The tax free system in Dubai along with the extravagant lifestyle and (mostly) desirable weather it has to offer has helped to make Dubai one of the most attractive destinations for expats. However, the cost of living in Dubai is continuing to rise. In a survey conducted by Mercer in 2014, Dubai ranked 67th, a jump of 23 places from its ranking the previous year, proving just how rapidly the cost of living in Dubai is rising. But unfortunately, this rise in the cost of living is happening at a faster rate than salary hikes, forcing some residents to use debt to cover basic costs, like rent. Something which is clearly not sustainable.
In fact, a previous survey carried out by compareit4me.com, revealed that 77 per cent of respondents have credit cards, with a quarter of them owning more than three. This is a rather risky trend, because it often becomes the case that consumers find their monthly debt repayments becoming unmanageable. The survey also revealed more than 11 per cent of those who took part use their personal loan for debt consolidation which is only a stop-gap solution for managing a financial need.
Once you're in a position of being in debt, it's hard to navigate your way out of it. It also becomes something of a double kick in the teeth, considering most people relocate to the UAE with the aim to save. Therefore, while it's easier said than done, doing anything possible to avoid slipping into a situation of being in debt in the first place is essential. Fixing a budget to live within is a must and there are smartphone Apps like Wally to help you do this, but of course a higher salary always comes in handy.
However, it's the negotiating of that higher salary which isn't exactly easy. In fact, it's quite the opposite. It takes a considerable amount of skill and practice to be able to ask for more money without it being awkward. Whether you're aiming for a promotion within your present company or taking steps towards getting a new job, there are key things you can do which will help.
Do your research, look up the current average salary for your sector and calculate an appropriate figure that fits well within that. That will demonstrate you've done your homework, and if you're not sure what the average is, the rule followed by most is to not move to another job for less than an increase of Dh3,000 on your current/previous salary.
Treat the situation like a competition, whether it's face to face or via e-mail/phone. Know your value - how many years of experience do you have? What makes you the best candidate for the job? Being able to list your strengths confidently will highlight why the extra investment in you will be good for the company.
If you're aiming for a promotion, your employer is obviously fully aware of your current salary. But when speaking to potential employers, if asked how much you are making don't feel pressured into saying the exact amount. Unless you're earning more than the average for your position in the industry, give a figure which matches your industry average.
It's also worth remembering that a salary increase isn't just all about the basic salary. If your employer isn't able to offer you a direct increase, try to negotiate with add-ons. Good medical insurance for you, and your family, a bigger housing allowance, transport costs and even stocks and shares in the company. All of these things can save and make you a substantial amount of money over a period of time.
If you do negotiate a higher salary, don't think of that increase as free cash. Use it for debt repayments. Any missed or late debt repayments are now logged by the Al Etihad Credit Bureau and will affect future applications for bank products - whether it be for a loan, credit card or mortgage.
By Jon Richard
The writer is the chief executive of compareit4me.com. Views expressed by him are his own and do not reflect the newspaper's policy.
