How to create a personal budget and manage your finances?
Creating a budget is the first, and perhaps most essential step towards achieving your financial goals. A comprehensive budget tracker or spreadsheet – actively monitored and regularly updated - can assist with healthy financial planning by helping you avoid overspending and get you closer to achieving financial goals.
Maintaining a budget is a life-long (and rewarding) habit. Encourage members of your household to support you in keeping track of expenses and working together towards financial goals. One step at a time, every single day and you will master the art of a healthy financial lifestyle.
Here are six simple points to keep in mind while creating a budget.
Decide on the most convenient method for your lifestyle and habits. Many apps can be connected directly to your bank accounts and are equipped with handy tools to automatically categorize spend and provide real time alerts on overspending. If other family members will be regularly adding in household spend, you may want to consider a shared spreadsheet. Whatever the budgeting tool, set yourself up for success by deciding based on what you will be most comfortable using every single day.
Determine your monthly income, as an individual or household. While there is currently no personal income tax in the UAE, examine all sources of income, including income from part-time jobs or hobbies. Ideally, discretionary income such as an annual bonus or performance-linked cash incentives should be accounted for separately.
Begin by listing all expenses, starting with fixed expenditure such as rent or a mortgage if you have one. In addition to big ticket items such as a car loan, if applicable, consider all recurring expenses including telecommunications and electricity bills. If you have house help, add in monthly salary and visa fees. It is also advisable to factor in large annual expenses such as insurance premiums, and school fees by pro-rating over the 12-month period. Next, tackle variable expenses such a petrol, credit card bills, groceries and dining out. Don’t forget smaller ticket items such as your monthly car cleaning fee or laundry bill – every bit adds up!
What factors affects my credit score negatively?
Missed payments, bounced cheques, having too many credit cards and loans, using your entire credit limit are all factors that will effect your score.
Safety Guidelines for Secure Money Transfers
- Always use licensed payment service providers and avoid using unauthorized persons or entities (e.g. Hawala companies) for transferring funds.
- Understand the fees and exchange rates to minimize costs.
- For international transfers, correspondent banking charges may apply, therefore in the Funds transfer application form, always specify if the charges will be borne by remitter or beneficiary
- Verify recipient details to avoid mistakes, delays or fraudulent payments.
- To avoid delay in payment processing, always provide full details of the beneficiary and purpose of the transfer
- The actual time to process the payment may differ from estimates due to increased scrutiny of transactions by the correspondent or the beneficiary bank.
- Be aware of transfer limits and regulations in different countries.
Safety Guidelines for Mobile App:
Understand the critical importance of securing your mobile banking accounts to prevent unauthorized access and financial fraud. Your vigilance contributes to a secure banking experience. Example: Regularly monitor your account activity and report any suspicious transactions promptly to the bank. Recognizing the significance of security helps us work together to safeguard your financial well-being.
Create a Strong and Unique Password: Learn how to create a robust password for your mobile banking application incorporating a combination of letters, numbers, and special characters. A strong password is your first line of defense against unauthorized access. Avoid easily guessable information like birthdays or common words. Additionally, refrain from using IDs similar to the user ID or personal/family names.
Download Official bank Application and Keep Them Updated: Understand the importance of downloading the official mobile banking application from a trusted source and keeping it updated. Regular updates ensure you receive the latest security patches, strengthening your defense against potential vulnerabilities.
Essential Guidelines to Safeguard Your Identity Against Theft:
Safeguard Your Personal Data: Handle sensitive information like identification numbers, passwords, and financial details with care. Never share such data via email or phone unless you´re certain of the request´s legitimacy. Additionally, securely dispose any physical documents containing personal information, such as outdated bills and financial statements.
Beware of Social Engineering: Exercise caution when you encounter unexpected emails, messages, or calls requesting personal information. Authentic organizations never request sensitive details such as your Card details, One-time password (OTP), Card Verification Value (CVV) etc. through these channels. Always verify the source before divulging any information.
Strengthen Device Security: Bolster your online security by using strong passwords and enabling two-factor authentication for your digital accounts. Regularly update your operating systems, antivirus software, and applications to guard against potential threats.
Protect Your Social Media Profile: Limit the personal information you share on social media platforms. Cybercriminals can exploit this data for potential identity theft. Following examples for your information
- Theft/ unauthorized use of information
- Creating false customer records
- Unauthorized system modifications
- Virus infection
- Corruption of data
- Unauthorized/improper system access/modification
Regularly Monitor Your Finances: Keep a close eye on your bank accounts and credit card statements for any unauthorized transactions. Routinely check your credit reports for unusual activity and swiftly report any errors to avoid potential identity theft.
By staying well-informed and vigilant, you can effectively guard against identity theft.
Sanadak
The Central Bank of the UAE has established Sanadak, an independent Ombudsman Unit. Sanadak is designed to assist consumers, like yourself, in resolving any complaints with Licensed Financial Institutions and Insurance Companies that could not be settled through complaint resolution processes with the bank.
What is Sanadak?
Sanadak serves as a neutral and independent entity dedicated to resolving financial and insurance disputes fairly and impartially. If you have an unresolved complaint related to financial services or insurance that has not been satisfactorily addressed bythe bank, Sanadak offers you a new avenue for resolution.
How can Sanadak help you?
Sanadak will review and resolve complaints in an impartial manner, ensuring fairness to all parties involved. This initiative reflects our ongoing commitment to transparency, fairness, and customer satisfaction in the financial services industry.
What should you do?
If you have an unresolved complaint with the bank, we encourage you to first contact our customer service team at 800 55000. if your issue remains unresolved, you may approach Sandak to assist you.
How to contact Sanadak?
Consumers are advised to contact the Sanadak unit directly or visit their official website.
Office location
Emirates Institute of Finance building, Ground Floor. Abu Dhabi, UAE.
Contact centre number
800-726 2325 (SANADAK)
Website address
https://www.sanadak.gov.ae
