Despite trying out a variety of popular budgeting methods—from advanced spending tracker apps to the widely recommended 50/30/20 rule—UAE resident Sheikha M found herself consistently falling short of her financial goals.
Like many others grappling with modern-day money management, she decided to take a radical step: going cash-only.
Inspired by a growing trend on social media, Sheikha withdrew her entire monthly salary in cash and sorted it into envelopes labeled for groceries, utilities, entertainment, and savings. “It was very weird at first as I hadn’t used cash in a long time,” she admitted.
But seeing her full salary in tangible bills had a profound psychological effect. “It’s different from having it on my cards or digitally on my phone,” she explained.
Although the transition wasn’t without its hurdles—midday emergencies and cash-only limitations posed significant challenges—Sheikha said she began to see a real difference in her spending habits.
“At the end of the month, I still had cash left in my envelopes,” she said, a stark contrast to her prior pattern of running out of funds halfway through the month.
The newfound ability to track her expenses and watch her savings grow left her with a sense of accomplishment. “I felt the difference.”
Sheikha’s experience mirrors that of many others in the UAE who are experimenting with the old-school method of cash management to regain financial control.
Amir Khattab, a software engineer based in Dubai, was initially sceptical of the approach. But after cashing out his salary, he noticed a change in his purchasing decisions.
“When I have cash in hand, I think twice before spending it,” he noted. Like Sheikha, Amir encountered complications—particularly when making online purchases or handling surprise expenses—but overall, he praised the method as a valuable deterrent against impulse buying.
Meanwhile, Sara L., a primary school teacher and mother of two, took the trend a step further by involving her children in the budgeting process.
By assigning cash budgets for family needs such as outings and groceries, she created a hands-on learning experience for her kids.
“We sit down together each month to discuss our plans and set our budgets,” Sara said. “It’s been a great lesson for them,” she added, highlighting how her children have become more conscious of financial decisions.
Experts say that the tangible nature of cash creates a stronger emotional connection to spending. “Cashing out salaries can be an effective strategy for those who struggle with overspending,” said Dr Anya Patel, a financial adviser based in Abu Dhabi. However, she cautioned against a full transition away from digital payments.
“Finding a balance is key,” Dr Patel emphasized, recommending a hybrid strategy: using cash for everyday discretionary spending, while keeping digital options open for fixed payments or emergencies.
As the cash-only movement gains traction in the UAE, many residents are discovering that sometimes, old-fashioned solutions can offer fresh perspectives—and lasting financial discipline.