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Coping with Financial Crisis – An Expat Perspective

In todays turbulent times you never know when you will find yourself in the middle of a financial crisis or emergency as many overseas Expats will testify.

If you have an accident, fall ill or simply lose your job or suffer any crisis that threatens your family or income, you could suddenly find yourself in big trouble as debts begin to build up.

The UAE is no different from many overseas locations and can be a difficult place to have money troubles. Writing a cheque that bounces is still a criminal offence for expats so careful money management and planning is an essential part of every day life.

Everyone should have a financial cushion “just in case” things go wrong and an emergency strikes.

Coping with Financial CrisisThings can quickly spiral out of control so emergency provisions need to be set aside for these type of events.

At Guardian Wealth Management we recommend keeping ‘instant access’ to funds between three to six months salary just in case things go wrong.

There is however a balance needed between security and getting a return on your hard earned money.

There is no hard and fast rules on what is right and wrong and this is really down to understanding our clients and how comfortable they would be if these situations were to arise.

One thing is certain these funds need to be secured in a jurisdiction that is secure and tax efficient which is where Guardian Wealth Management can offer some practical advise on.

Equally a good way to protect your dependents is to buy a life insurance policy combined with another type of protection called critical illness cover.

This pays a cash lump sum if you were to suffer a serious illness such as cancer, heart attack or stroke.

The combined cover may be more affordable than you think.

In recent studies conducted by Souqalmal it was found that only 4 out of 10 UAE residents save less than 10% of their monthly income and half of those polled claimed they did not save anything at all.

Expats living and working in the UAE are fortunate to have access to a good health care system, but it can be expensive which means access to good private medical insurance is a must.

While all employers supply health cover in Abu Dhabi, Dubai is still preparing a law to make health insurance mandatory in the emirates although many expats already have it through their employer. “If you do have a company funded policy, you should check it carefully, to make sure it provides the right level of cover. Medicine is expensive in the UAE and major operations or treatment can be very costly” – Chris Ferguson Managing Director Guardian Life Management in the UAE.


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