Customers in need of extra care Understanding your financial health

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Regular financial check-ups, similar to medical check-ups for wellbeing, are essential. This is especially true for those rebuilding financially. This guide offers a simple approach to conducting a financial health check in the UAE.

Financial well-being involves meeting expenses, avoiding overwhelming debt, and saving for future goals. It ensures peace of mind, security, and unlocks opportunities.

Consider these steps to assess financial health

  • Start by listing your income sources and monthly expenses like rent, utilities, and food. If expenses exceed income, it may be time for a re-evaluation.
  • Calculate total debts, including credit card balances, loans, and mortgages. High debt amounts can indicate poor financial health, especially if they consume a significant portion of your income.
  • A modest but healthy savings account, is a sign of good financial health. Additionally, having an emergency fund for unexpected expenses is a sound financial buffer.
  • If you have investments, assess their performance. If they are not yielding returns, perhaps consider revising your investment strategy.
  • In the UAE, the Etihad Credit Bureau provides credit reports that reflect your financial history. A good score can facilitate securing loans or credit cards.

The benefits of a financial health check

  • Improved money management: Gain clarity on your income and expenses to make informed decisions.
  • Reduced financial stress: Understanding your financial status can bring peace of mind.
  • Future planning: With a clear financial picture, you can plan better for future goals.

Regardless of your financial background, a regular health check of your finances is essential. It not only highlights areas for improvement but also paves the way for a secure, stress-free financial future. By being proactive, you ensure that your financial journey in the UAE is on the right track.

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Did you know? Why updating your contact details is important

Not updating your bank about a job or a change in contact details can have implications on you. The bank will not be able to contact you or share important information about your accounts. If your salary transfer is disrupted, missed, or delayed, and payments occur during this period, potential penalties and negative reports to credit bureau may arise. Should payment default emerge, the bank will not be able to contact you for guidance on how to regularize your account. Additionally, banks may reassess your creditworthiness, potentially affecting your access to future loans or credit cards. It is in your best interest to update your bank.

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Knowledge quiz Why it’s important to tell your bank about a change in employment especially when you have an active loan or credit card payments


Tags: Financial wellness Articles Guidance & advice Planning for the future Digital products & services Financial health assesment Steps for financial health check