE.