Overspending will always have a negative effect on your budget. Spending beyond what you can afford and running up costly debt must be limited to lead a healthy financial life, according to financial experts.
Spending beyond your means can also distract you from your financial goals. Coupled with growing inflation and rising interest rates, overspending has the potential to push more people into high-interest credit-card debt, personal finance experts say.
Shopping is the primary reason people overspend, with 54 per cent of respondents admitting to this, according to a survey by TD Bank of 1,000 American credit-card holders in March this year.
The percentage of consumers who reported overspending on dining out at restaurants and bars tripled compared with 2021, the survey found. While consumers did not report overspending on entertainment purchases such as movies or concert tickets last year, 10 per cent now say this is an area where they overindulge, the findings revealed.
We asked personal finance experts to list common reasons that cause people to overspend and suggest changes that can be made to overcome the habit.
Peer pressure
People are social beings; it might therefore be difficult to decline invitations to parties or dinners, says Devesh Mamtani, chief market strategist at Century Financial in Dubai.
“Sharing our financial goals with individuals who will relate to the situation is one method to prevent habitual overspending,” he says.
However, if a friend’s idea of fun invariably involves spending and they make disparaging comments about your car (or other possessions) or don’t respect your budget, it might be time to find a more supportive group of friends, says Rupert Connor, partner at Abacus Financial Consultants.
Many people believe that society will see them less favourably if they deviate from "keeping up with the Joneses", Mr Mamtani says.
“To live up to society’s norms rather than your own is not the best course of action, because society does not pay your bills,” he says.
Most families overspend because they want to keep up with their friends and relatives, according to Aadil Kadri, associate vice president at insurance broker Continental Group.
“I know families who are struggling to pay monthly instalments for expensive cars and stopped regular investments to keep up with their loan payments,” Mr Kadri says.
“One should not splurge and overspend to impress others. Accept the fact that expenses should not be beyond your capacity to pay back.”
Boredom
Boredom is a major cause of overspending and until it’s pointed out, most people don’t realise how much of a problem it can be, Mr Connor says.
“Unfortunately, this is one of the hardest causes of overspending to conquer because it requires a surprising amount of self-discipline and effort to avoid boredom,” he says.
“It’s best to figure out the situations in life that result in boredom and try to fill them with a more productive habit, such as finding a workout partner and hitting the gym every day after work, starting a side hustle or part-time job or trying to build a business.”
Sharing our financial goals with individuals who will relate to the situation is one method to prevent habitual overspending
Devesh Mamtani,
chief market strategist, Century Financial
Most of us are impulsive and spend without having a budget in place or understanding the after-effects of the purchase, Mr Kadri says.
Spend only on products and services you need now or in the immediate future. Control impulsive spending and postpone the decision to buy on the same day, he suggests.
Marketing offers
People tend to get carried away with buy-one-get-one-free offers and discounts designed to motivate them to overspend, according to Mr Kadri from Continental Group.
“People spend more than needed on offers such as spend a minimum of Dh200 and get 25 per cent off,” he says.
“To be eligible for this 25 per cent discount, you have to buy from the same store again, which eventually leads us to spend more. It’s a vicious cycle.”
Advertising conveys the idea that we need to look a specific way to be presentable, Mr Mamtani says.
There is the idea that to be happier, we need more, he says. But accepting this messaging might result in high credit-card debt, Mr Mamtani says.
“When aiming to remain within budget, place more emphasis on needs rather than wants,” he says.
Misuse of credit cards, BNPL schemes
Although credit cards provide convenience and make keeping track of expenses simple, they also provide a path to massive debt, Mr Mamtani says.
Individuals who pay with a credit card instead of cash can spend up to 18 per cent more, he says, citing research by US data analytics company Dun & Bradstreet.
“Halt the cycle: use cash when shopping in places where you tend to splurge to force yourself to stay inside your spending limit,” Mr Mamtani says.
Credit cards encourage you to spend more and offer options to pay only the minimum monthly instalment, Mr Kadri says.
Banks will only earn if you pay the minimum amount on your balance, so they will encourage consumers to do it, he says.
“Buy-now-pay-later strategies have been the talk of the town, especially in the automotive industry,” he says.
“Do not get carried away with such offers unless you really need the product.”
Special occasions
People tend to frequently overspend on special events, such as birthdays or Christmas.
By setting up special savings accounts designated exclusively for certain expenses, such as birthdays, you can budget for occasional costs, Mr Mamtani says.
“Have you noticed how many luxury holidays people in the UAE seem to take compared with counterparts living in their home country?” Mr Connor says.
“A cap needs to be placed on excessive spending in this way or else it will eat away at everything that is being earned. The key to stopping spending too much money in these ways is to create better money habits in your daily life.”
Try to replace these activities and habits with a more virtuous way of living, he says.
The key to stopping spending too much money is to create better money habits in your daily life
Rupert Connor,
partner, Abacus Financial Consultants
Creating spending rules is perhaps a more effective way, rather than coming up with a plan that puts a restriction on how much you can spend, Mr Connor says.
A budget can be a numerical rule that’s hard to follow because it encompasses all our different expenses, he says.
“Action-based rules tend to be easier to maintain over the long term. An example of this rule is to only pay with cash when you go out to eat with friends — this way, you can’t overspend because you literally don’t have the money.”
Ignoring petty expenses
Most people tend to ignore petty expenses, Mr Kadri says.
“For instance, people use their car to go to nearby or walkable locations. Or, most individuals use Salik even on public holidays when there is relatively no traffic. Try to use alternative roads when one is not in a hurry,” he says.
“Avoid wasting utilities such as the air conditioner and electricity and switch off appliances when not needed. Also, avoid buying expensive gifts on birthdays, anniversaries and other celebrations.”
Lending money to friends
It’s important to help friends, but it’s even more important to take care of one’s financial health, Mr Connor says.
Always track your loans to friends closely and make sure they stay within a balanced budget, he suggests.
“Also, be clear about whether it is a loan or a gift and set expectations accordingly,” Mr Connor says.
“To remove all risk, it is best not to loan money to friends at all. If you do, then ask them to sign a document if it is a large amount.”
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
HERO%20CUP%20TEAMS
%3Cp%3E%3Cstrong%3E%3Cins%3EContinental%20Europe%3Cbr%3E%3C%2Fins%3E%3C%2Fstrong%3EFrancesco%20Molinari%20(c)%3Cbr%3EThomas%20Detry%3Cbr%3ERasmus%20Hojgaard%3Cbr%3EAdrian%20Meronk%3Cbr%3EGuido%20Migliozzi%3Cbr%3EAlex%20Noren%3Cbr%3EVictor%20Perez%3Cbr%3EThomas%20Pieters%3Cbr%3ESepp%20Straka%3Cbr%3EPlayer%20TBC%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%3Cins%3EGreat%20Britain%20%26amp%3B%20Ireland%3C%2Fins%3E%3C%2Fstrong%3E%3Cbr%3ETommy%20Fleetwood%20(c)%3Cbr%3EEwen%20Ferguson%3Cbr%3ETyrrell%20Hatton%3Cbr%3EShane%20Lowry%3Cbr%3ERobert%20MacIntyre%3Cbr%3ESeamus%20Power%3Cbr%3ECallum%20Shinkwin%3Cbr%3EJordan%20Smith%3Cbr%3EMatt%20Wallace%3Cbr%3EPlayer%20TBC%3C%2Fp%3E%0A
Global state-owned investor ranking by size
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The specs
Engine: 2.0-litre four-cylinder turbo
Power: 268hp at 5,600rpm
Torque: 380Nm at 4,800rpm
Transmission: CVT auto
Fuel consumption: 9.5L/100km
On sale: now
Price: from Dh195,000
Another way to earn air miles
In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
Blonde
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
FROM%20THE%20ASHES
%3Cp%3EDirector%3A%20Khalid%20Fahad%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Shaima%20Al%20Tayeb%2C%20Wafa%20Muhamad%2C%20Hamss%20Bandar%3C%2Fp%3E%0A%3Cp%3ERating%3A%203%2F5%3C%2Fp%3E%0A
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%3Cp%3E%3Cstrong%3EAuthor%3A%3C%2Fstrong%3E%20Zeina%20Hashem%20Beck%3Cbr%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20112%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20Penguin%20Books%3Cbr%3E%3Cstrong%3EAvailable%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
World Sevens Series standing after Dubai
1. South Africa
2. New Zealand
3. England
4. Fiji
5. Australia
6. Samoa
7. Kenya
8. Scotland
9. France
10. Spain
11. Argentina
12. Canada
13. Wales
14. Uganda
15. United States
16. Russia
Top 10 in the F1 drivers' standings
1. Sebastian Vettel, Ferrari 202 points
2. Lewis Hamilton, Mercedes-GP 188
3. Valtteri Bottas, Mercedes-GP 169
4. Daniel Ricciardo, Red Bull Racing 117
5. Kimi Raikkonen, Ferrari 116
6. Max Verstappen, Red Bull Racing 67
7. Sergio Perez, Force India 56
8. Esteban Ocon, Force India 45
9. Carlos Sainz Jr, Toro Rosso 35
10. Nico Hulkenberg, Renault 26
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EDate%20started%3A%3C%2Fstrong%3E%202020%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Khaldoon%20Bushnaq%20and%20Tariq%20Seksek%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%20Global%20Market%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20HealthTech%3Cbr%3E%3Cstrong%3ENumber%20of%20staff%3A%3C%2Fstrong%3E%20100%3Cbr%3E%3Cstrong%3EFunding%20to%20date%3A%3C%2Fstrong%3E%20%2415%20million%3C%2Fp%3E%0A
Donating your hair
• Your hair should be least 30 cms long, as some of the hair is lost during manufacturing of the wigs.
• Clean, dry hair in good condition (no split ends) from any gender, and of any natural colour, is required.
• Straight, wavy, curly, permed or chemically straightened is permitted.
• Dyed hair must be of a natural colour
Sweet%20Tooth
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
FIGHT%20CARD
%3Cp%3E%3Cstrong%3EFeatherweight%204%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EYousuf%20Ali%20(2-0-0)%20(win-loss-draw)%20v%20Alex%20Semugenyi%20(0-1-0)%3Cbr%3E%3Cstrong%3EWelterweight%206%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBenyamin%20Moradzadeh%20(0-0-0)%20v%20Rohit%20Chaudhary%20(4-0-2)%3Cbr%3E%3Cstrong%3EHeavyweight%204%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EYoussef%20Karrar%20(1-0-0)%20v%20Muhammad%20Muzeei%20(0-0-0)%3Cbr%3E%3Cstrong%3EWelterweight%206%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EMarwan%20Mohamad%20Madboly%20(2-0-0)%20v%20Sheldon%20Schultz%20(4-4-0)%3Cbr%3E%3Cstrong%3ESuper%20featherweight%208%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBishara%20Sabbar%20(6-0-0)%20v%20Mohammed%20Azahar%20(8-5-1)%3Cbr%3E%3Cstrong%3ECruiseweight%208%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EMohammed%20Bekdash%20(25-0-0)%20v%20Musa%20N%E2%80%99tege%20(8-4-0)%3Cbr%3E%3Cstrong%3ESuper%20flyweight%2010%20rounds%3A%3C%2Fstrong%3E%3Cbr%3ESultan%20Al%20Nuaimi%20(9-0-0)%20v%20Jemsi%20Kibazange%20(18-6-2)%3Cbr%3E%3Cstrong%3ELightweight%2010%20rounds%3A%3C%2Fstrong%3E%3Cbr%3EBader%20Samreen%20(8-0-0)%20v%20Jose%20Paez%20Gonzales%20(16-2-2-)%3C%2Fp%3E%0A
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
EA Sports FC 24
Scorecard
Scotland 220
K Coetzer 95, J Siddique 3-49, R Mustafa 3-35
UAE 224-3 in 43,5 overs
C Suri 67, B Hameed 63 not out
