Abu Dhabi Time
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
30th 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.
