A Beginner's Guide to Dubai Expense Planning

Previously, I have written about Dubai visit plan in my blog : Dubai - As I saw it  and how I found job in Dubai : Job Hunting in Dubai. In this post I will continue about the life in Dubai and how we can serve the purpose of finding job in Dubai i.e. Save some money !

Well, I have heard many people saying that they would save a lot of money if they ever lived in the UAE. Normally, what happens is that people don’t understand or do not consider the hidden expenses in the UAE. They estimate the total cost of living on the following Rent, Food and Transport only, but in real there are numerous other expenses also involved when it comes to living here.

Neither am I a financial expert, nor can I guarantee you that the below mentioned are the only expenses that you are bound to bear. I will share with you my personal experience of living in the UAE for 2 years and the experiences of my friends, to give you a better and a clear picture of the additional expenses that you’re likely to incur here.

Rent—Eats Away the Big Chunk of Your Income

The major chunk of your salary would go to this expense ! Each year you would listen to stories like rents are increasing or rents are decreasing but on an average rent will be somewhat similar. There is a variety of options from bed space to partition, studio apartments and 2/3 bedroom apartments. Rents of these apartments would vary depending on which area and which option you choose.

• Average (1 Bedroom) rent in Dubai 35k / Annum approx.
• Average (1 Bedroom) rent in Sharjah = 25k / Annum approx.
• Average (1 Bedroom) rent in Ajman = 18k / Annum approx.

The rental payments are done through 1, 2, 3, 4 or 6 cheques and apart from the rental payment, there are a number of security deposits and Rental Contract Fees (Govt) involved. Although the security deposits (Utilities / Building etc) are refundable,you will be paying them in advance so consider this amount as an additional cost.

Pro Tip:

Don’t forget to consider the agent's commission, as most of the apartments are rented through Real Estate Agents, and you are bound to pay the commission (3% to 5%). This means an average of 3,000 in addition to you Annual rent. 

Food—Comparatively Feasible

The only thing feasible about Dubai is the food. You could have a variety of food at reasonable prices. From 1 AED Paratha / Roti to 5 AED Shawarma.... from desi to Chinese and from your favourite Fast Food chains to High End Restaurants, you could have whatever you like and whatever your budget allows you ! 

• Average cost of breakfast = 5 AED
• Average cost of Lunch = 10 AED
• Average cost of Dinner = 10 AED 

Pro Tip:

• A lot of neighboring cafeterias and restaurants offer Monthly meals package
  (for as low as 350 AED / Month for 2 meals a day) 
• Other than that Homemade food is also available by Female Entrepreneurs are who deliver great tasting food for a little bit higher price than the normal cafeterias. 

Grocery—Shop Smartly to Save Big

If you are cooking at home, then you can save some money. Grocery includes milk,washing powders, fruits and many other cooking ingredients. Dubai and Sharjah are hubs of Hypermarkets so, the best way to do grocery and save good money is to shop from these Hypermarkets.

Pro Tip:

• Mobile apps like ClicFlyer and UAE Offers could help you plan your weekly/monthly grocery according to the recent offers from each Hypermarket.
• Always buy groceries at the weekend as during weekdays the prices are higher than on the offer days 

Utilities / and Internet—Another Add on

An average monthly bill of a 1 bedroom apartment is around 400 AED for Water, Gas and Electricity and the minimum monthly internet package is 300 AED. 

Transportation

Depending on where you live and where exactly is your office. You have variety of options like Cab, Uber, Metro Bus , Metro Train and Carpooling with your office colleagues.

Pro Tip:

If you are working in Dubai , find a location near Metro Station  

Weekend Outings

They say that you live only on the weekends in Dubai and I agree to it  because the rest of the days you are either too tired or cant risk getting late next morning. 

Pro Tip:

• Plan your weekend and purchase your deals accordingly from various websites and apps to save you a lot of money. 
• www.Groupon.ae
• www.Cobone.com
• www.Hitthedeals.com etc
• Smiles App Offer amazing deals on good discounts 
• Watch movies on half prices on the weekdays   

Medical

If you are not medically insured in Dubai then it is going to be very difficult. Even a visit to a normal General Doctor is going to cost you around 150-200 AED (including medicines).

Pro Tip:

• It is compulsory for companies now to get their employees medically insured.
• For families insurance ask your company's HR department to include your family included at a better rate.
• Compare features, fees and terms/conditions on website like Bayzat.com

Schooling

If you have school going kids then it is about time you realize you will not be saving any money :)

Pro Tip:

• Minimum age for nursery is 3 years and for schooling is 4 years, if your kids are younger than this age then you have to start saving from day one for their schooling.

Annual Trip

Normally, we don’t consider it in our budgets and that is one of the biggest mistakes you would do while planning your budgets. Because a visit to your home country means ticket and other expenses while you stay, gifts for the friends and family and on your way back you will be buying stuff for yourself and your family.

Pro Tip:

• Plan your trip at least 2-3 months in advance as you can save a lot of money while booking your tickets.

Remittance to Home Country / Emergency Money

Monthly remittance for parents and family support as that is our prime responsibility. Secondly, always keep at least 2 to 3 months salary as emergency money as the uncertainty of Dubai job market is well documented. 

Pro Tip:

• The reason for 2-3 months salary as emergency money is to give you enough breathing space in case of job loss (God Forbid) and it will give you enough time to search for job on 3 months visit visa without worrying about the money.

Savings

Remember you came to Dubai for savings :) !