Pocketful of Dirhams

What’s the investment outlook for the second half of 2021?

While the start of 2021 was bleak, with the world still in the grip of a pandemic that had already ravaged major economies, the outlook now is more positive. There is a sense of hope, thanks to rapid progress on the vaccination drive and coronavirus restrictions easing once again. The global recovery is backed by huge levels of monetary and fiscal support, as well as improving growth and earnings that have translated into significant rallies in most equity markets. However, rebounding economies also bring uncertainty. Inflation is ramping up and monetary support will soon start to unwind, putting countries’ employment levels at risk.

With geopolitics also back on the agenda, as the Biden administration engages with the world once again, any decision there has the power to move markets. At the same time, the vaccination programme has been uneven, with emerging markets getting the short end of the vaccine stick. And let us not forget – the Covid crisis is far from over. So, as we enter the second half of the year, what is the outlook from here?

Host Alice Haine is joined by Samy Chaar, chief economist at Swiss private bank Lombard Odier, who guides listeners on what to expect next.

What to do if your spouse earns more or less than you

The topic of salaries can be a sensitive subject between couples, but what should spouses do if their partner earns more or less than they do?

There are a number of issues for couples to be aware of in this situation, such as some partners believing they deserve a bigger say in shared finances because they earn more, which could lead to resentment.

Financial experts say this should never be the case – and creating an equal footing between both spouses when it comes to money is important regardless of how much they earn. They say communication and honesty are key for couples to create a secure financial future together.

Host Felicity Glover, the personal finance editor at The National, is joined by Georgina Howard, a chartered financial planner at The Fry Group, who shares her top tips on how to create financial equality in your marriage.

How to avoid 'lifestyle creep'

Consider this: You’ve just received a promotion and a pay rise at work. But what plans do you have for that extra money? Will you save it – or will you spend it? For some, saving is the obvious way forward because they are happy to live within their means on their old salary and anything extra is a bonus to secure their financial future. But for many others, the temptation is too great and they see the extra money as an excuse to pay for items they couldn't afford before. Examples could be taking out a loan to buy a fancy new car that you don’t need or upgrading to a larger, more expensive apartment.

This is known as lifestyle creep – or lifestyle inflation. As the phrase suggests, it can creep up on you before you realise that you’re living beyond your means and constantly need more promotions and pay rises just to keep up with your rising financial responsibilities. But how do you avoid lifestyle creep and keep your financial goals on track?

Host Felicity Glover is joined by Carol Glynn, the founder of Conscious Finance Coaching, who offers her advice on the best ways to prevent lifestyle inflation creeping up on you.

Are you ready for a cashless life?

While the Covid-19 pandemic has changed the way we live and work, it has also accelerated our switch to using contactless cards and e-wallets to pay for goods and services. Millions of people have opted for cashless payments since global lockdowns came into force in March last year amid concerns about the spread of infection through bank notes and coins.

In March, a survey by moneytransfers.com, which used YouGov data to rank 21 countries that are likely to accept a fully cashless economy, found that consumers in India, the UAE and Indonesia were the most likely to choose digital payments. Meanwhile, another study by Standard Chartered last September found that 64 per cent of respondents expect the UAE to be a fully cashless society by 2030.

Co-hosts Felicity Glover and Alice Haine discuss the future of cash and whether or not it will continue to play an important part in our financial lives post-pandemic.

The best travel deals for summer 2021

It’s been more than a year since our 2020 travel plans were disrupted because of the Covid-19 pandemic – and many of us are keen to get back in the air, visit family or take a well-deserved holiday. With vaccination programmes now in place in many countries around the world and travel corridors opening up, it's time to start planning our summer vacations.

There are a number of financial factors to consider before taking the leap, including the cost of flights, health insurance and whether or not airlines will continue offering flexible tickets in case our travel plans have to be cancelled at the last minute. The good news is that there are quite a few flight deals being offered by the likes of Emirates, Etihad and low-cost airline flydubai – but it's best to get in early to take advantage of the lower prices.

Host Felicity Glover is joined by Hayley Skirka, The National’s travel correspondent, who shares her recommendations for the best travel deals this summer.

Is it cheaper to rent or buy a home in the UAE?

The UAE property market is buoyant once again after changes to mortgage rules and new visa programmes for expatriate retirees and foreign investors boosted sentiment in the sector. Dubai property transactions hit their highest level since 2010 in the first quarter of this year, according to ValuStrat. The positivity in the market is encouraging many first-time buyers to snap up a home at a time when prices are still affordable and interest rates remain low.

But with many residents in the UAE still choosing to rent, how do they decide which is the most cost-effective option over the long term? While renters can walk away without the worry of clearing a mortgage, they also lose the money they have paid to a landlord during their time in a property. In turn, for buyers looking to get on to the property ladder, raising a deposit can be a big financial challenge. 

Host Alice Haine is joined by Ben Crompton, managing partner of Crompton Partners Abu Dhabi, who guides listeners through the different options.

Are you financially cheating on your partner?

It’s all very well to keep your personal finances to yourself when you are single. But what happens if you continue this habit when you are married? Financial infidelity can have a devastating effect on a marriage and create huge trust issues between couples if one of them is not honest about money. From hiding purchases to having a secret bank and credit card account or taking out a loan without their spouse knowing about it are just a few examples of financial infidelity. In 2020, a survey by creditcard.com found that financial infidelity in marriages is on the rise, with 44 per cent of US respondents admitting they kept money secrets from their spouses.

However, experts say there are a few red flags to help you recognise when your partner might be keeping money secrets from you. These can include emotion-charged conversations when the topic of money is raised, finding bank or credit card statements you know nothing about, being removed from a joint bank account or if they suddenly appear to be flush with cash. But it seems that you are more likely to commit financial infidelity according to your age. Another survey conducted by creditcard.com in February this year found that millennials are more likely to commit some form of financial infidelity with their partner than Gen Xers and Baby Boomers. So how do couples ensure they remain financially faithful? Communication is key, experts say.

Host Felicity Glover is joined by Dr Sanjay Tolani, the chief executive and managing director of multi-family advisory firm Goodwill World, who shares his thoughts on why it's important to be financially faithful in a marriage.

What borrowers have learnt from five years of The Debt Panel

When a group of debt experts sat around a conference table at The National’s office in Abu Dhabi five years ago, they never imagined the discussion would help to ease the debt problems of hundreds of UAE residents. At the time, banks were inundated with borrowers unable to repay their liabilities because they could no longer take on fresh credit following the launch of the Al Etihad Credit Bureau. Set up in November 2014, the bureau brought transparency to the lending industry by assembling a credit record of the nation’s financially active residents.

However, those that had borrowed excessively in the past could not take on new loans or credit cards, leaving many with debts they had no hope of repaying. This is why The National introduced The Debt Panel in April 2016 to help those in desperate need solve their debt woes. Since then our debt experts have answered more than 260 debt panel questions, with some readers going on to resolve their financial difficulties completely. So, what has changed since the advice column was first launched?

Host Alice Haine is joined by Philip King, the global head of retail banking at Abu Dhabi Islamic Bank and one of the founding members of The Debt Panel, who shares his thoughts on the importance of the advice column in the UAE.

Who wants to be a millionaire?

Becoming a millionaire is a dream for many – to have the financial freedom to never worry again about paying bills or living from pay cheque to pay cheque. But reaching that $1 million mark is easier said than done. It takes patience, discipline and a "millionaire mindset" to reach your financial goals.

It’s also about having a long-term investment strategy, living below your means and sticking to a budget that will allow you to invest your savings regularly and get it working for you as soon as possible. But what exactly is a millionaire mindset and how do you manage your money like a millionaire?

Host Felicity Glover is joined by Sam Instone, the co-chief executive of wealth management company AES, who shares his advice on how to change your mindset and reach your financial goals.

Helping your children learn about the importance of charity

While saving and budgeting are important habits to teach children when they are young, financial experts say generosity and gratitude are also essential components of financial literacy programmes. Understanding the importance of giving back can lead to positive affirmations for children, making them feel as though they can make a difference in the world and help others less fortunate.

According to some studies, generosity towards others activates a part of our brain that is similar to feelings of pleasure – and can help us become more empathetic, responsible and kinder as adults. But how do we teach our children how to give back and help others – and is there a certain age we should begin?

Host Felicity Glover is joined by Soniyaa Punjabi, a life coach and founder of Dubai-based well-being centre Illuminations, who shares her top tips on the best ways parents can teach their children about charity.