# Startup costs



## voipkid (Aug 30, 2013)

Hello,

I know everyone's lifestyle habits differ. But I am trying to get an idea on how much money I would need to float myself before my first months pay etc

Based on the assumption that my employer would cover my first months rent or accomodation allowance on top of income.

I don't drink alcohol, I smoke (but cheap out there), wont party or fancy restaurants. Would need to setup Fibre for the flat, mobile phone, tv etc Happy to sort of tuff it out for the first month money wise.

Transportation costs to work etc Food to eat

What have similar people in my position done before?


----------



## ElCalvo (Jan 26, 2013)

voipkid said:


> What have similar people in my position done before?


Probably they've read the stickies first ... You should too ! Answers a lot of your questions. 

Wish you a lot of success and ... Enjoy ;-)


----------



## voipkid (Aug 30, 2013)

Whoops missed that - apologies  

With regards to the residency visa for working requirements - will the employer arrange this before you come to Dubai so that once settled you can opeen a bank account for salary?


----------



## vantage (May 10, 2012)

voipkid said:


> Whoops missed that - apologies
> 
> With regards to the residency visa for working requirements - will the employer arrange this before you come to Dubai so that once settled you can opeen a bank account for salary?


Residence visa cannot be sorted before arrival. Requires blood test, x-ray, finger prints, eye scan etc.
A good company will have it nailed in 2 weeks.

Don't forget your first months rent cheque will likely be a six month or twelve month cheque, not a single month. 
Ask your employer to give you a bigger advance than one months rent!


----------



## voipkid (Aug 30, 2013)

Hi Vantage thank you for clearing that up for me.

Again depending on type of role and how much clout you carry as an individual - when you say advance. Do you mean my employer would give me an advance for rent to cover a set period of rent and that this figure would be deducted per month from my monthly wage packet?


----------



## Dubai here i come! (Aug 7, 2013)

how long should it for a bank account.?


----------



## vantage (May 10, 2012)

voipkid said:


> Hi Vantage thank you for clearing that up for me.
> 
> Again depending on type of role and how much clout you carry as an individual - when you say advance. Do you mean my employer would give me an advance for rent to cover a set period of rent and that this figure would be deducted per month from my monthly wage packet?


Depends on the employer.
You are likely to get your full package as salary, and allowances.
Usually roughly 60/40
This is efficient for them, as it reduces how much they pay you when you leave.
Some companies break it down into housing/transport/schooling/flights home etc.
Others give you a lump sum

Ask for an advance on your allowance.
Some will oblige. If not, you need a pot of cash to get started!


----------



## ziokendo (Jan 7, 2012)

I remember I needed quite a lot of money to get started.

I negotiated 2 month salary relocation allowance, so first month I have got 3 salaries and I still needed to put - if I remember correctly - at least another salary out of my saving to get everything rolling, so 4 salaries in my case and holding a bit my breath.

This because you pay several months of rent in advance.

Then after the first 3/4 months it becomes relatively easy if you don't overdo.

The fact is once you arrive it will take 2-4 weeks to get the residency stamped, only then you can open a bank account, only after you receive the chequebook you can rent a house, so the first 45 days either you are in a company accomodation where you can reach your work place by public transport [that was my case] or your cost will inflate much more than that! because you can't simply arrive and rent a place long term.

best wishes




voipkid said:


> Hello,
> 
> I know everyone's lifestyle habits differ. But I am trying to get an idea on how much money I would need to float myself before my first months pay etc
> 
> ...


----------



## voipkid (Aug 30, 2013)

Thankyou everyone for explaining it for me. Really appreciate the input.


----------



## vantage (May 10, 2012)

voipkid said:


> Thankyou everyone for explaining it for me. Really appreciate the input.


I had some cash of my own, but got a full month's advance (all in - salary and allowances)
Hey gave me the option to repay over a year or faster.
I chose to repay over 3 months. Tough, but got it all out of the way ASAP.


----------



## vantage (May 10, 2012)

One thing that lots of people told me when i arrived is that "it will take you a year to break even"

I had a spreadsheet on Excel. It was based on research before arriving, and updated weekly as i found out the real costs (some lower / some higher) and i kept tabs against this for a full 12 months. (i've shelved it now, after 14 months!)

I had estimated that i would break even after about 8 months.
It was almost 12 months, to the day, that all accounts, credit cards etc went into the black, and the first tranche of money was ready to be transfered out of the Country.

So - people here were right, funnily enough!

The break-even included paying off the additional capital, or seed money i brought with me to set myself up. Important to factor this in to any calcs..

The big killers?
paying your annual rent (quarterly / annually or whatever) up front, or out of your current year's salary, whilst also trying to save enough for the following quarter / year. This puts you instantly 'behind', playing catch-up.
Similarly for school fees.
car deposits
miscellaneous household costs - additional furniture, stuff for the kids
un-planned flights home (funeral)
sorting out property back home for rental (cleaning / painting / gas certificates / agents etc)
selling cars (often fast, so at a bit of a loss)

If you have a plan that says you will save 20% / 25% / 30% of your TOTAL income, do not be disheartened if it doesn't work out immediately. Work at it, and it can become a reality. The key is to keep any sums you've done updated to ensure that your target is generally realistic. You can't achieve an unrealistic target, so you will give up trying.

The key message here is - if you are coming out 'for a couple of years' you are not going to go home rich. The 'pot of gold' is quite expensive!
Not only does it cost to come here, it will cost you to go home too, and re-start life wherever you've come from. (the end of service gratuity is clearly a help here, if you stay long enough!)
so, if you're here for 5 years, you might hit your 25% target savings for 4 of those years, so your real achievement is about 20%.

be REALISTIC in your cost assumptions. Everything you can possibly want to know is listed on this forum somewhere, along with tools like Dubizzle and Propertyfinder etc.
It was good to know some of my assumptions were high, as well as low, which assumed i hit the mark about right (more luck than judgement!)

just some rambling of a fairly fresh arrival of financial experiences....

of course, if you want to skydive every week and eat freshly imported blackberries with gold leaf on daily, and drive a fleet of silly cars, then you can throw all of this out the window (unless you're a banker..!)


----------



## imac (Oct 14, 2012)

vantage said:


> ...just some rambling of a fairly fresh arrival of financial experiences...


That was actually very well put together...

A key learning for me has been, there is no such thing as "this is the most it will cost"... it really comes down to how much you end up paying for something, there is always something "better" for a bit more...


----------



## voipkid (Aug 30, 2013)

Vantage would you say your outgoings were the norm or higher due to existing financial commitments based on the fact you have your family in Dubai and property back in the UK?

Sorry for cross posting from another thread where I gave a brief example of my situation. But in my context:

No mortgage to pay in UK
No credit commitments to pay in UK (except mobile)
Outgoings in Dubai would be
Rent
Telecoms 
Water/Elec
Food
Ciggs
Child payments back to UK
Transport costs to work
Would not buy a Car
I don't drink
Eating out
Sight seeing

I know my outgoings aren't exclusive and will fluctuate as lifestyle habits change. But I have far less outgoings and also distractions that could potentially drain my cash.

In your opinion would this put me in a stronger position financially?


----------



## voipkid (Aug 30, 2013)

I work in IT Infrastructure with 14+ years experience - I should still be able to command a decent salary based on IT Jobs I have seen so far being advertised.


----------



## vantage (May 10, 2012)

voipkid said:


> Vantage would you say your outgoings were the norm or higher due to existing financial commitments based on the fact you have your family in Dubai and property back in the UK?
> 
> Sorry for cross posting from another thread where I gave a brief example of my situation. But in my context:
> 
> ...


i am 'cash positive' in the UK.
No debt, other than mortgage which is 100% covered by rental income, including float for equivalent of two void months per year.

Children here = higher rent (you need a bigger place), school fees, their entertainment, additional flight costs home or on holiday, music lessons, swimming club, etc etc etc etc etc etc! Much of this would be factored at home too, except for the compulsory school fees.

just factor in any UK based costs you have, and see how it adds up. i assume these are fairly well defined (Child Support etc)


----------



## Dubai here i come! (Aug 7, 2013)

vantage said:


> One thing that lots of people told me when i arrived is that "it will take you a year to break even"
> 
> I had a spreadsheet on Excel. It was based on research before arriving, and updated weekly as i found out the real costs (some lower / some higher) and i kept tabs against this for a full 12 months. (i've shelved it now, after 14 months!)
> 
> ...


greatly put up.....

would this mean it is a different ball game. As i will be moving to dubai byend of sept.


----------



## voipkid (Aug 30, 2013)

Thanks again Vantage for taking the time and trouble to answer my question.


----------



## GumGardner (Aug 24, 2013)

I have my savings in a basic UK current account with debit card and now I'm worrying about transferring it to my Dubai bank account when it's open. 
What are your thoughts please?


----------



## vantage (May 10, 2012)

GumGardner said:


> I have my savings in a basic UK current account with debit card and now I'm worrying about transferring it to my Dubai bank account when it's open.
> What are your thoughts please?


worried about how to do it, or worried about moving your savings here?

the first is easy. bank-to-bank / bring cash / use a transfer facility...

The second should be avoided, if you can!
If you need 'start-up' funds, make sure you have a strategy in place to replenish the funds asap.


----------



## GumGardner (Aug 24, 2013)

Work have digs for me, I'm sure I'm just fretting. Nothing ever seems to go smoothly, I'm a bit of a drama queen!


----------



## imac (Oct 14, 2012)

My 2c.. for some things, its OK to use funds from back home, for others, live within your means here and do not touch any money you have back home to fund it...

Example, in my opinion:

A. Its perfectly acceptable to sell a car there, transfer the money, and use the proceeds to put a down payment on a car here...

B. Its perfectly unacceptable to take savings from there, transfer it here, and use it to fund the purchase of a "better" TV...

Everyone's case will be different. My approach is/was to use as little of the money I have back home as possible...


----------



## GumGardner (Aug 24, 2013)

That's really good advice!
I have a plan in my head and hoping I can stick to it, so after my contract I can go traveling again


----------



## voipkid (Aug 30, 2013)

Carrying on the theme from my initial post.

All major UAE Recruitment Agencies now have my CV and I have also started appying for roles in Dubai.

Can't remember if I had posted what exactly I do early? Anyway I work in IT Infrastructure Security Analysis and Project Management 14+ years

I will keep everyone posted how it goes


----------



## vildadalen (Jan 12, 2013)

I am now evaluating an offer in DXB and wonder if anyone of you has an excel sheet of the most common costs in DXB for a family of 4 or 5! If yes, it would be great to share so the newcomers like me can benefit of it. 

Thanks in advance


----------



## Dubai here i come! (Aug 7, 2013)

vildadalen said:


> I am now evaluating an offer in DXB and wonder if anyone of you has an excel sheet of the most common costs in DXB for a family of 4 or 5! If yes, it would be great to share so the newcomers like me can benefit of it.
> 
> Thanks in advance


same boat


----------



## blazeaway (Sep 28, 2011)

voipkid said:


> Hi Vantage thank you for clearing that up for me.
> 
> Again depending on type of role and how much clout you carry as an individual - when you say advance. Do you mean my employer would give me an advance for rent to cover a set period of rent and that this figure would be deducted per month from my monthly wage packet?


Depends who you work for, we will pay the rent then deduct it each month over the year or quarter. However the problem is if you leave before year end the company will deduct the arrears, hence the disappearing without notice!


----------



## blazeaway (Sep 28, 2011)

Dubai here i come! said:


> how long should it for a bank account.?


Once you have residence visa


----------



## blazeaway (Sep 28, 2011)

vantage said:


> One thing that lots of people told me when i arrived is that "it will take you a year to break even"
> 
> I had a spreadsheet on Excel. It was based on research before arriving, and updated weekly as i found out the real costs (some lower / some higher) and i kept tabs against this for a full 12 months. (i've shelved it now, after 14 months!)
> 
> ...


Great post, I have almost done my first year and have managed to save about a half of what I projected. My relocation costs were way more than I thought but starting to see benefits now, that said will have to renew lease etc all over again!


----------



## blazeaway (Sep 28, 2011)

voipkid said:


> Vantage would you say your outgoings were the norm or higher due to existing financial commitments based on the fact you have your family in Dubai and property back in the UK?
> 
> Sorry for cross posting from another thread where I gave a brief example of my situation. But in my context:
> 
> ...


You should do OK, I kept my house and mortgage in UK and, as I transferred to a branch office still had to pay NHI etc for first year. Still saved money each month but half what I had assumed. I do drink but don't smoke but travel most weeks so Dubai duty free is a boon. Eat out quite a lot but lease a car, essential here!


----------



## blazeaway (Sep 28, 2011)

GumGardner said:


> I have my savings in a basic UK current account with debit card and now I'm worrying about transferring it to my Dubai bank account when it's open.
> What are your thoughts please?


Keep money in UJ


----------



## vantage (May 10, 2012)

blazeaway said:


> Great post, I have almost done my first year and have managed to save about a half of what I projected. My relocation costs were way more than I thought but starting to see benefits now, that said will have to renew lease etc all over again!


Good effort! Got kids?


----------



## blazeaway (Sep 28, 2011)

vantage said:


> Good effort! Got kids?


Yes all grown up but one still living at home and being subsidised at 23! At least she looks after the house and cat!


----------



## voipkid (Aug 30, 2013)

blazeaway said:


> Depends who you work for, we will pay the rent then deduct it each month over the year or quarter. However the problem is if you leave before year end the company will deduct the arrears, hence the disappearing without notice!


Thanks Blazeaway - that would make life for me easier if my employer was to deduct my rent monthly or quately.


----------



## imac (Oct 14, 2012)

Most offers I have seen, they specifically call out an annual amount as housing, but its factored into monthly salary... that is, if the offer says the basic is 240k and housing allowance will be 120k per year, what that really means is, if you do not take an advance, what you get each month will be 20k basic salary + 10k housing... 30k total on your paycheck...

If you take a 6 month housing advance lets say, every six months you get 20k basic salary + 120k housing (140k total on your paycheck), and each month in between, you just get the 20k basic salary...

If you quit while having a balance... lets say you quit in the third month of a six month cycle, then you have to pay back the three months of housing that you are not entitled for...


----------

