The Road to Freedom

Financial freedom, that is. Aside from needing a change and wanting to see the world, my main motivation for moving to the UAE was money. I was tired of working 12 hour days and still barely scraping by to pay rent, bills, and gas. I was exhausted and still broke. Moving to the UAE gave me a much larger income, almost double what I was making working 12 hour days in the States. You would think I would be rolling in cash right now. I have made some financial decisions here that some would think were not so smart, however I like to think of them as an investment. 

My first choice was to purchase a car instead of leasing. Even the crappiest of cars here cost about 2,000 AED ($550 USD) a month to lease. You are stuck driving around in a tiny piggy bank and will never see that money again. I figured if I stay here 3 years, leasing a car will cost me 72,000 AED ($19,600 USD). Whoa. Even if I only stay the two years I committed to, leasing would cost me 48,000 AED ($13,000 USD). When you leave, you hand the car back and get nothing in return. So, I decided to purchase my car. I got a used Cadillac Escalade for an amazing price from a wonderful Lebanese family. The wife was around 60 years old and only drove it to the store and back. It had very low miles and was in great condition. I paid 35,000 AED ($9,500 USD). Here is the only catch: The bank agreed to give me a 24-month loan, so I told the man I would buy the car. When I returned to the bank to actually do the paperwork, a different loan officer was working and he informed me that because I am a teacher they would not give me a 24-month loan, only a 10-month loan. The reason for this is a number of teachers, now known as “runners”, who come to the UAE, take out loans and send all the money home to pay off debt in their home countries, and then quit their jobs and run back home, never paying the bank back. Because of these “runners”, teachers have a lot of difficulty doing business here. Anyway, because I had already committed to the man to buy his car and knew that this would still eventually work out in my favor, I went ahead and took the 10-month loan. My payment came out to be 4,280 AED ($1,165 USD) per month. The silver lining: I have a friend who loves the Escalade and has committed (inshallah his word is true), to buy the Escalade whenever I decide to leave, for 35,000 AED. Yes, that’s the same price I paid for it. 

Another financial choice I made was to have my dog shipped here. It was an expensive process and I had to get a credit card in order to make it happen. Of course then I started charging some things I shouldn’t have, and bam, found myself with a credit card bill much higher than I intended. No, it wasn’t an awful amount, but yes, I needed to start paying it off so I could get rid of the card. I have been paying it down every month. 

I am happy to say, my last payment on my car will be July 27. I have also set the goal for myself to make my final payment on the credit card on August 2 (my first day back in the UAE after my visit to the States). This will make me debt-free on my 30^th birthday, which is August 9. 

I have set financial goals for the upcoming year. I do plan to do a little traveling as well as brunching and funning. My main goal is to save though. I will save a sum each month, that way whenever I do decide to return to the States I will not only be returning debt-free, but with a lump of cash. I also found out that when teachers fulfill their contract here and decide to go home, they are paid a “gratuity”, which is one month’s pay per year you complete. Meaning if I return after two years, I will get $8,000 USD when I leave, and if I stay three years, I will get around $12,000 USD. My ultimate goal when I return is to be able to have a paid-off car, and inshallah, a paid-off house (or at least a large down payment to reduce my mortgage). My vision is to set myself up for financial success for the rest of my life. Is this a lofty goal? Yes. Will I achieve my goal? I hope so. If I don’t, at least what I have done will be a step in the right direction!

Being broke has taught me more than just the importance of financial planning and budgeting. Do I always make the wisest decisions? No. Do I splurge from time to time? Yes. But during this time I have budgeted every dirham for every month. If I need a splurge, I put it in the budget and cut the fat from elsewhere. I never drop below, and never have surprises anymore. I stopped using my credit card and mostly deal in cash. Besides developing financially, being broke has actually helped me develop mentally, emotionally, and even physically. I learned to say “no” to invites. I learned to spend time at home alone, and actually learned to enjoy it. I spend time watching my favorite shows, doing research on the computer, and even reading. Believe it or not, I even started journaling.  I was unhappy with how I looked (Indian Butter Chicken and Il Forno Pizza caught up to me), and decided “Okay, I have no money, I can’t go out anywhere, I need to get my butt in the free gym and free pool at the apartment and do something about it”. I spend every day after school in the gym, and every morning there on the weekends. I am starting to like how my body looks, emotionally I am happier than I have been in ages, and I even met a friend in the gym who has a boat, which has given me another free activity that I really enjoy doing on the weekends. I know a lot of teachers here that go out every night, take trips out of town every weekend, and wine and dine like it’s their job. And good for them, every person should be able to do with their money what he or she chooses. I think I have a good balance here and would definitely prefer to take more money back to the States instead of spending it all here. 

I guess the point of this post is that through being here, I have become more insightful, more goal-oriented, and ultimately happier. I know that my blog is read by many teachers who are preparing to come here this summer to start their journey here in the Middle East. Many of the questions I get about living here are about money and finances, so I guess maybe sharing my experience might bring some insight to those looking ahead to their time here.