Financial goals for young expats have changed, even more so after the COVID-19 pandemic COVID-19 and the financial uncertainties that the pandemic triggered have contributed to changes in financial goals for people across the world. Dubai: Kerala, as a state, has one of the largest expatriate populations in India. In the Gulf region and in the UAE too, Malayalis account for one of the largest expat populations in residence. As per the Kerala Migration Survey 2018, there are 2.1 million Keralites who reside outside the county, a majority of whom are based in Gulf countries.
For many Kerala expats who fall in the boomers’ generation, and for previous generations too, building or buying a home in Kerala was a priority. Most planning in advance for retirement in their home state. Even with small salaries, many expats ensured that their houses back in Kerala were their ‘dream homes’. However, for later generations, financial priorities have changed, and not just for expats from Kerala. COVID-19 and the financial uncertainties that the pandemic triggered have also contributed to these changes.
We spoke to a section of young Malayali expats in the UAE to understand whether the age-old dream of having a home in Kerala is still a financial goal. Financial freedom to pursue dreams
Elma Bartholomew, 33, communications strategist said, “My decision to move to Dubai had a lot to do with the level of exposure this city offers, from getting to work with international brands and what we loved to call “glocal” businesses to interacting with people from all over the world. My brother retired at 31, and he motivated me to begin investing in a pension plan for myself.
“Building a home in Kerala was never my biggest priority as I am not considering settling there right away, and my parents had already invested in this for us. My brother retired at 31, and he motivated me to begin investing in a pension plan for myself. This is my last year of payments, and his advice has got me very close to financial freedom. I might not be as quick to retire because I love what I do, but I am quite happy to know that I will be able to enjoy a proper sabbatical in the future.”
Bartholomew’s goals are in line with what millennials and Gen Z’ers around the world are focused on – early financial freedom. What financial freedom is looks different depending on personal goals.
According to a report by Barclays, 38 per cent of millennials pointed to having disposable income at the end of each month as financial freedom. For others, paying off their bills in full felt like financial freedom. Nearly a third added that being able to treat themselves without worrying about their bank balance also would feel like financial freedom.
The same report showed that Gen Z felt that being able to stop full-time work and/or being on track for early retirement would mean financial freedom. “My long-term goal is to move into the art industry and I would love to spend a few years studying art in Europe. For me financial freedom is to be able to do this without worrying about having a steady paycheck…” For Barthelomew, being able to follow her passion is a key need in her journey towards financial freedom. She said, “My long-term goal is to move into the art industry and would love to spend a few years studying art in Europe. For me financial freedom is to be able to do this without worrying about having a steady paycheck, and to have enough of a backup to at least accommodate a student lifestyle. This is what I see as my sabbatical years.” Good investment option
Sunita*, 33, who has already started investments towards a house in Kerala, said, “Personally, I have invested in home and I think it’s a good investment. Current generation see homes as an asset and want to purchase one so they can grow their investment through monthly mortgage payments and benefit from future inflation and appreciation. Apart from that there are other options like fixed deposits and Insurance which I think will help in the long run.”
“Despite the growing popularity of products like mutual funds, traditional investments like fixed deposits has not lost their flavour with Malayalis, if you ask me. This popularity is easily understandable as they promote disciplined savings and assured returns despite any market conditions. Then comes insurance. Current generation take responsibility at a young age and we learn the importance […]
source Buying a home in Kerala: Is this still the dream for young Malayali expats in UAE?
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