Women today are living through a money revolution. We can earn in whichever way we please and we're not only earning good money, we're also equally empowered to spend it at every turn.
Many have labelled this generation the She-conomy. The industries experiencing the most growth these days are geared primarily towards women - think fashion, beauty and entertainment as just a few. But this financial independence comes at a price and if not handled with care, our money matters can quickly head downwards.
Often it takes a major life event to start taking our money seriously. My "ah ha" moment came when I took a career break to have a baby. Whether it was the influx of hormones or a new-found need to protect, I saw parenthood as the catalyst to focus on our financial future.
And so I launched www.womenmoneyandstyle.com. Initially it was an outlet to blog about the transition in a language women could understand. Much to my surprise, I found I wasn't alone.One recurring theme with my readers is debt - avoiding it, but more importantly, getting out of it. Ending the debt cycle begins with empowering ourselves with our minds; shifting away from victimhood and acknowledging that we are capable of change.
When managing debt, I believe in starting with these eight tips:
1: Your health is your wealth
There are two types of insurance you should focus on - life insurance and critical illness insurance, whether you are married or single. Should an unexpected illness or accident occur, you'll rest easier knowing your money matters are in order.
2: Automate your savings
Wealth creation begins with organising your finances. By opening an offshore saving structure and a locally held e-saver bank account, you can cover all of your fixed quarterly costs with a slightly better interest rate. Most banks offer both a savings as well as a deposit account - this is essentially a way of budgeting your money to improve your cash flow.
3: Do your credit check
Credit card debt can quickly get out of control if misused and misunderstood. Ask your bank about every specific charge you are paying, such as interest rates on late payments. Nearly all those with bad debts are guilty of not reading the small print.
4: Work out your budget
Think of having a budget as doing a monthly stocktake of your financial status - knowing what's going out and what's coming in each month will enable you to live a better balanced life. Budgeting beginners should try iWallet, a free iPhone app that tracks monthly expenses or note your spending in a small diary.
5: Activate DCA
Dollar cost averaging or DCA is a regular investment or saving strategy, which takes the form of investing regular amounts into a particular investment or portfolio. How does it work? When you invest in regular monthly instalments (say US$100 monthly for 10 months), you are purchasing more shares when prices are low and less shares are purchased when prices are high. As the markets go up and down, you benefit from the market changes in the long term. These fixed investments take the worry out of investing as, over time, regular saving could help average out any market volatility.
6: Understand how compound interest works for you
As Albert Einstein said: "Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn't, pays it." Compound interest refers to interest added to the principal, so that from that moment on, the interest that has been added also earns interest. A bank account, for example, may have its interest compounded every year. So an account with Dh1,000 initial principal and 20 per cent interest per year would have a balance of Dh1,200 at the end of the first year, Dh1,440 at the end of the second year, and so on. For the shopper, this unfortunately works against you if your credit card is not paid off. If you knew that a Dh2,000 top will cost you Dh10,000 by the time you finally paid for it, would you have bought it? Probably not.
7: Educate your kids
Money lessons should start earlier than high school. How early? Well, consider starting the topic as soon as they turn five or realise money buys things.
8: Smart style
Be efficient with your clothing budget. Identify your signature look - clothes that fit your lifestyle and look great. Divide them into categories - evening wear, daywear, around-the-house, casual and smart casual. Next, pick out five outfits under each title and organise your wardrobe accordingly. You'll soon find less need for the latest trends, but rather a mere update of what you already own. At the end of the day if you are in debt, do something. Don't bury your head in the sand; it will only get worse.
Janelle Malone is a wealth commentator, writer and author. You can read her blog at www.womenmoneyandstyle.com.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Sunday's games
All times UAE:
Tottenham Hotspur v Crystal Palace, 4pm
Manchester City v Arsenal, 6.15pm
Everton v Watford, 8.30pm
Chelsea v Manchester United, 8.30pm
The five pillars of Islam
If you go...
Etihad Airways flies from Abu Dhabi to Kuala Lumpur, from about Dh3,600. Air Asia currently flies from Kuala Lumpur to Terengganu, with Berjaya Hotels & Resorts planning to launch direct chartered flights to Redang Island in the near future. Rooms at The Taaras Beach and Spa Resort start from 680RM (Dh597).
The%20specs
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In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Brief scores:
Manchester City 3
Bernardo Silva 16', Sterling 57', Gundogan 79'
Bournemouth 1
Wilson 44'
Man of the match: Leroy Sane (Manchester City)
Queen
Nicki Minaj
(Young Money/Cash Money)