Heaptalk, Jakarta — Preparing for the family’s financial future is one way to show love to loved ones. Maybank Indonesia revealed that financial management in Sharia manner can help people organize their finances to face various risks and protect their families.
According to Romy Buchari, Director of the Sharia Business Unit at Maybank Indonesia, Indonesian society tends to focus on accumulating funds and saving but forgets to consider self-protection and wealth in financial management. “Through Sharia financial management with its five main pillars, including Wealth Preservation, people now have access and convenience to various banking products that adhere to Sharia principles to maintain asset values and protect themselves and their families, not only in this world but even after we pass away. In this way, we can stabilize the family’s financial condition and better prepare the future for the family left behind,” Romy explained.
To better manage family finances, Maybank Indonesia outlined five tips to protect Sharia family finances:
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Effective and wise debt management
One of the main principles in Sharia financial management is to avoid unnecessary debt. By preparing effective debt management and ensuring the debt-to-income ratio does not exceed 30%, families can feel reassured and in control of their financial stability.
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Allocating income for emergency funds
As a form of anticipation and protection for the family, set aside a portion of the total monthly income into an emergency fund allocation. Ideally, people should have an emergency fund of 3-6 times the monthly routine expenditure before investing to prepare finances for unforeseen situations.
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Diversifying investment portfolios
When investing, the level of risk is always proportional to the growth of returns. Therefore, portfolio diversification is necessary. By placing investment funds into various different Sharia investment instruments, families can feel empowered and knowledgeable about their financial decisions.
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Preparing retirement funds for a prosperous old age
As funds are collected over a long time and only used later, find long-term Sharia investment instruments that suit your needs and risk profile to build a retirement fund. Instruments such as mutual funds, Sharia bonds/sukuk, and Sharia stocks will help achieve the needed retirement funds when the time comes.
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Choosing the proper life and health insurance
Health insurance can help keep finances stable when a family member is sick, while life insurance supports financial conditions if the family’s breadwinner passes away. Sharia insurance also offers many advantages, such as protection up to 100 years old and options to donate the sum insured, providing benefits now and in the future.
To help people manage their finances in a Sharia-compliant manner, Maybank Indonesia, through the Sharia Business Unit (USS), presents the first Maybank Shariah Wealth Management (MySWM) service in Indonesia. With comprehensive financial services, people can meet various financial needs at every phase of life’s journey through five paths of goodness: wealth creation, wealth accumulation, wealth preservation, wealth purification, and wealth distribution.
