Disha Laungani, a student at Manipal University, says moving to the UAE from India has helped teach her financial responsibility.
Disha Laungani, a student at Manipal University, says moving to the UAE from India has helped teach her financial responsibility.

Reaching financial maturity



I learnt my lessons in financial management the hard way. My family lives in Mumbai, where I went to school before moving to Dubai in 2007 for my undergraduate studies. I came to the UAE because I wanted to experience living and studying away from home, and the farthest my parents were willing to send me was Dubai. I now live with both my grandparents and my uncle's family. As a teenager, my father pampered me with loads of gifts and always bought me whatever I wanted. My mother, on the other hand, was the disciplinarian.

Five years ago, when I turned 16, there were two incidents related to money that really taught me to be more prudent in my spending. I never really had a regular allowance, but on our weekly outings, my younger brother and I were given a limit on how much my parents would spend on us. As we grew older, the spending cap increased. When I entered my final year at high school, my mother decided it was time for me to start managing my own money.

We mutually agreed on a monthly allowance of Rs2,000 (about Dh170) for my personal shopping trips to shopping malls and outings with my friends, either at cafes or in the cinema. I still remember how delighted I was the first time my mother handed over the entire amount to me at the start of the month. I had never handled money before, and it was quite exciting to be treated as a grown-up and allowed to handle cash, as it wasn't very common to do so in India at the time.

Delirious with my newly-gained financial muscle, I spent the entire amount that was intended for the month in less than two weeks. I bought new clothes and went to the cinema three or four times to watch the same movie. I even skipped class to go to the movies. My mother was extremely upset when she discovered my irresponsible escapades, and immediately cut off the allowance. I was then given Rs80 (about Dh10) a week and it was primarily to cover my food expenses at school.

At about the same time, my father gifted me a brand new Nokia mobile phone that was worth around Dh1,250. It was a pleasant surprise, as I already had a Sony Ericsson. But I wanted a Nokia because all my friends possessed one, which at the time was the "must-have" brand. Soon after my spending allowance was cut, I was most unlucky when I lost my new Nokia phone. That did not sit well with my parents at all.

My final years in high school were spent regretting my immaturity and carelessness towards gifts and money. My parents had presented me with an opportunity to learn about money, and I squandered it in haste. Moving to Dubai for my higher education has been a huge learning experience. As an undergraduate student of mass communication at Manipal University in Dubai, I have been exposed to young adults who are careful with their spending and work part-time jobs to save up and buy their own car, or finance holidays.

Most Indians arrive in Dubai to work and with the intention of sending money home. I am part of a small minority that moved here to study, while my parents live in India and fund my expenses. My first 18 months here were spent extremely cautiously, as I would convert everything I purchased in Dubai into Indian rupees. This helped restrain me from spending. A latte in India, for example, would cost Rs180 (or Dh15), but the same would cost Dh20 here. It took me a while before I stopped converting prices in dirhams into rupees and comparing values.

To make extra money, I soon discovered small promotions jobs that last a day or two. These odd jobs usually take place during exhibitions and conferences and pay between Dh250 and Dh500 for about six hours of work. I once worked a promotions counter that allowed shoppers to sample chicken nuggets in a mall. I only sign up for these shifts when it doesn't conflict with my academic workload. I graduate this year and intend to work while also pursuing a part-time master's programme in business administration, after which, I want to return to India.

I think it's better to return to India with a master's degree and some international work experience on my resume. I've worked about seven of these promotion jobs in the last 18 months, and they have helped fund my shopping expeditions. I also save up money that I get from relatives during Indian festivals. We have quite a large extended family and tradition requires the older relatives to give the younger ones a little bit of cash during the festivities. I would say I manage to collect about Dh1,000 three times in a year, and now I use these savings to enjoy my holidays at home in Mumbai, when I visit my family twice a year.

My parents are financing my tuition and transportation to university. I don't live in the dormitories, as I have family in Dubai and stay with them. I spend about Dh15 every day on food in the food court. I'm vegetarian, so my dining options are pretty limited and I can keep my eating expenses low. On the social end, I spend time with my friends in Dubai. We mostly hang out in the malls or watch a movie. When in a mall, I always return with a shopping bag filled either with shoes, handbags or accessories. I also enjoy collecting nail paints.

I don't have a fixed amount that I splurge every week, but I'm a careful shopper in terms of waiting for sales and also visiting stores as soon as they open so I can comb them for promotions and special offers. I mostly chat online with my family in Mumbai, but we speak every three days. I must admit that although landline-to-landline phone calls are free within Dubai, I'm not accustomed to the concept as we're charged in India and more used to using our mobile phones.

I end up talking to my friends using my mobile and run up bills of about Dh300 each month. I think this is definitely an area I must cut down on especially as landline communication is extremely cheap here. Most people say that coming out to Dubai spoils you and you end up becoming an incurable consumer. With me personally, it's been the opposite experience. I've matured a lot and understood the real value of money.

I've learnt the concepts of saving, patience and waiting for the right opportunity to spend. * As told to Vinita Bharadwaj

SERIES SCHEDULE

First Test, Galle International Stadium
July 26-30
Second Test, Sinhalese Sports Club Ground
August 3-7
Third Test, Pallekele International Stadium
August 12-16
First ODI, Rangiri Dambulla Stadium
August 20
Second ODI, Pallekele International Stadium
August 24
Third ODI, Pallekele International Stadium
August 27
Fourth ODI, R Premadasa Stadium
August 31
Fifth ODI, R Premadasa Stadium
September 3
T20, R Premadasa Stadium
September 6

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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.”

Bridgerton%20season%20three%20-%20part%20one
%3Cp%3E%3Cstrong%3EDirectors%3A%20%3C%2Fstrong%3EVarious%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Nicola%20Coughlan%2C%20Luke%20Newton%2C%20Jonathan%20Bailey%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
THE SPECS

Engine: 6.75-litre twin-turbocharged V12 petrol engine 

Power: 420kW

Torque: 780Nm

Transmission: 8-speed automatic

Price: From Dh1,350,000

On sale: Available for preorder now