Money & Me: Discipline is key for savings

Naeem Aslam is the chief market analyst at ThinkMarkets, covering commodities, foreign exchange and equities in developing and emerging markets, including the UAE. The 30-year-old has previously worked with Bank of America in equity trading and Bank of New York as a hedge fund trader. Mr Aslam, from Ireland and based in London, is also a regular contributor to media outlets.

How did your upbringing shape your attitude towards money?

I come from a wealthy family but my father always made sure I knew the value of money. He paid for my tuition fees when I was at university but nevertheless made it very clear I would have to fund all my other expenses such as my books, accommodation, travelling, entertainment and clothing. This taught me a lesson in my early days to be economical and intelligent in my spending habits. I worked and studied throughout my student life and saved enough to continue my professional education. So my attitude ­towards money is to think ­before I spend.

How much did you get paid for your first job?

For my very first job during my student days, I only got paid for lunch. Things changed when I started my professional career – I got paid nearly £24,000 (Dh114, 172) a year. It was a lot more than an average graduate wage – all my hard work during my student life and work experience paid dividends.

Are you a spender or saver?

My habits encompass both elements. For me, investing in education is the best investment you will ever make. So I’ve never hesitated to spend an extra pound to get the best education. At the same time, it’s important to have some savings set aside; during the dark days of the financial crisis, it was my savings that helped me live the same standard of life I was used to. So, save at least 10 per cent of your salary every month.

What is your most cherished purchase?

My first house, which I bought a few years ago. I won’t tell you how much it cost but it was a pure bargain and the opportunity of a lifetime.

Have you ever had a month where you feared you could not pay the bills?

I have always maintained discipline in my life so that I never worry about fixed costs like mortgage payments and bills. In my early days, I positioned myself to have at least seven months of savings for such costs in my account at all times. As I’ve progressed in my career, I grow this fund accordingly.

Where do you save?

Banks and some investments in the fixed-income market.

Do you prefer paying by credit card or in cash?

I always pay by credit card. It helps build your credit history, which in turn helps with future investment plans. Also, if you have the correct credit card, you get rewards.

What has been your best investment?

Education. To this day I still constantly invest in upgrading my skills.

What do you most regret spending money on?

Anything that does not give value, whether it’s a meal, clothing or any other thing.

What financial advice would you offer to your younger self?

That education is the tool that can sharpen your skills; it is the very vehicle that is going to get you close to your destiny.

Do you have a plan for the future?

To run my own hedge fund or wealth-management firm. This is what I hope to achieve in the coming years.

What would you raid your ­savings account for?

A proper investment, nothing frivolous. I only dig into my savings account for something that is essential. For me savings are not for entertainment.

jeverington@thenational.ae

Follow The National's Business section on Twitter