Expatriates in the UAE have a lot to think about financially, so the team at Holborn Assets have compiled a list of 7 financial mistakes to avoid in order to make your 2016 your best yet financially:
1. Clarify The Jargon! – There are no silly questions when it comes to understanding your finances. Do not let politeness or embarrassment get in the way of asking for explanations of financial terms from your advisor or bank.
2. Unregulated Advice – Similar to unlicensed doctors offering you a diagnosis, there are many financial consultants who do not qualify to give advice. Don’t use a financial provider without any background research or homework and always ask to see proof of certifications.
3. Signing Without Reading – One of the most common financial mistakes cited by financial advisors is signing documents without reading through such as tax papers, mortgage documents, lease agreements etc.
4. No Life Cover – It is important to review your insurance policies – life cover, critical illness, life threatening accident and financial protection for spouse/children.
5. Zero Savings – Living without a budget and failing to save for major financial events may drain you financially and emotionally. Milestone events such a child’s education, purchasing a house, or spending for a lavish wedding requires a sizeable pot of money.
6. Not Factoring Exchange Rates – Currency fluctuations are an obvious factor affecting the financial state of expatriates. Look in to the fees imposed and losses encountered with regular withdrawals for any fixed payments back at home – utility bills, rent, mortgage payments etc.
7. Neglecting Pensions & National Insurance – Many fail to research and do not contribute to their onshore pension, and do not set up a suitable alternative scheme. If you are intending to return to the UK later in life, and wish to live off a state pension, it is wise to maintain National Insurance (NI) contributions.
Educate yourself and take control of your own financial future and ensure to avoid these common expat mistakes. Speak to a member of our team of professional financial advisors to help organize your finances today!