The financial effects of the pandemic are ongoing, making money management more important than ever. Ramzi Khleif, general manager for StashAway MENA, the region’s newest digital wealth management platform, speaks to MOJEH to share his top tips for managing your finances in both unprecedented circumstances and day-to-day life.
Plan Your Goals
Set financial goals according to what you want to achieve. Are you planning to buy a property in five years, for example? Next, create a timeline for each goal, and you can see how much you need to save every month to achieve it.
Make Investments Now
Saving is great, but if the money just sits stagnant, ultimately you are losing out, so invest it to make it work harder, and start as early as you can. You need to put away less per month from age 25 to reach a certain target sum than from 35, for example.
Diversify Your Portfolio
A diversified investment portfolio, spread across different asset classes, is good for managing risk and reducing volatility. Include different geographies, sectors, maturity dates and structures, as if some are doing badly, but others well, it should balance out.
Take Risks... Or Don't
Risk is measured by volatility, with larger swings in value over shorter periods of time. If you’re investing money short-term, you don’t want to risk losing it, so be conservative. But over a longer period, say 20-30 years, then you can afford to take more risk.
Monitor Your Spending
Be mindful of the money you have going in and out, and the leftover you have free to invest, and also be aware of any fees attached to your portfolio, as this will impact your profit. Digital systems like StashAway use automate processes, resulting in lower fees. stashaway.ae
