UAE Expat Alert: Secret revealed on how to be a millionaire in 7 years

For those of us not lucky enough to have receives a sizeable inheritance, we can still carve our own route to prosperity and become a millionaire.

It may seem elusive as you juggle the never-ending bills but it is definitely within reach if you follow some set rules.

The best part? It can be done in less than a decade.

With the right habits, which means increasing wealth and slashing debt, you can add to your coffers.

Expats have the potential to make themselves a million, whether it be in dirhams, dollars or pounds, in just seven years, according to expert advice from Guardian Wealth Management, a financial planning firm.

“One of the many things that lead people to choose an expatriate lifestyle is the potential to enhance their financial status. Seven years is the average amount of time an international worker stays in the Middle East and is plenty of time to convert hard-earned savings into potential millions,” says Hamzah Shalchi, regional manager of Guardian Wealth Management.

How to reach that millionaire mark

Experts at the wealth management company say the key is compound interest. Of course it isn’t a new or a novel idea – compound was described as the ‘eighth wonder of the world’ by none other than Albert Einstein.

The bright mind famously remarked: “Those who understand it, earn it; those who don’t, pay it.”

The experts here advocate Einstein’s philosophy – save for less time but earn more due to the build-up of interest. This is what they see a ‘serious potential money-earner for UAE expats if used correctly.’

“Far too many people leave at the end of their stay without taking advantage of the opportunities available to build a solid financial future. Compound interest is one of the biggest advantages of having a savings plan and is a smart way for expats to put money away whilst they are benefiting from a tax-free salary – then reaping the rewards later on in life,” states Hamzah.

The idea of allowing savings amounts to earn interest, which in turn earns interest, is the key to getting the most out of them, they recommend.

Doing the math

For instance, if a 40-year-old saver was to save Dh5,000 a month for 10 years at an interest rate of 5 per cent, s/he would have saved Dhs630,000 by the time they were 50 years-old.

However, if a 30-year-old saver was to save Dh5,000 a month for seven years at 5 per cent interest, but left the amount to mature at 6 per cent interest until the age of 50, s/he would have earnt Dh1,000,000. Therefore, it is clear to see the benefits of saving earlier but for less time using the power of compound interest.

Resisting temptations

Controlling the urge to spend is as important as putting your money to grow. Expats who are used to living a lavish life must curb the urge to splurge without giving a second thought.

Living in the UAE means drawing an expat salary; yet many of us fail to save. A previous research by Zurich International Life showed that the retirement aspirations of many residents in the country are under threat due to a lack of retirement planning.

That survey, conducted by YouGov, showed that 46 per cent of residents hope to retire before the age of 60 and 36 per cent expect to live in retirement between 10 and 20 years with another 39 per cent expecting to be retired for over 20 years.

But the desire to stop working earlier does not match with the financial planning that it requires.

 

Source:: Emirates 247

UAE Expat Alert: Secret revealed on how to be a millionaire in 7 years

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