DUBAI // Thousands of government employees today receive their salaries a week early but with Eid Al Fitr just days away, experts are warning people not to spend, spend, spend.

Last week government employees working in Abu Dhabi, Dubai, Ajman and Umm Al Quwain were told they would be paid on July 20 to allow them to prepare for the end of Ramadan.

But with longer to wait until their next pay cheque in August people are being advised to budget carefully.

“It’s too easy to think you have plenty of money and go out and spend it, especially when it’s a public holiday and spending in encouraged,” said Keren Bobker, a senior consultant at Holborn Assets.

“The issue is that the money runs out before the next payday, which could be five weeks away.”

It is crucial people do not treat the early payment of their salary as an added extra, she said.

“Don’t treat the salary payment as any kind of bonus and, before you go shopping, make sure you have worked out how much you need for essentials for the month of August,” she said.

Although overspending is a problem everywhere in the world, the UAE’s high temperatures mean many people tend to spend much of their time in malls during the summer months.

“The issue is compounded here as we have something of a ‘spending culture’ with so many shops and malls and fewer outdoor distractions in the hot summer months,” Ms Bobker said.

“I know of many people who are struggling to pay of large debts and this could take them years as so many pay just the minimum balance.

“On many occasions people use their credit cards to make up the shortfall in finances because very few people have overdrafts.

“The issue is not so much the using of a credit card to cover costs, but that the spending is not repaid after the next payday and so interest is payable, increasing the costs.”

The personal finance expert encouraged people to work out a budget and try to stick to it.

“Once you know what your fixed outgoings are, you can then work out how much you are able to spend for pleasure,” she said.

“If you are too tempted when you go out, take cash only and leave that credit card at home. I cannot stress how important it is to work out a budget and stick to it.”

For retailers, the last two weeks of Ramadan are traditionally significantly more busy, as people prepare to celebrate Eid with family and friends.

“This Ramadan has been interesting so far because we are slightly up compared with the first two weeks of the month last year,” said Ashish Panjabi, chief operating officer at electronics retailer Jacky’s.

“But we expect to see a 40 per cent increase in sales in the run-up to Eid as more tourists from Saudi Arabia and elsewhere in the GCC spend their holiday in the country,” he said.

“Early salary payments have been common in the past few years and we see people buying things like laptop computers, smartphones and tablets as gifts.”

Online shopping is also playing a larger role in people’s shopping habits this Ramadan.

“People really like the convenience to browsing our products online and then placing an order in the comfort of their own home,” said Sherif Rizwan, chief executive of ALshop.com.

“Most of our traffic has been late at night and we are already gearing up for the next few weeks and expect a 50 to 60 per cent increase in trade.”

Along with smartphones, cosmetics and perfumes were proving to be the most popular items.

“Our customers have also been requesting their purchases be gift wrapped and we expect that trend to continue in the run-up to Eid,” Mr Rizwan said.

nhanif@thenational.ae