Many Filipinos live comfortably in their own living space with their family in the country. But upon arriving abroad to work for a living, some can feel lost or get culture-shocked about the living situation in other countries.
Here in the United Arab Emirates (UAE), the most common living situation is flat-sharing. While some first-time overseas Filipino workers (OFWs) find a job with a high-paying job right off the bat, depending on the demands of their skills in the industry, it is easy to get tempted to immediately jump on the bandwagon of renting their own space.
But the question is not about whether you can afford it, but “Are you underestimating it?”
Financial coach Jay Adrian Tolentino says that the problem with renting your own space is falling into the trap of lifestyle inflation. He shared that several people get broke because of this, even if they earn 30K or 40K monthly.
“A bigger space will require you to buy new furniture or appliances you never needed before but now you have to just fill the extra space,” Tolentino said.
“They may also overlook the true cost of living alone, including rent, utilities, and other expenses,” he added, detailing additional costs.
When renting your own space in the UAE, you must include not just the rent but also the fees for the chiller, maintenance, Ejari (registration of your rental or lease contract in Dubai’s system), Dubai Electricity and Water Authority (DEWA), and many more.
Instead of rushing to rent their own flats, Tolentino said OFWs must take their own time and carefully plan before making this huge decision.
“A good rule of thumb is to not spend beyond 28% of your salary on housing expenses,” he said. “You have other important things to do with money like spending on experiences and investing for your future.”
“But ideally, you have to consider having one if you have a family living with you here in Dubai,” he added.
For single professionals and first-time OFWs, Tolentino gives a piece of advice: “There’s really nothing wrong in sharing a flat. Just make sure that you are with the people you can trust, who are aligned with your values, and who will always support your endeavors.”
