What Should I Do Before I’ve Saved Up AED 50,000 to Work With You?

The minimum contribution to work with me is AED 50,000. Here’s a quick guide on what to do before that.

1. Build an Emergency Fund

Before you start investing, it’s crucial to have a safety net. I recommend building an emergency fund of at least AED 50,000–100,000, depending on your personal circumstances. This is especially important if you have a spouse who doesn’t work or children to care for. Having this reserve in place will provide peace of mind and protect you from financial setbacks.

2. Increase Your Income (If Necessary)

This step is particularly relevant if your monthly income is under AED 30,000. If you’re earning less than that, and your expenses are eating into most of your income, it’s crucial to focus on increasing your earning potential before investing. Consider investing in your skillset, education, or professional development. By boosting your income, you’ll be in a much stronger position to start building wealth over the long term.

3. Pay Off Bad Debt Only

Before adding investments into the mix, prioritize paying off high-interest debt—like credit card balances. The faster you pay off debt that carries aggressive interest rates, the less you'll pay in the long run. On the other hand, non-interest-bearing debts like mortgages or community-related debts can be managed more gradually even as you build cash flow. Once you've tackled high-interest debt, you can start building cash flow, which will ultimately help you pay down any remaining obligations more efficiently.

While building cash flow can help reduce debt over time, waiting too long after you've established your emergency fund may result in your debt becoming more expensive than necessary.

A Few Considerations

My advice is primarily tailored for individuals with fixed salaries, rather than business owners or those working in commission-based roles. If your income fluctuates or you’re in a period of career transition, it may be a good idea to hold off on investing until you have more stability.

If you're unemployed, in the process of switching careers, or starting a new business, now may not be the right time to dive into investments. Similarly, if you’re a single parent, you’ll need a larger emergency fund to cover unexpected costs.

For parents of children nearing college age, if you haven’t started investing yet and were planning to rely on cash reserves to fund their education, you may not be in the position to invest.

In Conclusion

This article is pure educational. It is intended to provide general guidelines for financial planning and investment preparation. It is not a substitute for qualified financial advice tailored to your specific circumstances.