Many residents not ready for new global downturn

We are caught in uncertain times when it’s anyone’s guess which way the economic winds are blowing.

Nobody knows what’s going to happen this quarter but are we financially prudent just in case the global economy heads for another recession?

Not so, according to UAE residents who took part in an Emirates24|7 poll.

The majority of the respondents (39 per cent) who participated in the poll said they live hand-to-mouth, with no reserves for a rainy day.

“I’m the only one who earns in the family and my salary just meets the monthly expenses so there is no way I can put some money aside to help me if there is another wave of economic stagnation,” said one respondent.

Besides, another 24 per cent also seem to have no cash in the bank to help them through uncertain times. This section of respondents has money just to meet one month’s expenses.

“I can keep my family here for one month in case I lose my job, after which I’ll have to go back in case I can’t find another job in this time-frame,” said another respondent.

Even though the majority is unprepared, there are people who have kept money aside for any untoward happening.

Seventeen per cent of the participants said they can cover themselves for five months and another 20 per cent said they have 10 months of expenses ready, showing financial prudence.

“In the last few years doing more with less seem to have worked for me and it will be better for me and my family if I continue living like this. Living on less - even in better times - is a way of strengthening one’s financial position and this is something we need to be doing at all times anyway,” said one respondent with nearly one year’s expenses in hand.