Frugal Expat

An expat's journey in Abu Dhabi, United Arab Emirates

Archive for the category “Finances”

12 Apr 2012

Overhaul

My life is going through an overhaul right now and in a way I am proud of it (I’ll tell you the reason later!). Actually the process is just initiating and the result is still to be seen and felt.

Work
I am one of those who keep their jobs for years for the sake of paycheck. Instead I endure the misery of working in the corporate world as I trade off my happiness, time, passion and health. Few more days from now, I will eventually get rid of the job that I detest for four years and five months.

Not only that, I will be office base worker soon. I am expecting a period of boredom on my first few months because for the last two year, I am always on the go – driving on the road, visiting clients in their respective offices, having lunch or dinner with guests or chatting on the phone to sort out issues or to extend assistance.

Soon, I will have a very minimal contact with clients, less time on the road and in my car, no work related phone calls which are disturbing on weekends and no more late night work oriented social functions.

Clothing
I am not yet sure though but I will probably be wearing smart casual clothes in my office because that’s what there staffs were wearing during my interview and it was a weekday. No more high powered business suits and high heels.

New Home Sweet Home
Hubby and I moved to a new flat. We just finished shifting last night, not an easy one but glad it was over. We realized yesterday that we really had a lot of personal effects which need to be trimmed down (and we should be ruthless in doing that!). Actually, we already downsized but I think it was not enough.

I believe that we should only stay in job that makes us happy. Why? Personally in my current job I come to office at around 7.45am and do not leave before 9pm and twice a week I have to stay until 10-11 in the evening. Imagine, I am not happy with my current role and I am spending 60% of my time at work. It implies during that 60% of my time I am not happy too.

I mentioned in the beginning that somehow I am proud of it. You know why? It took me so long to heap enough courage to take this decision because I was afraid to explore the world of unknown instead I chose to live in misery in my comfort zone.

Posted by Frugal Xpat in Accommodation, Employment, Finances, Life in Abu Dhabi | Leave a Comment
04 Apr 2012

Side Business

I have really been very busy for the last few weeks doing all the errands. Also, I become very determined of pursuing my side business thus I go home late every night.

Sometimes when I am tired, discouragement starts to creep in. Then I have to remind myself again, the reason I am doing this side business. I want to increase my cash flow and eventually establish my own business. I see this as my passport to final exit from the corporate world and in return will allow me to have flexible time to be with my son.

This is the motivation that propels me to work extra hours every week hoping that my hard work and sacrifices will eventually pay off.  

I always remind myself that whatever I want to achieve in life, I need to work for it. Nothing comes free. You reap what you sow.

 

Posted by Frugal Xpat in Finances, Thoughts and tagged | Leave a Comment
16 Mar 2012

Why Should I Prepare my Last Will & Testament?

My brother and I are on a mission to prepare our respective last will and testament once we have the opportunity to go home in the Philippines this year. It is one of our priorities.

Few years back, the idea of last will and testament is really farfetched. In our culture such thing is only for the affluent society but when I started attending financial literacy this year I learned its importance especially for individuals who have dependents.

Honestly, I do not have many assets but recently I started investing small amounts in mutual funds and stocks. Really, the amount I am investing is very minimal because of my current financial obligations. I am still trying various means to increase my cash flow to be able to invest more.

Anyway, I learned that in investment there are no beneficiaries unlike with insurances. Of course, I do not want my hard earned money (even it is minimal) to go to the government if ever I will die. Although it can be returned to your family, it will be subject first to court proceedings which for sure will take time.

My long term goal is to invest for my child’s college education and for our (hubby & I) retirement. If ever something happens to me, that goal should serve its purpose. Therefore, I have to ensure that it is written in black and white for security purpose.

Have you experienced preparing last will and testament? Has it been useful to you and your family? Feel free to share about it..

Posted by Frugal Xpat in Family, Finances and tagged | Leave a Comment
08 Mar 2012
2 Comments

Freedom to Fire Your Boss (When?)

I was reading a newsletter “The Hidden Cost of Having a Job” yesterday from one of the financial blogs that I subscribe.  It was not only insightful but thought-provoking too. I ended up sulking and asking myself. 

When will I have the freedom to fire my boss?
When will I be financial independent so I can go home for good and spend quality time with my little son and aging Mum?
When will I stop living at the mercy of my employer?

Yesterday my Mum, who was taking care of my six-month old son back home, was sharing how eager my son was with his first consumption of solid food. It was only one of the milestones that I am missing as my son is growing and learning all the “firsts” in his life.

All I could do was envisaged the words (every word) that my Mum shared about his first solid meal. I attentively listen to every word that comes out from my Mum or Sister as they account my son’s progress. I imagined the way he tasted his first soup. I had a sleepless night thinking how my son’s first airplane trip was.

It is sad and sometimes unknowingly depression creeps in.

Oftentimes to pacify emotional and psychological torture I am going through because of being away from my little boy, I try to look at the situation on a brighter side.

I am drawing strength and anchoring my motivation from my not-so-favorable-situation to get out from the corporate world and to thrive as entrepreneur/investor. Honestly, I don’t dream a fancy car and house, a functional house with high speed internet will do. A car in good condition will be a bonus.

The answer to all of my questions above boils down to one thing – financial security – and I know that it is only a matter of time that I will be financial independent. It may sound too optimistic but it helps me to get going.

Posted by Frugal Xpat in Family, Finances, Life in Abu Dhabi and tagged , ,
03 Mar 2012
4 Comments

A One Night Event, A Nightmare of Expenses

It is quite odd but I abhor social functions related to my job. Actually, it is better for me to spend my time with my friends and family than flashing my smile and cordiality to strangers.

Anyway, I would say that I have been successful in escaping these social events but last week I decided to attend. It would be my last event because I resigned already.

It was a formal event and we were required to dress up. Thus I was compelled to buy a black cocktail dress. In addition to that, I had to spend for the accessories and to the beauty saloon.

Honestly, I was really stressed with that event and I detested it more because I shelled out a good amount of money. I could have added that amount to my investment.

Indeed it was a nightmare of expenses for a one night event.

Posted by Frugal Xpat in Finances, Frugal Tips and tagged ,
17 Feb 2012

Things to Focus in 2012

Photo Credit: www.clker.com

 

With my decision to leave my current job, I am optimistic to land a job that does not require me to work longer hours at the same time an uninterrupted weekends. You see, I enjoy tremendously my two days off but oftentimes I slot in few minutes of office work like checking and replying to important emails. Also, there are the inevitable phone calls from the clients and the company either requesting for some assistance or issues that need to be resolved.

Hopefully with my new job, I will be freed from this and I look forward to having more time honing my writing skills and do my side business which I aim to be my passive source of income soon. Let me know if you are interested. And most importantly, spending quality time with my hubby.

My brother has been urging me to pay attention and consider seriously my writing business. I used to do it for fun. It is more of a hobby and the earnings that come to it is more of a bonus only. This time, I want to follow my brother’s advice.

I am keen on learning the ins and outs of freelance writing and the potential business opportunities that come to it. I am willing to start the learning process all over again. This is one aspect that I want to focus and invest my time this year.

Secondly, I targeted to thrive in my side business. I just joined this company last month and so far I am still on the process of learning the business. I know that it takes a lot of hard work and a long stretch of perseverance to succeed in this field. I am working on it!

I will focus only on these two things this year..

Posted by Frugal Xpat in Employment, Finances, freelance writing, Life in Abu Dhabi | Leave a Comment
12 Feb 2012
1 Comment

The Cost of Procrastination: A Hefty Fine!

Emirates ID is mandatory to all residents (expatriate and nationals) here in UAE. The ID has an electronic chip and it stores information such as name, date of birth, gender, marital status, ID number, fingerprint data, etc.

Its validity is coterminous with our residence or employment visa. I renewed my visa last March 2011 and ideally I should renew my Emirates ID too that time. The initial process of our Emirates ID was quite a nightmare because there were long queues. Because of what I experienced, I was just too lazy to process the renewal.

Then last December my colleague notified me that starting 2012 there will be fines for late renewals or applications. In end of January I renewed my Emirates ID. I was quite confident because the fines for Abu Dhabiresidents will start only on 1st of April.

Actually I was amazed because the processing now is fast and efficient. It took me only 15-20 minutes.

Anyway, after 2 days I received a sms advising me to visit again the Infinity Services, the agency that processes the renewal and applications of Emirates ID inAbu   Dhabi. Then I was informed that I had to pay the fine of AED 580 because of late renewal.

I came to know that I was fined for AED 20 per day since 1st January because I am holding a government visa.

Really, I felt bad for paying such a hefty fine but I had no choice.

Lesson learned – avoid procrastination!

Posted by Frugal Xpat in Finances, Frugal Tips, Life in Abu Dhabi and tagged , ,
02 Feb 2012

Western Union vs Bank Transfer Remittances

Long queues are always expected every end or beginning of the month in money exchange centers here in UAE because we, working expatriates specially Asians, are sending our remittances back home for our family and love ones.

Last week I sent remittances too, one for my family and the other for my hubby’s parents. I have never been really so keen on sending remittances through Western Union because its fee is expensive compared to the bank transfer.

Of course, I understand that with Western Unionwe are paying the speed of the transaction. It’s an instant transfer and your family back home can immediately collect the remittances five minutes after you send it. While the banks, it generally takes 24-48 working days to credit the transfer in the bank account.

Another plus factor withWestern Unionis the accessibility. You can collect the remittances back home almost anywhere. There are so many shops and stores affiliated withWestern Union. Unlike with banks, remittances can be withdrawn only through the ATMs or over the counters.

Western Unionis ideal for urgent situations where money is needed immediately. Otherwise, I still opt for the regular bank transfers because the fee is only AED 15 whileWestern Unionis AED 35.

We always send our remittances to my parent’s hubby through Western Union but l really never realized the big difference until last week. After completing my transactions in the money exchange center, I took the receipts and sat in my car. I was wondering why it seemed I paid more for my hubby’s remittance than for my family.

So, I was scrutinizing the details of each receipt and eureka! I found the answer. The exchange rate inWestern Unionreceipt was only AED 11.48 while in the bank transfer was AED 11.65.

I got out from the car and verified this to the teller in the money exchange center. And I heard the confirmation.

When sending money through Western Union, the exchange rate is always lower than the current one while sending through bank transfer, whatever is the prevailing exchange rate (during the time you send the money) will apply.

So think again when usingWestern Unionfor your remittances!

Posted by Frugal Xpat in Finances, Frugal Tips, Life in Abu Dhabi | Leave a Comment
27 Jan 2012

A Week of Hiatus

I have not posted for almost a week now because I am actually preoccupied with my new business. I am still at the start up phase. Well, it is not really a phenomenal one but I am keen on doing it.

I believe in our company’s mission which is to educate people and to help them secure their retirement and family security.

I am fromPhilippineswhere we thought that the only option to have a better life is to work abroad while leaving behind our love ones. Unfortunately, most of us are not financially literate. We are always confused between assets and liabilities.

So what happens, we put our hard earned money into investments which we think are assets but actually liability in real sense. More so, our generosity to our families is endless.

Hence it is quite a common scenario that Filipinos who work abroad ends up with limited funds for their old age. The sad part, these limited funds usually end up in hospital bills and medication.

Anyway, I will post more about my business at the later stage. It is for those who are keen on the following:-

  • Education about personal finance
  • Wants to increase their cash flow or have an extra income
  • Learn about better investment options
  • Keen to secure their finances for their future
Posted by Frugal Xpat in Extra Income, Finances, freelance writing, Investments | Leave a Comment
19 Jan 2012

Thoughts About Retirement and Investments

I never had a serious thought about retirement until I spent three months maternity leave back home. My Mum just retired last year from her teaching job for more than 30 years. Though a bit fearful of the fact that she is no longer receiving monthly salary, the thought of her monthly pension somehow pacifies her but she will not receive it until five years from now.

It made me think.. really..  My Mum is lucky that she has a secured pension from her teaching job. What about me? If I will decide to go home to the Philippines, I will be jobless because I am considered already over age for any available jobs back home.

Therefore, I will rely only on my savings and hopefully investments to support me and my family. It is quite a scary thought, right? Savings I think no matter how big the amount  will eventually diminish in the long run if you do not have any other source of income.

Investments on the other hand can be risky especially if you opt for business. The return of investment is not 101% guaranteed.

Because of this realization, I started to explore the opportunities of securing our retirement and establishing potential source of income once my hubby and I decided to go home for good in the Philippines. I am quite cautious in any form of investments because it is our hard earned money. At the same time, I want to have saving options with higher yield.

So far, I am paying faithfully my Social Security System (SSS) monthly contributions. I really do not know how much to expect from it but it is better than nothing, right?

Also, my brother and I found very helpful information in Bo. Sachez’s The Truly Rich Club. We have been members for sometime now and it is really enlightening. We are not that financially literate but with the guidance and help of Bo. Sanchez, we started to invest in stock market. If you are a beginner in investments, then this is a good way to start actually.  If you want to know more about the Truly Rich Club, click it here.

You will get also a copy of his ebook called “My Maid Invests In The Stock Market… And Why You Should Too”.
Posted by Frugal Xpat in Family, Finances, Investments, Life in Abu Dhabi | Leave a Comment

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