The number of workers in the UAE is the sixth-highest in all of the earth. According to Human Rights Watch, 88 percentage of the country’s 10 million residents are immigrants from other countries.
According to the ILO, these expat staff in the UAE made more than $47.5 billion in remittances to their home countries in 2021, making the region the second-largest cause worldwide.
A study conducted in 2022 by the insurance company Friends Provident International, which found that 45 percent of people said they had not yet begun saving for their beautiful years, supports this data.
Lack of knowledge of the equipment and fundamental principles available to manage their money, which, if available, may help them lessen their loan or save for their retirement years, is a major barrier that many employees and workers encounter when doing so.
Century Financial, the state’s top investment services provider, teamed up with the University of Dubai and Principles of Responsible Management Education (PRME) to launch a fund link titled “Financial Freedom for All” in an effort to raise financial literacy among the blue collar work force in the UAE.
The guide aims to provide blue-collar and front-line workers with important financial skills while simplifying economic literacy for them.
The start of “Financial Freedom for All” marks a turning point in our quest towards empowering every member of our society, said Century Financial chairman and CEO Bal Krishen during the opening.
“By improving fiscal education, we are not only promoting personal development but also a more stable and knowledgeable workplace.” This perfectly reflects the PRME philosophy and our dedication to education and dependable management.
The guide is intended for everyone, but particularly for the low-income or blue-collar work power, which makes up upward to 60% of the UAE’s immigrant population.
The release of “Financial Freedom for All” is a critical step in our quest to extend the benefits of learning beyond the school, according to Dr. Eesa Mohammed Bastaki, president of the University of Dubai, who wrote the foreword to the link. We are dedicated to providing our neighborhood with the knowledge and abilities required for financial freedom and accomplishment, particularly in the most vulnerable areas.
Here is a quick summary of the complete link to investing, budgeting, and saving for the future of your finances:
Establishing a strong financial basis is essential in the pursuit of unlocking wealth-building secrets for blue-collar workers. The manual provides useful spending advice intended to help people on their path to financial success.
1. Accept accounting:
Any successful benefits plan depends on mastering the art of accounting.
Make a thorough funds that takes into account all income and expenses. Determine your investing, look for places where you might cut back, and set aside some of your income for savings. The foundation for wealth accumulation is laid by this methodical method.
2. Automate discounts for considerations of continuity
Low- or blue-collar staff frequently experience erratic revenue streams. Consistency is ensured by automated savings through automatic exchanges or direct deposits. Create a separate savings accounts and specify how much of your money will be immediately transferred. This “pay yourself first” culture aids in creating a financial cushion over period.
3. Managing Loan Strategically
For the purpose of generating money, debt must be addressed. Prioritize high-interest debt and create a methodical payment strategy. You can open up more money for benefits by reducing interest payments. Your journey to financial freedom is accelerated by this tactical approach to debt management.
4. Investigate company benefits
Some blue-collar jobs come with benefits that are sponsored by the company. Utilize these chances to the fullest extent possible, such as employee investment programs, matching contributions, and retirement plans. These advantages can drastically increase your efforts to build wealth and add value to your personal benefits.
5. Invest for the long term
Understanding the stock market’s potential advantages is essential, even though it may seem far away to some blue-collar employees. Investigate straightforward purchase alternatives and think about speaking with a financial advisor. Over time, creating a developed, long-term investment portfolio can result in significant wealth.
6. ongoing education and competence development
A personal expense is a commitment to your financial future. Within your economy, look for chances to advance your skills and learn new things. Gaining new skills does increase your income potential and, as a result, your ability to save money, opening doors to higher-paying opportunities.
7. Emergency account as a safety net for benefits
Establish a strong crisis fund to deal with unexpected financial difficulties. Aim for lifestyle costs of at least three to six months. This safety online gives you peace of mind and stops unforeseen costs from thwarting your long-term financial objectives.
8. Real Estate
Look into real estate options as a way to build success. Even though not everyone can afford to buy a home right away, knowledge of the real estate industry can help you make better investment choices in the future. As part of a diverse wealth-building method, take into account options like housing, real property crowdfunding, or rental properties.
9. Supplemental revenue
Investigate area businesses that complement your skills and interests in addition to your main job. This might entail starting a small business, consulting, or telecommuting. Your journey to wealth-building will be sped up by the additional income from these activities, which can be immediately channeled into your savings.
How to save money is a private decision that evolves over time depending on the situation.
It may present you with choices in the future and be both difficult and enjoyable. Even though development is slower, the secret is paying off debt, building a strong emergency fund, and laying the foundation for retirement. You’ll have more time to prepare for history’s unforeseen phases that way.