How to save money by living frugally in the UAE

Living a frugal lifestyle in the UAE can significantly impact your savings and financial stability. By making small, mindful changes each day, you can save a considerable amount of money over time. Here’s how you can adopt a frugal lifestyle and the potential savings from these changes.

Housing

• Opt for shared accommodation: Sharing an apartment or villa can drastically reduce your rent and utility costs. Websites like Dubizzle and Bayut can help you find shared accommodations.
• Consider affordable areas: Look for housing in more affordable neighbourhoods. Areas like Al Nahda, Deira, and International City often have lower rents.
• Share your current apartment: If you already have an apartment, consider getting a roommate to split the costs.

‍Potential savings:

• The average rent for a 1-bedroom apartment in a central area of Dubai can be around AED 6,000 to AED 8,000 per month. By sharing an apartment, you could reduce this cost to AED 3,000 to AED 4,000 per month, saving around AED 2,000 to AED 4,000.

Transportation

• Use public transport: Utilise the Dubai Metro, buses, and trams instead of owning a car. Check out the RTA website for routes and schedules.
• Carpool: Share rides with colleagues or friends. Apps like Carpool Arabia can help you find carpooling options.

‍Potential savings:

• You can save up to AED 500 - AED 1,000 per month on fuel, maintenance, and parking fees by using public transport and carpooling.

Food and Groceries

• Cook at home: Preparing meals at home is significantly cheaper than dining out. Websites like Budget Bytes offer affordable recipe ideas.
• Shop smart: Buy groceries in bulk from hypermarkets like Carrefour or Lulu Hypermarket and take advantage of sales and discounts.

‍Comparison:

• Eating out: Average cost of a meal at a mid-range restaurant: AED 40-50.
• Cooking at home: Average cost of a homemade meal: AED 10-15.

‍Potential savings:

• You can save up to AED 1,200 - AED 1,500 per month if you eat out twice a day (AED 80-100 per day) vs. cooking at home (AED 30-45 per day).

Entertainment

• Explore free activities: Enjoy free or low-cost activities such as visiting parks, beaches, and cultural sites. Check out Dubai Calendar for free events.
• Limit dining out: Reduce the frequency of eating out and opt for more budget-friendly options when you do.

‍Examples:

• Free activities: Kite Beach, Dubai Fountain, Al Fahidi Historical Neighbourhood.
• Budget-friendly dining: Cafeterias, shawarma shops, and food courts in malls.

‍Potential savings:

• You can save up to AED 500 - AED 800 per month by exploring free activities and limiting dining out.

Utilities

• Reduce consumption: Be mindful of electricity and water usage. Turn off lights when not in use and fix any leaks promptly.
• Switch to energy-efficient appliances: Invest in energy-efficient appliances to lower your utility bills in the long run. Websites like Eco-Friendly Appliances offer options.

‍Potential savings:

• You can save up to AED 200 - AED 300 per month by reducing consumption and using energy-efficient appliances.

Clothing and personal items

• Shop during sales: Take advantage of seasonal sales and discount events like Dubai Shopping Festival.
• Buy second-hand: Consider buying pre-owned clothes and accessories from thrift shops or online marketplaces.

‍Examples:

• Second-hand shops: Thrift for Good, Retold, and The Luxury Closet.
• Online marketplaces: Dubizzle, Facebook Marketplace.

‍Potential savings:

• You can save up to AED 300 - AED 500 per month by shopping during sales and buying second-hand items.

Summary of potential monthly savings:

• Housing: AED 2,000 - AED 3,000
• Transportation: AED 500 - AED 1,000
• Food and groceries: AED 1,200 - AED 1,500
• Entertainment: AED 500 - AED 800
• Utilities: AED 200 - AED 300
• Clothing and personal items: AED 300 - AED 500
• Total potential savings: Up to AED 4,700 - AED 7,100 per month

By adopting a frugal lifestyle and making these small changes, you can save a significant portion of your income each month. These savings can be redirected towards your financial goals, such as paying off debt, building an emergency fund, or investing for the future. Living frugally doesn't mean sacrificing quality of life; it means making smarter choices to ensure financial stability and peace of mind.

Manage debt wisely with Eltezam

If you're struggling with debt and it has been handed over to Eltezam, it’s crucial to address it promptly. Eltezam is a debt collection company that can help you regain control of your financial situation. Visit our self-serve website to explore your payment options. Whether you want to pay the balance in full, set up a payment plan, or ask for a payment from someone else, Eltezam is there to help you stabilise your finances in a way that works for you.

Further reading

• 5 Top Tips for Living Frugally in Dubai
• UAE Grocery Shopping: Here Are 9 Ways to Cut Costs & Save Money
• 32 Banging Budget Restaurants as Chosen by Dubai's Top Chefs
• 50 Free Things to Do in Dubai
• 50 Free Things to Do in Abu Dhabi

By incorporating these tips and using the provided resources, you can successfully navigate a frugal lifestyle in the UAE, ensuring financial security and greater peace of mind.