Chris Davies, our Chartered Financial Planner, featured on Virgin Radio Dubai this week, where he discussed the importance of managing your money and saving, especially during the current pandemic.
In the podcast, Chris touched on the importance of properly understanding your financial position, particularly in terms of your income and outgoings. By doing so you can begin to understand your ability to spend and save. He also dicussed investment portfolios, and planning ahead if you are returning to the UK.
Ultimately Chris explained that it was vital to take a personal sense of responsibility about your finances. Particularly now, with salary cuts and redundancies possible, it is important to be realistic and plan accordingly. So if your income has changed, you should amend your output to reflect this. And if you are facing a salary cut, do remember you still have a job, so put good budgeting in place to limit your outgoings.
Chris noted that there are a number of approaches to managing your finances which have been suggested over the years but one of the simplest is to slice your outgoings into thirds: your fixed costs, disposable income and savings. This can be an ambitious target in terms of savings ability but in times like this it shows how important it is to be able to have an emergency fund to fall back on; ideally you should have six months expenditure saved into it.
The podcast also explained what to consider when building an investment portfolio, noting that your own investments should always be aligned with your attitude to risk. Chris touched on the fact that – for many – stock markets can seem daunting, especially now. He advised that there are three areas to always consider when selecting investments: transparency, liquidity and costs.
Chris also touched on the importance of properly planning for a return to the UK, should your personal circumstances prompt or accelerate a move home. At such a time there will be lots to consider, from a range of perspectives including your financial position. If you are returning then it’s important to make sure you seek professional tax advice to get the right plans in place.
Getting professional financial advice can be helpful, especially during volatile times. If you are looking to speak to a financial planning professional in the Middle East, do not hesitate to get in touch with our award-winning team, located in the Dubai International Financial Centre.
Chris Davies, Chartered Financial Planner