My Dubai Salary: ‘I saved 70% of my Dh35,000 monthly income to retire at 33’

Sebastien Aguilar is a familiar name among personal finance enthusiasts in the UAE. He heads the non-profit community SimplyFI Index Investing and Financial Independence Facebook group, which focuses on financial independence, passive investing and personal finance education.

The Belgian national, 40, lived and worked in the UAE from 2011 until 2018 as a consultant in energy management. He achieved financial independence at the age of 33 and lives off the profits from his investments.

Mr Aguilar saved a six-figure dollar amount to retire early.

“The amount needed for healthy and happy financial independence is a lot lower than most people imagine. You don’t need millions,” he says.

“And this is because once you control your finances, you can live happily with modest expenses. And this, combined with a very effective investing strategy like low-cost global index investing, makes it so that you don’t need a very large portfolio.”

People following the FIRE (Financial Independence, Retire Early) movement usually withdraw up to 4 per cent of their investment portfolio’s value annually without depleting it over a 30-year retirement. This strategy requires aggressive saving and investing to build a large asset base to support passive income, enabling early retirement.

“Since we stopped earning and started withdrawing from our portfolio in 2018, it has grown in size significantly,” he says.

“Our financial independence and early retirement plan were designed to sustain the worst market conditions [like the Great Depression of the 1930s]. Since the markets did better than the worst-case scenario, we’re in a better financial position today compared to 2018.”

Today, Mr Aguilar lives in Belgium, where he and his wife homeschool their children.

He has a master’s degree in construction engineering from the Catholic University of Louvain in Belgium and a master’s in sustainable energy technologies from Southampton University in the UK.

What was your first job and salary?

I arrived in the UAE in 2011, with an internship at FuGu Energy on a monthly salary of Dh5,000 ($1,361 today) plus accommodation and a car, so [worth] about Dh8,000 in total.

What do you do now?

I am back in Belgium, where I am mostly a dad, homeschooling my two boys with my wife. I am also the chairman of SimplyFI, a free Facebook group in the UAE, and I run a similar community in Belgium called Fire Belgium.

Do you manage to save?

Not anymore, as I don’t have an income. But I used to save 70 per cent of my Dh35,000 monthly income in 2016 to 2018 when I was at the peak of my career.

What asset classes do you invest in?

I have a simple portfolio of two exchange-traded funds: one global stock index fund and one global bond index fund. I also have gold [and] I am in the withdrawal phase for better portfolio stability.

Have you bought property anywhere?

No, I rent. But my rent and all my expenses are paid by my portfolio. Renting gives me great flexibility. We might buy a house in the future.

Do you have any debt?

No. Zero debt.

Have you ever inherited money?

When I was 16, I got some money from my godmother. I used it to pay for part of my studies abroad, in the US and UK.

Growing up, were you taught to handle your finances?

I was only taught to save money. In fact, money has mostly been a taboo topic in my family, often cited as the cause of many of the problems in the world.

It’s only later that I discovered that money and investing have the power to buy back time.

What are your major monthly expenses?

Rent, food and travel. We travel a lot with my family.

How do you budget every month?

I used to track all my expenses from 2011 to 2012. It’s what allowed me to take control of my finances. I was very tight on money, so I had no choice. In fact, this is what led me to learn about do-it-yourself index investing. It has completely changed my life.

Do you worry about money?

I reached financial independence at the age of 33, in 2018. I have mostly solved [my] money problems. But it’s true that sometimes we wonder what our lives would have been if we had continued working and earning high salaries.

Do you have an emergency fund?

Yes. I always have easily accessible money for emergencies.

What are your best money-saving hacks?

It’s hard to say. We’ve become quite efficient with how we spend our money. For sure, when I was in the UAE, the biggest hack was to keep a simple, happy life. Happiness doesn’t cost much. Ego costs a lot. So, don’t fall for the expensive ego games (big house, big cars, fancy trips) everyone else is playing. Buy freedom instead.

What are your financial goals?

Right now, I don’t really have any.

What is your idea of financial freedom?

Mostly what I have: the ability to do what I want, when I want and with whom I want. Recently, we went to a farm with my boys and they discovered horseback riding. Right now, I’m sitting in a Moroccan restaurant while my kids are playing with their friends. I don’t have to worry about going to work and getting paid. We’re really blessed.

How did you achieve it?

Everything through a simple portfolio of index ETFs, that’s where I invested everything. Today, I live from the profits. And the portfolio keeps growing despite spending a chunk of it every year.

What are your tips to achieve financial independence?

1. Track your expenses for at least three months (also include annual expenses). This helps to have full awareness of personal finance.

2. Based on that, plug the money holes: cut useless expenses and optimise the rest.

3. Learn to invest in index ETFs. It’s simple, cheap and performs much better than bank funds. Once it’s in place, it takes five minutes per month to manage.

4. Join a community of like-minded people. In the Middle East, one such group is the SimplyFI Facebook group.

5. Find ways to increase your income (through employment, side hustles or entrepreneurship).

6. Simplify and automate your finances as much as possible.

7. When your portfolio can cover your living expenses, you’re financially free.

Any tips for people who started investing late?

It’s never too late to start investing. My mom is 70 and she recently started. It makes her retirement much more comfortable. So, if you’ve just started, keep going. If you haven’t yet, then learn quickly and start as soon as possible. The earlier the better. And tell your kids and family members.

Look up information on “index investing” and “financial independence”. Avoid active investing strategies. They cost much more time and money. Listen to podcasts and watch YouTube educational videos on index investing. Download the free Getting Started Guide for index investing in the UAE on the SimplyFI.org website or Facebook group. It’s everything we know super-condensed.

Do you want to be featured in My Salary, a weekly column that explores how people around the world manage their earnings? Write to pf@thenationalnews.com to share your story

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China’s MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

MATCH INFO

Newcastle United 1 (Carroll 82′)

Leicester City 2 (Maddison 55′, Tielemans 72′)

Man of the match James Maddison (Leicester)

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TEACHERS’ PAY – WHAT YOU NEED TO KNOW

Pay varies significantly depending on the school, its rating and the curriculum. Here’s a rough guide as of January 2021:

– top end schools tend to pay Dh16,000-17,000 a month – plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated ‘outstanding’ or ‘very good’, followed by American schools

– average salary across curriculums and skill levels is about Dh10,000, recruiters say

– it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance

– some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs

– maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills

– at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month

– in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues

Sholto Byrnes on Myanmar politicsGlobal Fungi Facts

• Scientists estimate there could be as many as 3 million fungal species globally
• Only about 160,000 have been officially described leaving around 90% undiscovered
• Fungi account for roughly 90% of Earth’s unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet’s topsoil

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

WHAT IS A BLACK HOLE?

1. Black holes are objects whose gravity is so strong not even light can escape their pull

2. They can be created when massive stars collapse under their own weight

3. Large black holes can also be formed when smaller ones collide and merge

4. The biggest black holes lurk at the centre of many galaxies, including our own

5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed

if you go

The flights

Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.

The hotel

Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.

The tour

Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg

STAGE%201%20RESULTS

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More from Neighbourhood Watch:

War

Director: Siddharth Anand

Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor

Rating: Two out of five stars

MATCH INFO

Euro 2020 qualifier

Russia v Scotland, Thursday, 10.45pm (UAE)

TV: Match on BeIN Sports

Tips to stay safe during hot weather
Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
UAE currency: the story behind the money in your pocketsHow to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

UAE currency: the story behind the money in your pocketsMs Yang’s top tips for parents new to the UAE

Join parent networks
Look beyond school fees
Keep an open mind

Keane on …

Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it – they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”

Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season – which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”

Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”

How to register as a donor

1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention

2) There are about 11,000 patients in the country in need of organ transplants

3) People must be over 21. Emiratis and residents can register.

4) The campaign uses the hashtag #donate_hope

Dates for the diary

To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:

September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
February 2, 2018 Bodytree will host its 4th annual yoga market.

Tips to avoid getting scammed

1) Beware of cheques presented late on Thursday

2) Visit an RTA centre to change registration only after receiving payment

3) Be aware of people asking to test drive the car alone

4) Try not to close the sale at night

5) Don’t be rushed into a sale

6) Call 901 if you see any suspicious behaviour

The specs: 2018 Maserati Levante S

Price, base / as tested: Dh409,000 / Dh467,000

Engine: 3.0-litre V6

Transmission: Eight-speed automatic

Power: 430hp @ 5,750rpm

Torque: 580Nm @ 4,500rpm

Fuel economy, combined: 10.9L / 100km

Best Academy: Ajax and Benfica

Best Agent: Jorge Mendes

Best Club : Liverpool

Best Coach: Jurgen Klopp (Liverpool)

Best Goalkeeper: Alisson Becker

Best Men’s Player: Cristiano Ronaldo

Best Partnership of the Year Award by SportBusiness: Manchester City and SAP

Best Referee: Stephanie Frappart

Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)

Best Sporting Director: Andrea Berta (Atletico Madrid)

Best Women’s Player: Lucy Bronze

Best Young Arab Player: Achraf Hakimi

Kooora – Best Arab Club: Al Hilal (Saudi Arabia)

Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)

Player Career Award: Miralem Pjanic and Ryan Giggs

Emergency phone numbers in the UAE

Estijaba – 8001717 – number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

Emirates airline – 600555555

Etihad Airways – 600555666

Ambulance – 998

Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

My Dubai Salary: ‘I saved 70% of my Dh35,000 monthly income to retire at 33’

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