How much should your SALARY be in the UAE?

Car petrol prices have been deregulated; real estate prices are higher than they were a few years ago; and discussions are underway on whether or not VAT should be rolled out within the next few years.


Sometimes when I am sitting with some friends, the topic of economic inflation comes up and one can't help but wonder about how much should a person's monthly salary be so that all expenses can be covered and hopefully a little cushion remains so you can save it aside. Though it may be nice to be earning as much as you possibly can think of, the exact figure differs from one person to the next.

When applying to a job opportunity, some recruiters ask you about what is your expected monthly income. A mistake many job seekers do is respond by coming up with an average figure they determine by interacting with people, whether friends or professionals within the same or different field. The answer, thus, isn't an accurate reflection on how much you actually need, but is in fact a biased response that is developed based on what you know of the market. Simply put, if everyone you know makes an average of say AED 10,000 a month, you will perceive that you should be making around that same figure irrespective of your own personal requirements.

Your monthly salary should at all times be a true representation of your needs. As needs differ from person to person, salary expectations should also differ from person to person. It's a simple equation. So how much do you really need? The answer to this depends on many factors as explained below. 

Look at the essentials
What you receive as a salary should cover (and hopefully exceed) all your monthly expenses. The most substantial expense a working person usually incurs is the housing expense. This is usually made up of the monthly rent of the property, along with gas, water and electricity expenses. When choosing a place for living, it is recommended to pick a location that is at most 20 minutes (driving time) away from where you work to avoid building up stress developed from longer driving time.

Owning a car is still a necessity in the UAE. Ask yourself, are you still paying its monthly instalments? How much money are you spending on its petrol? How much are you paying annually for the insurance? Translate all those to monthly costs and add it to your requirements.

Your monthly grocery shopping and telephone bills (including your home WiFi) are also part of your essentials. Are your children in kindergarten or school? Will they be any time soon? Factor those in too!

Once you have figured out the monthly costs of all the essentials, figure out how much you need for sustaining all your routines. This could include going to the gym, shopping for new clothes, or even travelling. Once you do, translate those to monthly costs and add them up.

Finally, once all expenses have been figured out, add a contingency percentage which in reality should represent your target savings. Different people have different thoughts on how much this figure should be, but it is usually recommended to factor in around 20%. 

Are you making enough?
Hopefully, after going through the above, the total number that you just calculated works out to be equal to or less than what you are currently making. If it is higher, you will either have to re-visit your expenses to figure out how you can reduce them, or start looking for a new opportunity that is within your career ambitions and also can sustain your financial requirements. 

To recap
What you make as a monthly income should be a true representation of your financial needs, rather than a perception of what you should be making based on your interaction with others. Figuring out how much this number should be is determined by adding up your monthly essential costs with your monthly equivalent routines and topping the total with a 20% contingency that represents your savings. The total, therefore, should be equal to or less than what you are currently making, otherwise you'll need to either review your monthly expenses in order to reduce them, or start looking for a new opportunity that can sustain your requirements.

The essentials (in monthly equivalent):

• Housing rental 
• Water, gas and electricity bills
• Grocery
• Car instalment
• Car petrol cost
• Car insurance cost 
• Telephone bills (includes WiFi)
• Education
• Any other unavoidable cost

Personal routine (in monthly equivalent; subjective to each person)

• Gym
• Travel
• Shopping for new clothes
• Cinema
• Dining out
• Entertainment
• Books
• Any other cost developed from personal habits and preferences

Save on fuel cost by shopping online: Here's a look at some of the UAE's online stores

In my previous post, we have looked at online shopping as one of the means that can help in saving unnecessary fuel consumption through the elimination of unnecessary trips. Though it hasn't been adopted by many of the local retailers yet, there are a few websites that conveniently facilitate your shopping needs, all by a click of a button. Here is a quick look at some of them:

1. IKEA

The popular Swedish furniture store, IKEA, now gives you the opportunity to browse online through your favourite home items, and order them to be delivered right to your doorstep. Should your order be more than AED 2,500, the delivery should be free of charge. 

2. Namshi

Namshi positions itself as a leading online destination for fashion and footwear. Some of the very attractive benefits from using the website is that it offers cash on delivery, free delivery and free exchanges. The website also lists products according to various categories including those that are on sale.

3. Souq.com

As one of the UAE's largest e-commerce platforms, Souq.com boasts a listing of over 400,000 products online across various categories such as electronics, fashion, and perfumes. There are many value deals listed on the website which can lead up to substantial savings when compared to purchasing the same items from physical stores. Souq.com also offers cash on delivery, free returns and promises fast deliveries.

4. Edible Arrangements

Instead of sending flowers, you can now surprise your loved ones by sending them a fresh fruit bouquet courtesy of Edible Arrangements. Should you wish, every fruit in the bouquet you order can be dipped in chocolate if you wish. The website also makes it easy for you to select bouquets that are arranged and suggested according to various occasions. If you desire as well, you can order your selection online, and pick it up from any of their stores around the UAE.

5. Trolley.ae

Trolley.ae is a Dubai-based online grocery shopping store, with deliveries being complimentary if the total value of the order exceeds AED 100. One of the most appealing features of the website is allowing to build on future orders from previous orders rather than starting off from scratch. Trolley.ae also allows you to specify a delivery time any time between 10am and 8.30pm for their drivers to drop off your order at your doorstep.

This post isn't an endorsement of any of the above websites. It only intends to raise awareness about the various online shopping websites available in the UAE.

5 fuel consumption saving tips

Save on fuel consumption by following these 5 tips, and you'll have more cash to spend on something else:

1. Drive at steady speeds

Accelerating and breaking your car frequently consumes more fuel than driving at constant speed. From personal experience, I noticed that driving in the middle lane is usually more steady compared to driving on the left lane mainly because of tailgaters. In the case of dealing with rush hour, it's more economical to try to get up and arrive to work earlier than being stuck in traffic. If you manage to do so, try to speak to your manager to allow you to leave earlier so you can perhaps beat the traffic home. 

2. Clear out the trunk

Many of us tend to treat the trunk of our cars as our secondary storage unit; but did you know, that your car will consume more fuel to carry around this extra weight? 

3. Turn down the air conditioning

Ok, it is scorching hot during the summer and our reflex is to max out the AC as soon as we get into the car; but after a while, the temperature inside your vehicle does cool down, and your body will adjust to the heat, so choose to turn down the AC a few notches once this happens and save up on fuel usage. During the cooler weather, turn off the AC all together and crank the window open just a little to enjoy longer driving distances.

4.  Combine your errands in one trip

Taking the car out for a drive after it has been parked for a few hours will require more fuel consumption during the first 10 kms as the engine has gone cold and needs more energy to heat up. Rather than planning to purchase your grocery shopping, and visiting the bank on separate days, try to combine those errands (and others) on the same day and such that the destinations are within close proximity to one another as much as possible.

5. Eliminate unnecessary trips by going online

Many utilities providers such as Etisalat, du, DEWA, SEWA, etc offer you the service of settling your bills online, yet still many prefer to physically go the service center and queue up to settle the bills. Also, online shopping hasn't yet picked up like it has in the US and Europe due to preference to physically see the product before purchase. But with many websites now offering free return policy, it will definitely be more economical to buy your clothes online rather than making the trip to the mall. 

Will you consider relying on online shopping to save on fuel consumption?

Yes

No

Will deregulating fuel prices negate the effects of Salik?

As the UAE gets ready to implement its newest policy pertaining to deregulating fuel prices, one wonders, will this initiative negate the effects of Dubai's Salik that it currently has on drivers?

When Salik went into implementation in 2007, many drivers slowly changed their routes to avoid the toll gate charges. Back in those days, the cap per day was set to be AED 24, which translated to AED 720 Salik monthly charges. It was later decided to remove the daily cap to further motivate drivers to use the Salik route less frequently. Say what you want, it is in my opinion that Salik did achieve success in its implementation, and this is particularly evident when you compare driving times between using Al Ittihad Road and Sheikh Mohammed Bin Zayed Road though the latter consists of more lanes.

But effective August 1, commuters will have a confusing choice to make. Depending on fuel prices, drivers will certainly prefer to choose the routes with the shortest distance to save on petrol costs. In the case with many residents, this could mean bringing them back to drive more on the Salik route. The alternative routes, due to Salik, are usually more congested during peak hours which means that fuel consumption will also be higher due to this factor. Hence, the solution to reducing driving expenses may not lay between figuring out which route is more economical to drive on, but in committing to new unfamiliar habits such as car pooling and splitting the cost of the ride.

What do you think?

Do you think that the deregulation of fuel prices will impact driving choices already altered by Salik?

Yes

No

Deregulating UAE fuel prices, and how this will impact consumer behaviour

Starting from August 1, 2015, the UAE will be deregulating gasoline and diesel prices. Without the price being subsidized as it currently is, this initiative will result (at least for the short run) in car petrol prices to increase.

This move comes with a number of benefits and challenges. The advantage from an environmental perspective is that, in theory, residents will become more conscience about the number of trips they make, and will attempt to eliminate unnecessary ones which ultimately means an overall reduction in carbon monoxide emissions. Families may also become more encouraged to own less cars and be more encouraged to car pool with one another in order to save on the expected increase in costs. Car purchasing behaviour may also change in the sense that car buyers may start considering fuel efficiency as a factor at the time of purchase.

On the other hand, one of the challenges that will be faced with this policy will be on how ready the public transport system is to accommodate for commuters who would seriously consider using it as an alternative transportation mode. Though already advanced compared to the other emirates, Abu Dhabi and Dubai's local public transport system is still in the process of improving and expanding its network to become very efficient for its residents; but until those networks are completed, using them will remain efficient only to those who live within close proximity to the current network, and are heading to a place which is also near the network they are using.

Trans-emirates public transportation is still confined to taxis, and buses mainly; with the former implicating substantial charges, and the latter still consuming more time than driving your own car. Certainly, now and more than before, it would be a great move if works on a passenger rail network between the emirates is expedited, that once completed, is also connected to the local public transport systems such as the metro.

There is also the aspect of consumer behaviour. There will probably be those who will still prefer to pay more on fuel consumption rather than choosing to car pool, or using the public transport system in order to save on the costs. I fear also that those people will ignore fuel efficiency as a consideration factor when buying a car. All this to maintain social status in their perspective. 

Though surely one can continue arguing more benefits and challenges, the new policy adopted certainly is a sound one that reflects a strategy that would be implemented by developed economies. Fuel is a scarce resource, and its inefficient consumption will continue to adverse affects both the economy and the environment, we all know this. Money is also another limited resource, so rather than yielding to paying more, perhaps it is time for us to seriously consider becoming more conscience of our living expenses, and more responsible with our daily choices.

How will this policy affect you? Will you be considering using alternative transportation methods? IF so, which ones? Do you think people will switch to more fuel efficient cars? Please do share your feedback in the comments section.

Diaries of a fasting man: Tailgating is a driving culture

We've all been there, driving peacefully on the left lane, just a kilometer per hour under the speed limit and suddenly, the inside of our car lights up so bright that you think it is day time again when in fact, its just midnight. "Ok, ok" you think, "I'll move out of the lane but just when I get a chance to do so in between the stream of cars flying by me on the next lane" who seem not to regard your tight situation as the car behind you is now practically kissing your car's rear bumper.

And we've all been there, in a rush, driving as fast as we possibly dare to on the left lane trying to make it on time 20minutes late from when you were supposed to be there in the first place. And now there's this car that is driving 40kph below the 120kph speed limit without any concern with how much in a rush you are evidently in. As much as you might hate it, you briefly signal off your request for the car to clear the lane, and let you pass through. But this one, no, this one is stubborn and doesn't want to change lanes, even though all 6 of them to his right are clear. "Now it is a matter of principle", you think to yourself. "Why doesn't he change lanes when he is clearly driving well below the speed limit, and he can clearly see that I am in a hurry?". So you retaliate with the only way you know how and that is by getting as close as you can, to fire off your light beams so he understands that it is your right of way.

Dubai had recently installed radars around town that can detect if the distance between your car, and the car in front of you is 5m or less, and issue you with a 400 Dirhams fine should you be traveling at 80kph or more. The objective is to reduce, if not eliminate, tailgating in order to assure safety on the roads, and achieve less accidents.

Tailgating is surely an issue in Dubai, and I am certain that nobody will say that they like it happening to them. And yes, the deployment of those radars will surely get drivers to think twice now before pacing the rear of any car and flashing off the head lights so they clear the lane, but the challenge will remain in the space between radars. The real issue in hand, in my opinion, is not tailgating; but it is with the driving culture as an overall. For some reason, we tend to underestimate driving time thinking that a certain trip will take 15 minutes, when it probably needs more like 45 minutes with traffic, just like it did the last 10 times and so, we find ourselves reacting by stepping on the pedal.

In some of the countries I visited in Europe, I noticed that the left lane of a highway is usually kept clear. The reason for this is because as best as people try to manage their time, they are still subject to being late. Therefore, and as a courtesy, people who managed to be on the road on time will tend to keep the left lane clear so those who are in a rush can overtake without the need to hassle anyone else about it.

With highways in Dubai being at least 6-7 lanes in each direction, I think it is highly feasible to reserve the left lane for overtaking during off peak hours. This will likely result in more cars driving on the remaining lanes, which in theory, should slow them down given the anticipated traffic that should be generated by the same number of vehicles now driving on lesser number of lanes. This courteous practice, combined with better time management, will surely not only reduce traffic accidents, but also, lower people's overall stress levels generated by road rage. And guess what, you'll probably be on time as well! Wouldn't that be nice for a change?

Do we really need to have new driving rules, and a new fines system so that car drivers become more empathetic towards driving safer? We don't! Just start with yourself and decide that you'll become a better driver, and as you start feeling better because of your better driving etiquette, start encouraging your family and friends to do the same. Tailgating became a problem because one person started it, and everyone else followed practice. Maybe it's time for the solution to be achieved in the same way.

Happy Friday!

Diaries of a fasting man: #MyDSW

Hi everyone,

We are almost half way through the holy month, and one of the challenges I've been facing is staying physically active. Before Ramadan, my normal routine would consist of alternating days of jogging (4-5k) and high intensity cardio boot camp workouts. Given the hot season, I find it extremely challenging to continue my usual routine while fasting as it is based on being outdoors mostly. Thankfully, Dubai Sports World opened its doors just in time so fitness enthusiasts such as myself can take their workout indoors.

The Dubai Sports World is located at the Dubai World Trade Centre, with operating hours until 1am during Ramadan. The venue presents an excellent active environment that by itself is good motivation for anyone to start exercising. You'll be able to find a number of facilities for hire such as:

• 5 a-side and 7 a-side football pitches 
• Basketball courts
• Cricket pitch
• Tennis courts
• Rugby, and
• Parkour

For more information on hire rates, and how to book, check out www.dubaisportsworld.ae. As an advice, plan on booking in advance as all facilities have always been fully booked every time I've been to DSW.

There are other facilities that you can use which are completely free of charge. Those are:

• A fully equipped techno gym
• Badminton courts
• Table tennis, and
• Indoors jogging track (around 500m a lap)

Fitness First also conveniently offers the following complimentary group classes at the Techno Gym every day at 9.30pm (with the exception of Fridays):

• Sundays and Tuesdays: RPM
• Mondays: Bodypump
• Saturdays and Wednesdays: Zumba

As our overall consumption of food is decreasing during the holy month, I highly recommend that you take it up as an opportunity to start exercising and loose those extra kilos you've always wanted to get rid off. Follow up your workout with a high protein meal, and don't forget to stay well hydrated (at least 3L of water) and you won't even feel hungry nor thirsty the following day.