Dubai is such a gorgeous city, isn’t it? The soaring skyscrapers, the mesmerizing architecture, the alluring desert, and the range of cultural experiences all make a persuasive argument for settling in the emirate. Life in Dubai, however, can get pricey.
The average monthly cost of living for single people is between AED 5,625 to AED 9,245; AED 10,432 to AED 15,970 for couples and AED 22,160 to AED 37,460 for families.
Dubai is in the top 17% of the world’s most expensive cities.
However, with a bit of budgeting and smart financial choices, you can live well in glittering and luxurious Dubai. Just follow these money-saving tips.
1. Get access to lifestyle discounts and promos.
In Dubai, you can see and do more for less. Lifestyle discount or saving apps like Entertainer Dubai allow you to save money while still enjoying all the posh things the city has to offer.
From gourmet dining and exceptional theme parks to opulent spa experiences and upscale hotel stays, lifestyle amenities can be affordable with The Entertainer for Dubai residents.
There’s also Entertainer Abu Dhabi for residents of the capital city. The app offers buy-one-get-one-free promotions from its over 1,600 merchants.
For instance, if you buy an appetiser at a bar, you get one free appetiser, allowing you to save money. All you have to do is download the app, register for an account, and choose your location-specific product.
2. Buy in bulk.
What items do you use most frequently? You’ll save more money grocery shopping if you buy in bulk.
When you buy household essentials, from toiletries to pantry items, you not only save precious dirhams. You also save on time and petrol costs. With fewer trips to the stores, you also avoid the temptation to buy items on impulse.
You’ll also be better prepared for emergencies with sufficient stock of household essentials.
3. Turn dining out into a special event.
In the expat-driven city of Dubai, the dining scene is anything but typical. You’ll find a wide variety of restaurants experimenting with innovative menus and delectable fusion cuisine (e.g., Middle Eastern and Japanese). It’s only natural to want to eat out when possible.
Instead of dining out every day or night, why not schedule these as culinary treats? Turn your restaurant reservations into a mini-event so you don’t end up ‘eating’ into your budget. Maybe arrange a special dinner every two or three weeks at a new restaurant or a favourite dining spot.
4. Stick to a monthly budget.
Saving money can only happen when you know how much you need to spend in a month. Create a monthly budget by listing your usual expenses: housing, groceries, healthcare, school, transportation, utilities, and the like.
You can use the 50/30/20 rule: 50% of your salary goes to expenses (e.g., rent or mortgage, grocery, utilities), 30% to personal expenses (e.g., spa trips, entertainment, hobbies) and 20% goes to debt and savings ( e.g., credit card payments, retirement fund, education fund). Once you set a budget, stick to it.
5. Start an emergency fund.
The AC breaks. The car breaks down. Someone in the family gets sick or loses their job. Life’s unplanned events are not only stressful but costly as well, especially when your budget has no room for unplanned expenses.
An emergency fund provides a buffer, saving you from a financial crisis. In general, your emergency fund should afford you three to six months’ worth of living expenses.
6. Build a savings plan.
As you’re watching how much you spend month in and month out, try to start a long-term savings plan.
Save up for retirement, for a relocation, or a much-needed family holiday. With a savings plan, you’re preparing for financial security or opting out of debt to pay for big-ticket expenses.
7. Consider renegotiating your rent.
Can you renegotiate your rent? You can if you’re about to renew your lease and haven’t signed a contract. Renegotiating lower rents is applicable when rents in your neighbourhood have decreased. If you and your landlord fail to come to an agreement, enquire with the Dubai Rental Disputes Centre about how to proceed.
When renegotiating your rent, make sure the rate allows you to spend only 30% of your income on this expense.
8. Manage utility costs.
Every Dubai household spends on electricity, gas, water, internet, and cooling and heating. How much do you spend on these utilities?
Because it gets quite hot in Dubai, you’re likely running your AC 24/7. The effects of which you’ll see on your bill. You can optimise its operation and remain comfortable indoors by applying the 1-degree hack.
When you reduce your thermostat setting by 1 degree, you save about 5% on energy bills. It may seem like a small percentage, but throughout the year, the savings will add up.
You can also use curtains and drapes to reduce heat retention. Maintain your AC so that it runs efficiently. Turn off lights that are not in use. Conserve water when possible. And just be mindful of your consumption to manage utility costs.
Dubai may be posh, but you can still live well without the usual high cost. Use money-saving apps, be smart about your spending, and save for future expenses.
