Published on May 4, 2022
In the twenty-first century, women have defied all odds and made significant strides in practically every field. Unlike in the past, when women were only expected to manage their homes, today’s women have successfully transitioned from household management to company management. Women have made their mark in every field, including science, technology, healthcare, politics, sports, and defence.
Despite all of the progress that women have achieved in the twenty-first century, financial management in the UAE is still predominantly male-dominated. According to a poll conducted by a well-known financial firm in the UAE, just 42% of women are confident in their financial decisions and consider themselves financially self-sufficient.
The lack of confidence stems from the cultural framework since women have historically been less active in financial management in the UAE than males. Regardless of the cause, today’s women in Dubai are more autonomous and powerful than ever before, making it critical for them to handle their money as well. We’ve compiled a list of the most significant financial management recommendations for women in the UAE.
Financial management for women is a challenge
There are a variety of reasons why so many women experience difficulties to plan for the future financially. The following are the most important issues:
● Women are typically paid less than males.
● Women are more likely to leave their jobs or work part-time to care for their children.
● Men’s pension funds are often up to 50% greater than women’s (mainly due to being higher earners)
● Finance and investment are still regarded as men’s business in many circles.
● Females are more likely than males to be responsible for an older relative.
It’s concerning that, in this day and age, financial disparities between men and women still exist. Even though there are programmes in place in many businesses to address this, it remains a serious issue. It’s a particular issue for women approaching retirement age, who grew up at a time when gender pay disparities were considerably more pronounced..
Why is it so important for women in Dubai to plan their finances?
Everyone should manage their money, but there are certain circumstances that make it even more crucial for women to do so.
● Women have a higher chance of living longer than males. All women must guarantee that they can manage their finances on their own.
● As a woman, your husband is statistically more likely to earn more than you. You never know what can happen, whether you’re currently single or not, and financial independence is essential.
● If you don’t make your own money, you need to make plans for the future.
How can women plan their finances?
Financial planning in Dubai for women doesn’t have to be difficult, and there are several things you can do to assure you have a solid strategy in place. Whatever your salary or financial status, you should have the following in place:
● A retirement plan/pension of your own. If you’re self-employed, think about setting up a private pension. Don’t put your entire trust in one person.
● Build up your savings. Even if you can only save a modest amount of money each month, be sure you are doing so (ideally 20 percent of your income). Make sure this goes into your own personal savings account instead of a shared one.
● Never live off a partner’s debit cards. Always utilise a joint or your own account if you give full-time childcare or rely on a partner’s income. Also, make sure your family is protected by insurance in case one of you is unable to work.
● Make investments if you can. This may appear frightening, and many women are wary of this sort of financial preparation. Still, it’s worth investigating since, when done right, it may yield excellent results.
● Have access to your finances as a family whether you’re in a relationship or married. If you have any joint accounts, pension plans, or investments, be sure you have all of the relevant passwords and documents. You never know what the future holds. You may need to know about and have access to your financial condition.
● Don’t be afraid to ask for more money. Have the courage to prove your value if you start a new work or obtain a promotion. Instead of asking your employer what they’re willing to provide, go in with a high bracket and demonstrate that you’re not willing to be taken advantage of. “With my talents and expertise in X, I believe I could add a lot to this job,” for example. I believe that a beginning salary of between X and Y would be a good place to start. Is this in accordance with the position’s existing budget?”
When you’re the breadwinner, how do you plan?
Financial planning for women is still crucial, even if you have a larger wage as the family’s female member. You must safeguard your earnings and valuables. Here are a couple of things to consider:
● Before you marry, get a pre-nuptial agreement. This will help you to safeguard your assets and maintain control if the relationship becomes bad in the future.
● Take out insurance. If you become seriously ill, insurance ensures that your family is protected.
● Keep track of any significant cash gifts. This includes donations made purely from your earnings, such as down payments on a home.
● Keep a few items that you’ve paid for in your name. This might include things like your automobile.
● Make certain you have a personal savings account.
In a Nutshell
As a self-sufficient woman, it is critical to recognise your requirements and make slight adjustments to your tactics in order to adapt efficiently at every stage of life. Gradually, as one’s income rises, the move to protecting one’s future and developing a corpus should be made. Whether you’re single, married, widowed, divorced, or engaged, it’s always your obligation to protect your future without relying on spouses, dads, or others. Begin slowly by saving little sums of money and investing them wisely in the future, gradually increasing your investment pace for a happier and safer future.