It might sound too small to matter, but saving AED 100 monthly can turn into AED 100,000 with time, patience, and a bit of financial strategy.
Yes, really! With the magic of compound interest and smart planning, even the tiniest monthly saving habit can snowball into something big.
In this blog, let’s talk money and savings 101 to know exactly how to turn AED 100 a month into AED 100,000.
What can AED 100 do? It’s just a few dirhams a day, like a micro saving. Skip a daily coffee or short ride, and you can save AED 100. Do that every month and you’ll have AED 1,200 a year, AED 12,000 in 10 years (before interest). The key is consistency. Treat AED 100 as a fixed “bill” to your future self. For example, set up an automatic transfer of AED 100 each payday. That way you won’t miss it. Use budgeting tools or apps to spot small expenses to trim.
Here are some smart saving hacks to save AED 100 a month.
Also, read The 50:30:20 Rule of Managing Payments and Savings
Keeping cash in a regular savings account in the UAE yields only about 1.5% per year on average. At that rate, AED 100 saved every month for 25 years would still only be around AED 36,000. Also, UAE inflation is roughly 2%, so leaving money in low-rate accounts just preserves value rather than growing it. So it’s important to also invest or lock some savings into higher-yield options.
Compound interest is like a snowball. Your money earns interest, and then that interest earns interest, too. Over time, this “snowball effect” accelerates your savings. For instance, AED 100 saved each month at 5% interest for 20 years yields far more than the AED 24,000 of deposits alone, thanks to compounding. A quick trick: the Rule of 72 says 72 ÷ interest rate ≈ years to double your money. So at 7% interest, you double in about 10 years.
Stay invested for the long term. Get a big effect. Experts recommend a long horizon (like 5–10+ years) to let compounding work. Even modest rates (3–5%) can make a big difference over decades.
To see what AED 100 a month can do, let’s look at different return scenarios over about 25 years:
With 1.5% interest, AED 100/month grows to only about AED 36k in 25 years. Use a savings account for emergency cash, but don’t expect it to reach AED 100k.
Banks in the UAE offer ~3% on 1-year deposits. At 3%, AED 100/month becomes roughly AED 44k in 25 years. Ladder 1-year FDs (renew each year) for slightly higher guaranteed returns.
This UAE savings plan advertises up to 12% over 3 years (around 4% per year) and even short-term 11% plans. In practice, expect about 3–5%. Join National Bonds via their app and set up monthly contributions for steady growth.
Diversified funds often return ~5–7% historically. For example, a 5% growth in AED 100/month gives about AED 60k in 25 years. Use robo-advisors like Sarwa or StashAway to auto-invest in global ETFs. Reinvest dividends and gains to boost compounding.
Gold’s 25-year average return is ~10.2%. AED 100/month invested in gold over 25 years could exceed AED 100k (~AED 138k). Allocate a small part to gold (coins, jewelry, or ETFs) if you’re comfortable with price swings.
Payit helps you spend wisely and save with numerous deals. And now, it brings the chance to win AED 10,000 every month! How? Via Payit Dream Draw! And how to enter the draw? Just keep a minimum Monthly Average Balance (MAB) of AED 1,000 in the Payit wallet. Earn one entry to the raffle draw. And every extra 1k means one more entry! You can get a Payit gift voucher that you can redeem through the Payit wallet.
In short, plain savings and FDs alone won’t hit AED 100k from AED 100/month in 25 years. But higher returns from bonds, funds, or gold can. For example, an average return of 7–8% would get close to AED 100k in about 26–27 years.
The extra return and extra savings shave years off your goal. This is a long-term plan. Don’t panic over short-term market swings. Focus on the long horizon and let compounding do its job. Also, increase your speed to reach the goals with Payit now