Money, Money, Money — Swedish pop group Abba were dreaming about it when they released their hit song in 1976.
Fast forward to October 2021 and the fantastic foursome had reportedly rung in a fortune of more than $1 billion.
If that is not the definition of securing your financial future, I am not sure what is.
Unfortunately, we can't all be billionaires. Of the approximately eight billion people walking the planet, only 3,331 have achieved this feat, according to Statista.
China leads the world with 1,133 billionaires and the most recent reports suggest that only 13 people in the UAE can stake such a claim.
With that said, Dubai also houses 200-plus centimillionaires (people with a net worth of more than $100 million) and around 68,000 millionaires, according to the Henley Global Citizens Report.
In Abba’s words: “... and still there never seems to be a single penny left for me — that’s too bad.”
But there is still plenty of money to go around; RankRed data shows that about $40 trillion is currently in circulation.
I think it is safe to say that you cannot secure all of it, but with a little bit of strategy and inspiration from the "Abba effect", you can get enough to solidify your family’s financial future.
Long-term horizon
Financial savviness is similar to a healthy diet. If you are trying to get in shape, it might be tempting to chow down on a burger and fries before washing it down with a milkshake, but it is not going to help you reach your long-term fitness goals.
You should opt for salads, water and tea while still enjoying a tasty treat from time to time — when you can afford to.
So, rather than thinking primarily about what’s best right now, your family will be better served if you think about what is best for them five, 10 or 15 years ahead.
For instance, if you are a new parent, or about to be one, you can open a high-yield savings account for your children and deposit increments of money that will compound over time.
With an initial deposit of $100, and then an additional $100 every month for 18 years at a 10 per cent annual percentage yield, your child will be able to start their adult life with a cushion of more than $55,000.
It will also set an example for them to do the same as they continue in life, and if they do this until they are 46, they will have more than $1 million in savings, according to consumer financial services company Bankrate.
Secure your life, secure their future
Last October, Zurich International Life polled 500 UAE-based respondents to understand how they would cope financially should they be diagnosed with a severe illness.
About eight in 10 were worried that becoming seriously ill would deplete their savings.
These concerns explain why more people have been opting for insurance coverage since the Covid-19 pandemic to protect themselves and their families from unseen risks.
Life insurance is an often overlooked component of financial security but two strong options are term life insurance and permanent life insurance.
The former offers coverage for a set amount of time, while the latter covers you for your entire life.
Depending on your situation and budget for premiums, select the best plan for you to add another layer of financial security if you pass away
Bas Kooijman,
chief executive of DHF Capital
Depending on your situation and budget for premiums, select the best plan for you to add another layer of financial security if you pass away.
Seek financial assistance
Setting clear goals, budgeting to save, paying off debts and investing when possible are all strongly encouraged means of securing your family’s financial future.
However, if you choose to take on the responsibility of ensuring that the money you make and save is for the betterment of your family, it is important to view your finances objectively.
With 20 per cent of UAE residents saying they have less disposable income than a year ago, according to a recent YouGov survey, it could be helpful to seek guidance from a trusted financial adviser.
Since money is often an emotional subject, it is easy for your choices to become skewed based on what is most exciting, opportunistic or enjoyable at the moment.
These short-term decisions have long-term ripple effects that tend to produce less-than-ideal results.
Financial advisers can help you avoid these pitfalls by outlining a clear strategy that places you and your family on the right path.
By looking at your financial situation holistically, an adviser will take into account your goals and risk profile to devise a plan that is achievable for you.
The question is, do you want to be Abba in 1976 or 2021?
Bas Kooijman is the chief executive of DHF Capital, a securitisation company for financial services
Killing of Qassem Suleimani
BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
Did you know?
Brunch has been around, is some form or another, for more than a century. The word was first mentioned in print in an 1895 edition of Hunter’s Weekly, after making the rounds among university students in Britain. The article, entitled Brunch: A Plea, argued the case for a later, more sociable weekend meal. “By eliminating the need to get up early on Sunday, brunch would make life brighter for Saturday night carousers. It would promote human happiness in other ways as well,” the piece read. “It is talk-compelling. It puts you in a good temper, it makes you satisfied with yourself and your fellow beings, it sweeps away the worries and cobwebs of the week.” More than 100 years later, author Guy Beringer’s words still ring true, especially in the UAE, where brunches are often used to mark special, sociable occasions.
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
A cheaper choice
Vanuatu: $130,000
Why on earth pick Vanuatu? Easy. The South Pacific country has no income tax, wealth tax, capital gains or inheritance tax. And in 2015, when it was hit by Cyclone Pam, it signed an agreement with the EU that gave it some serious passport power.
Cost: A minimum investment of $130,000 for a family of up to four, plus $25,000 in fees.
Criteria: Applicants must have a minimum net worth of $250,000. The process take six to eight weeks, after which the investor must travel to Vanuatu or Hong Kong to take the oath of allegiance. Citizenship and passport are normally provided on the same day.
Benefits: No tax, no restrictions on dual citizenship, no requirement to visit or reside to retain a passport. Visa-free access to 129 countries.
At a glance
- 20,000 new jobs for Emiratis over three years
- Dh300 million set aside to train 18,000 jobseekers in new skills
- Managerial jobs in government restricted to Emiratis
- Emiratis to get priority for 160 types of job in private sector
- Portion of VAT revenues will fund more graduate programmes
- 8,000 Emirati graduates to do 6-12 month replacements in public or private sector on a Dh10,000 monthly wage - 40 per cent of which will be paid by government
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
CHELSEA'S NEXT FIVE GAMES
Mar 10: Norwich(A)
Mar 13: Newcastle(H)
Mar 16: Lille(A)
Mar 19: Middlesbrough(A)
Apr 2: Brentford(H)
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
EXPATS
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Ronaldo's record at Man Utd
Seasons 2003/04 - 2008/09
Appearances 230
Goals 115
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Mohammed bin Zayed Majlis
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