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UAE: Some expats are adopting cash-only spending, here’s why

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On April 11, 2025

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Despite trying various budgeting strategies, including spending tracking apps and the popular 50/30/20 method, Sheikha M still found herself consistently losing track of her finances.

Determined to make a change, she embraced the cash-only spending trend going around on social media. Here’s how it works: Individuals participating in the trend are cashing in all or a big part of their salaries to gain better control over their finances and understand their spending habits.

Sheikha started by withdrawing her entire salary and dividing it into different envelopes labeled for each essential category — groceries, utilities, entertainment, and savings. “It was very weird at first as I hadn’t used cash in long time,” she admitted.

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However, she quickly realised that seeing a significant portion of her salary in actual cash helped her see the value of each note. “It’s different from having it on my cards or digitally on my phone,” she said.

Sheikha admitted that she initially struggled with this new method. “Sometimes, something would come up midday, and what I was carrying wasn’t enough,” she explained. Additionally, she was surprised to find that some places only accepted card payments, making her cash-only approach challenging at times.

Despite these challenges, Sheikha found a silver lining. At the end of each month, she noticed that she often had cash left in her envelopes, a stark contrast to her previous habit of exhausting her salary by mid-month. This newfound ability to track her expenses more effectively led to a sense of accomplishment. “I felt the difference,” she remarked.

Another expat trying out the trend is Amir Khattab. Initially sceptical, the software engineer decided to cash out his salary and found out how using cash helped him resist the temptation of impulse purchases. “When I have cash in hand, I think twice before spending it,” Amir shared.

Just like how it was with Sheikha, he also faced some challenges due to unexpected expenses and online shopping. But overall, he found the cash system to be a valuable tool in managing his finances.

For Sara L., a primary teacher and mother of two, she decided to adopt a unique approach to managing her family’s finances by involving her children in the cash system. With a busy household and competing demands, she realised that teaching her kids about money management early on could set them up for future success. To do this, she allocated specific amounts of cash for family outings, groceries, and other essentials, creating a tangible way for her children to see how budgeting works.

“We sit down together each month to discuss our plans and set our budgets,” Sara explained. This collaborative process not only helps her manage expenses but also fosters open conversations about financial priorities. “It’s been a great lesson for them,” she said, noting that her kids now understand the value of money more than ever.

Experts emphasised that handling physical cash can create a tangible connection to one’s finances, making spending more deliberate. “Cashing out salaries can be an effective strategy for those who struggle with overspending,” explained financial adviser Dr Anya Patel. However, she also cautioned against completely abandoning digital payments, as they can offer convenience and security.

“Finding a balance is key,” Dr Patel advised. She suggested that individuals consider a hybrid approach: using cash for discretionary spending while maintaining digital payments for necessary expenses or emergencies. This way, they can enjoy the benefits of both methods, enhancing their financial awareness without losing the convenience that digital transactions provide.