Money&Me: It's always best to live within your means

Daphne Cota is the exhibition director at Informa Exhibitions, overseeing the The Bride Show in Dubai and Abu Dhabi - the leading wedding events in the Middle East. Ms Cota, who moved to the UAE from India 12 years ago, says moving into the bridal industry in 2003 was a natural extension of her previous career in fashion.

Describe your financial journey so far.

From the outset, I have always been very independent. My mother was a teacher before I was born and my father a cost accountant and though my mother came from a very influential and rich family and my father was middle class, we did not try to live the lifestyle she was from. Instead, we always lived within our means and that was an early start to me becoming independent. Soon after graduating from fashion school, I started my own business, which gave me a taste of financial independence. When I held my first exhibition for my clothing line, everything was sold out on the very first day. It taught me to value money as I had to work for it and hence use it appropriately. Today, when I have more savings and look back, I think that it is good to be financially independent at an early age.

Are you a spender or a saver?

I was a little of both, but now I am trying to save more. Earlier, I would buy something I liked on a whim, but now I have realised that it helps to ask myself if I really need it and what I would have to give up to buy this thing.

What is your philosophy towards money?

Money is important, but it cannot buy you health and happiness. I have family and friends who can afford to buy whatever they want, but certain incidents in their lives have meant they are not happy, so it's not everything.

What has been your most valuable financial lesson?

The best lesson was learnt from my father, who taught me to plan how to spend my earnings and stay within my means instead of overspending. When I was a child, he opened a recurring account for me, which meant he had to deposit a fixed amount every month. He would encourage me to deposit any extra pocket money so that it would accumulate. In those days it was just a few rupees, but I learnt that when you put a little aside it can become a lot.

Why did you decide to get involved in the wedding business?

Having been in the fashion business, I felt that moving to the wedding industry and specifically wedding exhibitions was a natural transition for me as it still gave me the opportunity to keep in touch with up-and-coming designers while running the exhibition business. As a small-business owner myself, I can relate better to our exhibitors, some of whom are from a similar background and I am proud of the fact that The Bride Show gives them the platform to grow their businesses.

Have you experienced any financial difficulties along the way?

When I gave up a very well-paying job as an assistant brand manager for Clarins in Oman, I came back to Dubai to pursue my first passion, which was fashion. I came back to head the fashion design department of an educational institute, earning only Dh6,000 and even though I had to spend some of my savings to manage at times, I didn't give up.

What has been your biggest financial challenge?

Buying my apartment in Dubai at the peak of the real estate market. In Goa, I have a beautiful home on the beach that has appreciated in value and will be forever mine. But the property I bought in Jumeirah Lake Towers in 2008 was not a good investment. I didn't look into it enough and it was more of an impulse buy. I just thought that because rents were so high at the time I could just buy and move in, but after the crash I mentally couldn't prepare myself to move because nothing around there was ready and it was still a construction site. I have rented it out and I guess if I hang onto it long enough it will go back up in value. That's the hope that everyone is hanging onto here.

What do you like to invest in?

I am very conservative when it comes to savings and believe only in cash and real estate.

Is money important to you?

Yes, but definitely not the most important thing in life. I have learnt along the way that one needs enough to keep you going and enjoy some of the good things in life.

What do you like to spend your money on?

I am not very extravagant, but I like saving up for something I really want. I had to save Dh500 each month for several months to buy myself a Cartier watch. I also love to travel and enjoy a couple of holidays a year with my 16-year-old daughter.

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Financial considerations before buying a property

Buyers should try to pay as much in cash as possible for a property, limiting the mortgage value to as little as they can afford. This means they not only pay less in interest but their monthly costs are also reduced. Ideally, the monthly mortgage payment should not exceed 20 per cent of the purchaser’s total household income, says Carol Glynn, founder of Conscious Finance Coaching.

“If it’s a rental property, plan for the property to have periods when it does not have a tenant. Ensure you have enough cash set aside to pay the mortgage and other costs during these periods, ideally at least six months,” she says.

Also, shop around for the best mortgage interest rate. Understand the terms and conditions, especially what happens after any introductory periods, Ms Glynn adds.

Using a good mortgage broker is worth the investment to obtain the best rate available for a buyer’s needs and circumstances. A good mortgage broker will help the buyer understand the terms and conditions of the mortgage and make the purchasing process efficient and easier.

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.

Top financial tips for graduates

Araminta Robertson, of the Financially Mint blog, shares her financial advice for university leavers:

1. Build digital or technical skills: After graduation, people can find it extremely hard to find jobs. From programming to digital marketing, your early twenties are for building skills. Future employers will want people with tech skills.

2. Side hustle: At 16, I lived in a village and started teaching online, as well as doing work as a virtual assistant and marketer. There are six skills you can use online: translation; teaching; programming; digital marketing; design and writing. If you master two, you’ll always be able to make money.

3. Networking: Knowing how to make connections is extremely useful. Use LinkedIn to find people who have the job you want, connect and ask to meet for coffee. Ask how they did it and if they know anyone who can help you. I secured quite a few clients this way.

4. Pay yourself first: The minute you receive any income, put about 15 per cent aside into a savings account you won’t touch, to go towards your emergency fund or to start investing. I do 20 per cent. It helped me start saving immediately.

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Salah in numbers

€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.

13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.

57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.

7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.

3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.

40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.

30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.

8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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