00:00So, at an editorial meeting, I pitched the idea that it would be interesting to document
00:14one of us living on an extreme budget, say, spending an entire month on just 1,500 dirhams.
00:22My editors decided to take it up a notch.
00:25They said, why not have an entire family do that?
00:29That was the start of my extreme budget challenge.
00:32Let's see how I fared.
00:33The first thing we did was analyze our expenses and look at the things we had no control over.
00:40Landline, mobile phone bills, internet bills, necessities like my baby's diapers, petrol
00:46costs or even medicines that we might need.
00:51And then there were things that you could reduce, but it would mean taking out a big
00:55chunk of your time each day.
00:57You could avoid salik or driving altogether and take public transport instead.
01:02But that means a longer commute every day to work.
01:06Is it worth it?
01:07I preferred paying more and spending that extra time with my daughter instead.
01:14And then there was a massive chunk of my expenses that was completely reducible, namely eating
01:20out.
01:21Yes, I eat out a lot.
01:23And the extreme budget challenge forced me to meal plan.
01:27We planned the meals for the week and when we did eat out, we set a very low budget.
01:33If you're a big family and want to cut monthly or weekly costs, a visit to your local fruit
01:38and vegetable market would be a good idea.
01:41For a family of two adults and an infant, shopping every week for fresh fruits and vegetables
01:46from our neighborhood hypermarket made more sense.
01:50So with the biggest chunk of my controllable expenses addressed, these are some of the
01:55other tips that I followed during the month.
01:59Number one, reassess your possessions.
02:03You'll be surprised with the amount of things you have but never use.
02:07Check what you have in your refrigerator, in your kitchen cupboards or your wardrobe.
02:11How often do you end up buying more clothes while many are left unused?
02:16The extreme budget challenge meant that unnecessary shopping trips came to a grinding halt and
02:21we as a family rediscovered what we already owned and started using them much more.
02:29Number two, small changes add up.
02:32If you have a tendency to go to the office canteen for evening tea or coffee, cut that
02:37out.
02:38You'll be going for one coffee but might end up picking up a lot more like biscuits or
02:42chips or other snacks.
02:44I stocked up for the entire month on chocolates, biscuits and healthy snacks and that helped
02:50me reduce my budget quite a bit.
02:53Breakfast was another game changer for me.
02:55I'm often dashing out of my house and rarely get time to eat breakfast at home.
03:00On the way to work however, I found a local cafeteria.
03:03You'll be surprised at how much variety you can get for an excellent price at these corner
03:09shops.
03:10My go-to breakfast?
03:12One omelette roll and two servings of kadak chai for a grand total of five dirhams.
03:17Yes, you heard that right.
03:22Number three, look for deals online.
03:25Check out the many online stores for bargains.
03:27Personally, I always buy diapers and baby wipes in bulk and it's cheap and convenient.
03:36Number four, the freebies.
03:39A night out with family and friends does not have to cost you a fortune.
03:43There are several options that cost you nothing.
03:46An evening at the beach, an early morning park visit or simply visiting the latest attraction
03:51in your city.
03:52All of this can be done at no extra cost.
03:56Just plan in advance to make sure you don't spend unnecessarily.
04:00Make sandwiches before a long drive.
04:02If you're visiting a retail area, plan that trip after dinner.
04:06A grumbling stomach often forces the brain to make silly decisions.
04:10So these were some ways in which I cut down costs.
04:14Now for the big reveal.
04:15How much did I really spend through the month?
04:182,800 dirhams.
04:20Yes, that is way off target, but for me, it was a great way to realize that I didn't
04:25need half the things I was wasting money on.
04:28But during the experiment, I had another realization.
04:32This was just a fun experiment for me, but there are several UAE residents who live on
04:36a salary of 1,500 or even less.
04:40How do they manage?
04:41Are they able to save any money at all?
04:44While you might think, no way, I met a man who trains people to save money, whether they
04:50earn dirhams 800 or dirhams 50,000.
04:54Let's find out what he has to say.
04:56Unless you decide yourself, nobody is going to help you to save money, to invest money.
05:03So first you decide yourself to have a comfortable life back home.
05:08I must save money now.
05:13I must invest that saving for the future.
05:18After spending, you cannot save.
05:20So if you decide to save a particular amount, keep that amount aside and leave with the
05:30balance amount.
05:31You always give a formula, 30% of the income we must keep for the future, 30% of the income
05:43we have to spend for our current life, 30% we have to keep to build a house, to educate
05:54our children and all.
05:56We have a 10% balance, out of the 5% for entertainment, 5% for a small insurance.
06:05Each individual has to control the expenditure within that.
06:12That is a culture we have to develop within us.
06:17All the segment of the people, all the income category of the people, they are doing it
06:21perfectly.
06:22There you have it.
06:24Like Mr. Shamsuddin said, no matter how much you earn, there is always room to save.
06:29Why don't you try the Extreme Budget Challenge and tell us what you learnt.
06:34You can comment in the section below or write to us at readers at gulfnews.com.
06:40And always log on to gulfnews.com for more great tips on how to live better in the UAE.
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