The Japan Times - Dubai Investor Explains Dh50,000 Monthly Draw and Long-Term Strategy

Ilia Sheludiakov arrived in Dubai five years ago with a background in marketing and trading, and a conviction that the city held more opportunity than anywhere he had worked before. The Russian entrepreneur has since built a family estate agency company, developed a personal investment portfolio spanning ETFs and equities, and written his first book – Temporalism: Make Time Your Ally – a philosophical guide to treating time as a strategic force. The 30-something now splits his attention between the estate agency business, his investments and growing a media presence, guided by a belief that passive income is the surest path to financial independence.

My first job was in Moscow, as a marketing specialist. It was mostly supporting promotional events – exhibitions, organising things, working with suppliers. The salary was small.

In international terms, it was around $700 a month. Right now I'm mostly investing in real estate. I started as a real estate agent in Dubai, but now we have a family real estate company, and we're also investing in real estate ourselves.

After the marketing job, I had other positions connected to sales, but more specifically to trading – working as a trader within a company, not for myself. That's where I understood about investing, about shares; I did investment analysis and all those things. I also had a small amount of experience in real estate in Moscow.

But when I came to Dubai, I changed my field and industry because I saw a lot of potential here. It was a new industry and a new field for me, but by the time I understood it, I realised it's always about how to sell something. When I did marketing, it was about how to present the company – in real estate, you present the property.

And I had knowledge of investing, so I could understand the figures, analyse objects, and understand the value. Now I've been in Dubai for almost five years, and I've received a lot of knowledge in that time. It's not huge.

My salary depends on the money I need for living, so I can say how much I spend – around Dh50,000. That's enough for me for now. I'm talking about the money I spend on my life, not the money I invest.

In Dubai, I think it's a good amount – enough for all my daily necessities. There is also a part that I save for my personal investments. I always try to save a proper amount each month to put somewhere, because you always have to diversify your investments.

You have to put some amount in conservative assets – ETFs, shares – on a long-term platform where your money compounds over time. It's something that has to stay there, because you always have to leave some amount for the future. I also invest in real estate.

I like to diversify. I have some shares in big companies, but in ETFs you can put your money into worldwide economies, into specific countries or industries – it's the tool that helps you maximally diversify. One ETF can contain a lot of different companies, bonds, and industries.

I prefer this because it's the most conservative approach, but a portfolio can still have many different kinds of assets. I have some. I don't see the sense in small debts – taking on debt just to spend on your lifestyle is a bad idea.

But debt is good when you use it as an opportunity to make a big investment or to do some business that you're sure about. In real estate you can take a mortgage, or take a finished property and raise funds to invest in other objects. I have such debts, but I believe you have to consider debt as an opportunity to generate more money – not just to waste it on daily necessities.

To be honest, as a child I didn't think a lot about finances. I always tried to save something from birthday gifts, but it was hard to keep it for long – I would just spend it. My family is from a business background, so they knew how to manage money.

But when you're a child, it's very hard to think like an adult and to have the right mindset. I think it comes to you over the years. The older you get, the more knowledge you have.

And you have to spend a lot of money, get into some bad situations, understand you made wrong decisions – only then do you really learn how to manage it all. I have a lot of meetings, and I spend money on those. I often close the bill with friends or business partners, so I go to restaurants for dinners and lunches quite regularly.

In Dubai, all of this costs a lot. My main goal is to build financial independence that can grow in the future – a system that can generate passive income without my full participation. I like investments because it gives dividends, it compounds, it can work without you.

In business, you always have to be involved as the founder or manager. But in real estate or other assets, you can build a system that generates cash flow and compounds over time. That's what I want to create.

I also have different activities alongside the business – I've published a book, and I want to write another. I want to grow my media presence, maybe create a podcast or a YouTube channel. All of that takes time.

I don't want to focus all my attention on one activity that earns money. I want to diversify, and maybe those other activities will also generate cash flow in the future. But I want to do them first for something other than money.

T.Sasaki--JT