Master Financial Discipline for the Win! Here’s How.

By Shivangi - 25 Apr 2022 Last Updated: 20 May 2022
Master Financial Discipline for the Win! Here’s How.

Financial discipline refers to one's capacity to keep to financial strategies that one has devised. The plans should correspond to the quantity of money saved and spent. Personal Loan discipline refers to meeting established goals, which might include short-term financial needs, long-term goals such as retirement, and so on. The majority of expatriates desire to live in the UAE because it offers them a tax-free environment. According to the HSBC Expat Explorer, approximately 67 percent of UAE expats have increased their disposable income. This is primarily due to the potential for larger earnings.

Thus in today’s blog Dhanguard will discuss why as an Expat you should have Financial Discipline and some tips to manage them as well. So without any further ado, Let’s learn!

Why should you have Financial Discipline?

Below mentioned are the reasons explained as to why Financial Discipline is essential for you-

Returning Home and Settling

Expats working in other countries work hard to earn more money and then return to their native country with the money they have saved. Many foreigners are unable to settle in the UAE, and job market growth may not be as anticipated. So, in order to achieve their financial objective as quickly as feasible, one should save from day-to-day activities.

Returning Home During Emergencies

Expats may return home for a variety of reasons. Whatever the cause, it is critical to recognise that returning to one's homeland is not as simple as it appears. Expats return for a variety of reasons, including visa expiration, illness of a family member, homesickness, difficulties adjusting to a new environment, job loss, and so on.

The reasons can be numerous and may arise out of nowhere, so being financially prepared for such events can help you make sound decisions for yourself and your family. If a person is not financially stable but has a lot of money, it can lead to debt and dependency.

Expats have Limited Credit Options

Almost all banks have a fixed limit for expats that is generally lower. This can be stressful because you won't be able to get the necessary finances. In the event that financial aid is required, one should be prepared for slightly different interest rates and smaller quantities. It is preferable to preserve more money so that high-interest personal loans in the UAE can be avoided.

Reducing Concerns about Future Financial Situations

Having a strong sense of financial discipline can assist to alleviate anxiety about future financial obligations. When one realizes that they have saved some money for an emergency, they can exhale a sigh of relaxation, which reduces stress and improves health.

Retirement Benefits are Rarely Granted to Expats

In 2019, the UAE began looking at retirement benefits for foreigners, but nothing tangible has been formed as of yet. As a result, an expat must plan for his or her future by setting aside money for retirement. The retirement age is 60 years old, however it can be increased to 65. As a result, one should set away money for retirement plans with care and intention.

Expats lose their Jobs in case of Crises

This is a fact that every expat understands, and no matter how many changes are implemented, the foreigners will always be the first to lose their employment. As a result, it's important to remember this and practise effective personal financial management. This is something that should be kept in mind at all times, and enough money should be set aside to deal with any unforeseen circumstances.


Useful Tips to Manage your Finances

Below mentioned are some of the useful tips which you can implement in order to manage your Finances-

Establish a Financial Plan

Making a budget is a challenge for everyone, not just expats. You'll have to separate your wants from requirements, which can be challenging. Set aside a set amount of money for savings, ideally around 20% of your total budget. Make a budget that you can stick to, as this will ultimately determine how much money you can save and how much money you can keep. It's not simple to stick to a budget. However, if one can keep it, they will notice how simple and stress-free life may become.

Make a Home Investment

Investing is an important aspect of protecting one's financial future. Investments made in the UAE may prove to be more profitable than those made outside. You should concentrate on what your country's primary investment vehicles are, such as gold and real estate. Making a broad profile, both in terms of geography and investment tools, is critical.

Keep your Bank Account Open at Home Branch

It is best to keep all of your choices open if you have recently relocated to a new country. Maintaining a bank account entails setting aside some funds. In a new nation, it is common to fall into traps and confront frauds, thus it is always a good idea to have a secure backup plan. It's likely that you'll need to return to your home country and will require access to funds; in that case, this is the ideal option to maintain some cash on hand in your hometown.

Complete the Conversions

When you relocate to a new nation, you must begin spending and earning in the local currency. Understanding the worth of this new money takes time. As a result, when making transactions in Dirham, it is preferable to mentally convert it to your own currency, as the value of one's own currency is deeply ingrained in us.

Read More: Boost your Financial Success in 2022 with these Tips! 

Take Charge

It is critical to take charge of your finances, which can be tough when you are in a different nation and are unfamiliar with the financial laws and practices. There are several ways to learn about a country's finances, including reading newspapers, blogs, and other sources. Speaking with your banker can also provide you with information about your financial situation and the many investment alternatives available to you.


Maintaining financial discipline is crucial for everyone, not only Foreigners and Expats, because it ensures a secure future and alleviates future anxiety. However, because expats have more uncertainty about the future, personal financial discipline is extremely important. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our Website as well.

Investments is made simple and hassle-free with Dhanguard in Dubai, UAE. We provide you various investment options like Index Fund, Gold, Mutual Fund, Stocks, SIPs, Bonds, Fixed Deposite, Sukuks with the minimum possible trouble including paperwork & payments.

By Shivangi

25-Apr, 2022

Investments Related FAQ

Frequently Asked Questions

  • Why should one Invest?

    Earning money now is insufficient, since it may not be enough to meet life's financial objectives. As a result, it is critical to spend money. Saving money in the bank is the same as giving up an opportunity to make money. It is crucial to invest carefully in the different plans available on the market, choosing the one that is ideally tailored to your objectives.

  • What is the eligibility to buy Investment Plans?

    With new technologies and goods, the investment market is rising by the day. The conditions for investing in different forms of investment instruments differ depending on the providers in the UAE.

  • What are the best Investment for Expats in UAE?

    Expats can invest in stocks, bonds, real estate, cash, UAE mutual funds, or other forms of funds in the UAE.

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