Financial freedom may seem like an impossible goal for many South Africans.– especially now when the economy is recovering from the brutal effects of Covid-19 and spare cash for savings is hard to come by.
The good news is that every cent really does count, and even the smallest amount saved or invested today can help bring that “impossible” goal closer, according to Ameen Hassen, Head: Shari’ah Banking at Standard Bank.
“The key is to begin immediately, to keep it up consistently, and not to postpone the steps you need to take to a future point in time,” he says.
In fact, one of the biggest money management mistakes South Africans tend to make is to wait for a more convenient time to start working toward the goal of financial freedom. That time may never come.
“No matter how small a person’s income, there is only one perfect time to start putting your plans into action, and that time is today,” says Hassen.
Almost as important as the timing is the question of where to invest.
“Where to invest is a particularly crucial issue for South Africans who care about the getting their return on investment,” he says. “This is one of the attributes that make Shari’ah banking, so attractive – not only to Muslims, but to anyone who wishes to bank differently.”
Flexibility is a key characteristic of modern Shari’ah products, such as Standard Bank’s recently launched Shari’ah Personal Call Account.
“With no monthly fees and immediate access to your money with zero penalties, this is the easiest way to save and earn competitive profits in a Shari’ah-compliant manner,” says Hassen.
Shari’ah Personal Call Account holders are free to save what they can, when they can, accessing their money whenever they need it. The minimum balance is R50 and there is no maximum balance, so there is no need to move to another product when the balance grows.
Balances over R100 earn a competitive share of profit, which is calculated on the account holder’s daily balance and paid monthly.
According to Hassen, Mudharaba is a Shari’ah structure where the customer provides the capital in the form of a deposit and the bank provides management and entrepreneurial skills. The bank will manage the capital by investing it in Shari’ah-compliant assets or investments.
“The strong desire to save and invest is becoming increasingly important to a growing number of individuals and organisations, and products such as the Shari’ah Personal Call Account are responding to that need, while also bringing that goal of financial freedom ever closer.”
With growth and flexibility, comes financial freedom. The key is to begin immediately.