gold gold gold — That’s what Swedish pop group Abba dreamed of when they released their hit in 1976.
Fast forward to October 2021 and this stunning foursome has reportedly amassed a fortune of over $1 billion.
If that’s not the definition of securing your financial future, I don’t know what it is.
Unfortunately, not all of us can become millionaires. According to Statista, only his 3,331 out of the approximately 8 billion people walking the earth have accomplished this feat.
China leads the world with 1,133 billionaires, and according to the latest report, only 13 can claim such rights in the UAE.
That being said, Dubai is home to over 200 centimeter millionaires (those with net worths over $100 million) and about 68,000 billionaires, says the Henley Global Citizens report.
In Abba’s words, “…and yet I don’t seem to have a cent left. It’s a shame.”
But we still have a lot of money. RankRed data shows that there is currently about $40 trillion in circulation.
It’s safe to say you can’t secure everything, but with a little strategy and inspiration from the ‘Abba Effect’, you can have just enough to secure your family’s financial future. can.
long term view
Financial knowledge is like eating healthy. If you want to get in shape, you might want to eat a burger or fries and then wash it down with a milkshake, but it won’t help you reach your long-term fitness goals.
You have to choose between salad, water, and tea, but you can still enjoy a delicious snack every now and then.
So instead of thinking first about what will be best now, it will be better for your family if you think about what will be best for your family 5, 10, 15 years from now.
For example, if you are a new parent or would-be parent, you can open a high-yield savings account for your child to deposit incremental money that compounded over time.
Deposit $100 first, then add $100 each month for 18 years at an annual yield of 10%, and your child can begin adult life with over $55,000 in cushion.
It also sets an example for them to do the same for the rest of their lives, saving more than $1 million by the time they’re 46, according to consumer financial services company Bankrate.
Protect your life, protect their future
Last October, Zurich International Life surveyed 500 UAE-based respondents on how they would cope financially if they were diagnosed with a serious illness.
About 8 in 10 worried that their savings would run out if they were seriously ill.
These concerns explain why, since the Covid-19 pandemic, more and more people are choosing insurance to protect themselves and their families from invisible risks.
Life insurance is an often overlooked component of financial security, but there are two strong options: term life insurance and whole life insurance.
The former is guaranteed for a certain period of time and the latter for life.
Choose the plan that best suits your situation and premium budget to add another layer of financial security in case you pass away
Bas Cooiman, CEO of DHF Capital, said:
Depending on your situation and premium budget, choose the plan that best suits you to add another layer of financial security in case you pass away.
ask for financial assistance
Setting clear goals, budgeting for savings, paying off debt, and investing where possible are all highly recommended measures to secure your family’s financial future.
But if you choose to take responsibility for spending the money you earn and save for your family, it’s important to look at your finances objectively.
A recent YouGov survey found that 20% of UAE residents say they have less disposable income than they did a year ago, so it may be helpful to seek advice from a trusted financial advisor.
Money is often an emotional issue, so it’s easy to skew your choices based on what’s most exciting, opportunistic, or fun at the moment.
These short-term decisions tend to have long-term repercussions and produce less than ideal results.
A financial advisor can help you avoid these pitfalls by outlining clear strategies that put you and your family on the right path.
Advisors take a holistic view of your financial situation, consider your goals and risk profile, and devise an achievable plan for you.
The question is, do you want to be Abba in 1976 or 2021?
Bas Kooijman is CEO of DHF Capital, a financial services securitization firm.
Updated: April 28, 2023 at 6:02 PM
