Saving 25% of everything can help you survive challenging financial conditions


The world is going through challenging financial conditions; the economic growth is painstakingly slow, and the oil prices do not appear to rise soon, needless to say, both the governments and the people find themselves submerging in a quagmire and are desperate to find a solution, a way out of the turmoil.

Nima Abu Wardeh is one such person who is surrounded by the tough conditions. She used to present BBC World’s MEBR and is currently a blogger who likes to share her thoughts about the world around her.

She has quite recently crafted a survival strategy, which all of us can benefit from, let us go through it.

If you are not one of those people, who are always spending money carelessly, you probably fall into the category of individuals who save money to purchase a particular, luxurious product in the future. Both categories rarely ever get to the point of actually ‘saving’ money.

All the attractive deals saying ‘Buy now, pay later’, ‘Own it today, pay monthly’ have made us habitual of purchasing things which we cannot afford. This is the main reason why innumerable people all over the globe are in debt.

The IMF has totalled the global debt, the resulting amount, more than $152 trillion, is alarming – it is twice the size of the world’s economy, and it is still growing.

Trimming cost

As Ms Nima puts it, we can take hints about saving money from major corporations and governments, as everyone is trying to save. The best way to save money is by trimming away the back cost.

A significant amount of money needs to be saved so that it can help us in the future and adverse conditions. 25% is, thereof the perfect chunk of money you need to save from your earnings, or in other words, cut 25% off everything that you spend money on.

Top firms follow this rule – 25% off everything to survive the present and get prepared for the unknown future.


To get started with your own financial, strategic plan, the best way would be to sit down and write down five things that can be put in the 25% pot. Because we tend not to follow everything we say, select three things which you can stick to. They can be

  • Spend 25% less on eating out
  • Spend 25% less on movies and adventure parks
  • Spend 25% less on clothes and accessories

If you do not limit it to merely your financial plan, the 25% strategy can help you in re-thinking your whole life, for instance:

  • Spending 25% more time with loved ones
  • Spending 25% less time on social media channels
  • Spending 25% more on reading

The list goes on; the trick is to make your life better, financially and over-all. No one knows how the world’s economies are going to play; therefore you need to be prepared with sufficient savings to survive any situation.

The article was originally published in the UAE news website – The National.

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