According to the EdArabia update of 2020, expatriates represent approximately 88.52% of the UAE population. This is a pattern seen quite often present-day as globalisation had made it easier for individuals to seek opportunities around the world. A secondary source of income can be a valuable addition for all individuals across borders.
If you happen to be an individual who regularly sends money back home, this blog is aimed at you, YES YOU. Since “salary” is the primary source of income, it can be challenging reserve a large chunk of it for remittance, especially when the large fixed expenses need to be paid (e.g., bills, rents, etc.) We’ve all witnessed the story- Muhammad with a family back home is unable to save enough for themselves and face difficulties managing their money regularly. This trend continues until the age of retirement – and at this time, when money is needed the most, it’s not there.
Generally, 65% of Americans save little to nothing from the salaries, meaning that most of their financial goals are put off, and their hard-earned money does not provide them with growth opportunities. This is the epitome of why a secondary source of income can be a game-changer for families worldwide.
“The goal of retirement is to live off your assets-not on them.”
― Frank Eberhart
The concept: Save a chunk of your salary to invest in real estate, earn rental income, send the secondary source of rental income back home.
It might sound a tad bit oversimplified but think about it.
If your secondary source of income provides you with enough capital to send back home, this frees up your primary source of income. Now, that you’ve freed up your main source of income, it is essential to be smart with it, rather than using that money to upgrade your lifestyle impulsively. You should have a financial plan or goals set for you and your family, and use this flexibility to strive towards them.
Now you may be thinking of all the possible ways that you might be able to accomplish this, that’s a good start. With SmartCrowd, if you save a portion of your salary to invest, it’ll allow you to start earning regular rental income. Having this tangible resource as a secondary source of income reduces the dependency on one source to support your livelihood. Further, in the long term, it can also provide a safety-net in case of major events such as career changes.
Added Bonus: You will be able to enjoy FX benefits as AED could convert to a higher value in your local currency pending on the market.
As seen in the figure above, and thoroughly explained with relevant statistics in our blog “Real Estate Returns From a Different Lens,” currency devaluation is proved advantageous for foreign investors. Furthermore, you can make more money on your investment when evaluated from your local currency point of view. To conclude, acquiring real estate and investments as a secondary source of income can be a fruitful opportunity for families around the world. Most of us work hard to earn the money we attain from salaries, and we think its time for your money to return the favour.