Gulf NRI Nizar Ahmed & Financial Planning – PrognoAdvisor

Gulf NRI Nizar Ahmed & Financial Planning

NRIs who are in US or Europe are different from NRIs in Gulf. Most of those who go to US or Europe wish to settle there. So they apply for citizenship in those countries, spent most of their income there, buy property there and invest there. But majority of those who go to Gulf dream about returning home and settling in India. They send most of their income back to India, keep their money in Indian banks, invest in Indian financial products, join chit funds, build house in India, buy property in India and buy lot of gold.

Nizar Ahamed is in Dubai for last 12 years.  He is working in a construction company. He has 2 kids, a boy and a girl. His wife and kids stay with is parents in their old house. He has 3 brothers and 4 sisters.  During his child hood his family was in extreme poverty. Like anybody else he also dreamt about going to gulf to secure a good living for his parents and brothers. With the help of a few people his mother sent him to gulf. He was hard working. He got good salary. He repaid his family’s liabilities. He also ensured that his brothers also get jobs in gulf. He got all his sisters married. He married a girl from a poor background even though is parents wished to get him married to a rich family. He was particular about it because he felt it like telling the world that he is rich enough to take care of a family without getting any benefits from the girl’s family.

Whatever he earned so far, he spent for the family except that he bought a piece of land. He had some fixed deposits also. He now wants to build a house at his native. His plan is to build a 3000 square feet house by spending about Rs.1 crore.  He thinks that the house should erase the memory about their poverty from the minds of his relatives and neighbours. He wished that they respect him as a rich man. He is now 37 years old and he wish to return to his native when he reaches 45 years of age.  He says that he can live with his family at his native place comfortable with income of Rs.30000 per month.

He built the house by taking loans from banks in Dubai as well as from India. As the construction cost ran out of hands, he had to sell the land he bought a few years back. He was happy and felt like a king who won a big battle. His family moved to the new house. The household expenses increased as the family’s standard of living increased along with cost of maintaining the house. The loan repayments were high.  Altogether he had no money to save. Whenever he hears news about an accident or somebody losing job he gets a shiver.  He is worried about what will happen if he falls sick? What will happen if he loses his job?

Nizar Ahamed is an imaginary character and it was just a story. But many NRIs in gulf could identify themselves with Nizar Ahamed. Most of them go with empty hands to gulf and return with empty hands. Between that, they might have uplifted their siblings, built bungalow, gave donations to church or mosque or temple and showed posh and pomp every time they come for vacation. But they forget about their future or ignored it.

So it is important that NRIs should plan their financial future.  They should identify their future needs and plan their finances so as to meet those needs as and when it occurs. The first step to financial planning is to analyse your current financial situation and correct your cash flows so that you will be able to save as much as required to meet your future needs. Sign up with  and submit your information to get your financial diagnosis done. will run a complex algorithm based software program and show you how your future will unfold if you continue with your current financial situation.

Sanjeev Kumar Gopalakrishnan

Sanjeev Kumar G, an IBS Chennai Alumni, is a Certified Financial Planner (CFP) from India, since 2005. He has 22 years of experience and is an expert in various personal finance areas like portfolio construction, investment research, life insurance and financial planning.

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