Visiting an art gallery, such as Louvre Abu Dhabi, is a cost-effective way to while away your time. Getty Images)
Visiting an art gallery, such as Louvre Abu Dhabi, is a cost-effective way to while away your time. Getty Images)

How to live frugally in the UAE and still feel fulfilled



I could write a list of 20 frugal things you can do in the UAE. Those lists are certainly out there, letting you know all the cheap or free events happening near you.

There are a myriad of entertainment options to keep costs down from open mic sessions to poetry readings, beaches, improv comedy, libraries, movie deals, pot lucks with friends, people watching at the mall, enjoying art galleries, driving to the top of mountains, hiking in the desert ... I could go on but you know your interests better than I do.

You get the idea though; there are plenty of low-cost things to do if you get off your couch, grab a friend and go for it.  For me, however, a more interesting topic is how often we pay for expensive activities to entertain ourselves, and how easy it is to replace those with cheaper options. If we can become more content with our own company, can we lower our expenses and save money to reach our financial goals?

As a young child I wanted to play with my friends all the time and needed constant outside entertainment.  One day, my mum sat me down and said, 'Zach, if you learn to entertain yourself, you will be much happier, because people won’t always be around'.  So, I learned about the joys of reading and got lost in thousands of books.

I also spent hours building Lego houses and space ships, learning about my plastic dinosaurs and practicing an instrument. Over time I was able to to self-entertain - a skill has stuck with me to this day.  And this was all before the internet, social media, video games or the thousands of TV channels that we can now tune into.

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Read more:

The Happiest Teacher: 'The less you want, the richer you will become'

Don't be a slave to your finances, take control

'Happiest Teacher' blogs about saving money in Dubai

Finance guru Andrew Hallam’s new guide for expats wanting to become wealthy

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The internet has allowed us to be alone, but not alone, in a previously undreamed of manner.  I can now create a social group with the most specific interests and find others just like me. I can become immersed in an echo chamber of my own creation; socially isolated, but incredibly social.  For many, me included, this can make it far too easy to never leave my apartment and be permanently entertained from the comfy recesses of my couch. Add in food-ordering apps along with the gym and pool in my block and I could literally never leave my apartment.

This type of life also appeals to my frugal nature, because it's cheap to stay at home. I don't have to pay for a taxi, petrol or expensive restaurants. If I cook for myself or just have a friend over for dinner, I can cut costs further. There is great savings power in your apartment.

But then I worry that when I do emerge, I will be like Dracula - blinking, pale and hissing at the sun, unaccustomed to others and not properly socialised.  If I don’t go out, I will miss out on the many amazing things this country has to offer.  It’s about striking a balance: how many outside activities should I do versus how much I stay at home and still be social and healthy.

The answer for everyone is different.  For me, I need to do things outside my apartment or with others about four to five times a week. I am fine spending time by myself, in fact, the introvert part of me needs that to recharge from the often overwhelming nature of others. Ask yourself if you need to be entertained at all times, and if that entertainment involves going out?

There are two key principles at play here.  The first is the hedgehog principle; this states that most people like to be with others and get close to them, but then their "spikes" start hitting each other and they need to move away and have independent time. The spikes are the things about others that annoy us or drain our energy. Each person needs to know how much time they can spend with others before they need time to recharge. For me, it’s about four to six hours and then I need peace.

The second idea is the law of diminishing returns. This is a principle of economics that says the more we experience something, the less satisfying it is.  If you have a piece of chocolate cake, it’s great, but if you have chocolate cake every day for every meal, you’ll get sick of it quickly.  This applies to even the most exciting activities. If you’re a skydiving instructor, even that will lose its pizzazz over time. Our brains crave novelty.

The solution to these two principles seems to be to do new activities, but fairly infrequently so that the law of diminishing returns does not kick in. That way you can maximise the happiness from whatever it is you do. You also need to accept that it's OK to spend time by yourself or at home with your family.

There is no iron-clad rule as to how many times you should go out? You need to know yourself and experiment.  Try only doing stuff at home during the week and only going out on the weekends or try more free or cheap activities. You might find you like those more than the expensive options.

For those that have already mastered the balance between spending and having fun, the next step is to earn money from your hobbies. If you love photography, offer to shoot events for a company - this could lead to paid work further down the line. If you love music, start a band and practice until you can eventually secure gigs. There are tons of creative ways to monetise your life so that you get to do what you want and boost your wallet at the same time.

Dubai school teacher Zach Holz has won a huge following for his blog, The Happiest Teacher, which he launched in January to share his obsession with personal finance with others. Every fortnight he will be writing in The National about his journey towards financial independence and how anyone can ease themselves out of the habit of living pay cheque to pay cheque

Breast cancer in men: the facts

1) Breast cancer is men is rare but can develop rapidly. It usually occurs in those over the ages of 60, but can occasionally affect younger men.

2) Symptoms can include a lump, discharge, swollen glands or a rash. 

3) People with a history of cancer in the family can be more susceptible. 

4) Treatments include surgery and chemotherapy but early diagnosis is the key. 

5) Anyone concerned is urged to contact their doctor

 

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World Cup qualifier

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UAE 1 (Mabkhout 45 2')

Results

Final: Iran beat Spain 6-3.

Play-off 3rd: UAE beat Russia 2-1 (in extra time).

Play-off 5th: Japan beat Egypt 7-2.

Play-off 7th: Italy beat Mexico 3-2.

The specs

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Credit Score explained

What is a credit score?

In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.

Why is it important?

Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.

How is it calculated?

The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.

How can I improve my score?

By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.

How do I know if my score is low or high?

By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.

How much does it cost?

A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.

Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.