Financial freedom has different meanings for different people. For some, it is debt-free living, while for others, it is gaining security and flexibility.
To support you, we asked our specialists at Salama to share practical tips that could empower your financial journey.
So, why does financial freedom matter?
Financial freedom comes with numerous benefits, spanning from financial to personal well-being. It allows you to live without the weight of financial stress. Abdul Qadir, Senior Manager, Finance and Accounts at Salama shares:
“Freedom from financial stress lets you focus, take smart risks, and stay productive. With diverse income and the right protection, you gain the peace of mind to perform at your best.”
Achieving financial freedom also means making your money work for you. As Mark Barlow, Head of Family and Health Takaful Operations explains:
“You spend so much time working hard to earn your money—so make sure it works just as hard for you. Money sitting in the bank doesn’t grow significantly over time. That is why it is important to make sound investment decisions—by educating yourself or seeking financial advice from someone you trust.”
Start with a strong foundation- Financial planning and budgeting
Just like in life, having a strong financial foundation based on strategic planning and realistic budgeting will help you navigate your financial journey with confidence.
Financial planning is the process of managing your financial resources to meet your goals. Mark highlights the importance of early financial education as:
“Financial literacy begins at school. I firmly believe that as part of the school curriculum, young adults should learn and understand financial literacy, budgetary planning, how the markets work, and the different investment decisions you can make.” Gaining financial responsibility early empowers individuals to make smarter decisions.
Equally essential is to have clarity of your finances and creating a budget that works for you. Madalina Robu, Manager, Customer Service at Salama shares:
“Budgeting isn’t about restriction—it’s about clarity. By tracking what comes in and goes out, you can plan better, avoid unnecessary spending, and make smarter financial decisions.”
Learn more about planning your finances here: financial planning and wealth management.
Why is life insurance considered the core of financial security?
Many consider life insurance as a luxury instead of a necessity. As Abdul Qadir shares:
“Life insurance offers peace of mind in uncertain times, helping you stay focused, take calculated risks, and remain productive.”
While choosing a coverage, always base it on your risk appetite, financial goals, and overall financial situation. As Suraj Shetty, Manager, Plan Holder Services at Salama, explains:
“Clarity is key with life insurance. Term plans offer pure protection, while whole-of-life combines coverage with investment. With investment-based life insurance, funds can perform well or underperform based on external factors. So, it makes the timing of cancellation important. Choose a plan that aligns with your financial goals and track your investments regularly for a secure future.”
Additionally, Mark highlights:
“Life insurance is not just protection for your dependents but also a way to manage any debts you may have in case of any life-changing events.” Thus, having life insurance along with other mandatory covers can create a robust safety net.
Explore more about the benefits of life insurance /Family Takaful.
Investing with confidence
Once you have done the groundwork, it’s time to explore investing opportunities. Remember, there is no one-size-fits-all investing approach. As Mark emphasizes:
“Diversification is key. Having a balanced portfolio of investments, including shares, property, cash, and bonds ensures that you are not putting your eggs all in one basket should a downturn happen.”
Furthermore, while investing, it is integral to consider your risk appetite. As Suraj explains:
“Choose investment funds based on your risk appetite—aggressive, moderate, or conservative. Aggressive funds carry higher risk with exposure to volatile funds, moderate funds balance aggressive and conservative, blending stocks and bonds, and conservative options focus on lower-risk assets like bonds or Sukuk. Always align your choice with your financial goals and diversify your portfolio.”
Finally, Abdul Qadir reminds us:
“You must be patient and disciplined while investing. Don’t jump into trades impulsively—wait for the right opportunity. Balance is key.”
Explore Salama’s different savings and investment options.
Conclusion
Remember, financial freedom isn’t attainable overnight. It is a result of consistency, informed decisions, and long-term thinking. With the right mix of skills, planning, protection, and investment, you can confidently move toward a financially secure and stress-free future.
