The disruptions caused by the Covid-19 pandemic are prompting some people to consider making the most of their salaries, as well as any earnings from real estate and other holdings to fend for themselves and their family members for the difficult months ahead.
New variants and rising infections have pushed many governments to adopt tough preventive measures along with lockdowns of commercial and business activities for a number of hours. This will likely impact the daily earnings potential of business owners.
Amid these difficult times, some Omanis and others have taken to social media to talk about the need to curtail expenses and save for a rainy day.
Some have lamented that the pandemic conditions have forced them to shutter their businesses or opt for retirement.
Others said they are saddled with debts accruing from the bankruptcy of their businesses. The added concern for them is the value-added tax (VAT) that will come into force next month.
The question many of them have to grapple is thus: How can people with limited income of RO 400 or less be able to bear any increase in prices? Also, how will such people think of saving in these circumstances?
Savings may be possible for those earning RO 1000 or more per month. The latter group should think about saving 20 per cent of their income monthly by depositing this portion in financial and banking products as is the case in other countries.
This does not mean that all those earning RO 400 or less cannot save. It requires such individuals to be financially savvy and prudent in his daily expenditures.
Any success in saving now will enable him to live a better life in the future. It requires prudence in the spending behaviour of his family while eschewing expenses that are unnecessary and potentially harmful too.
While we cannot do without the essentials of daily living, we can certainly dispense with luxuries as much as possible.
We must strive to save some money to secure our future live and ensure that our children are not a burden on others once we depart from this life.
In the coming period the prices of goods will be raised following the application of 5 per cent value-added tax on many luxury products. We need to budget our expenses based on our family’s priorities by rationalising spending and embrace saving as well.
HAIDER AL LAWATI
haiderdawood@hotmail.com
Oman Observer is now on the WhatsApp channel. Click here
