The coronavirus pandemic has a profound impression on each side of life. At Al Salam Bank, we’re dedicated to helping our purchasers and the broader neighborhood. These are difficult instances, however in addition they current alternatives to be taught as we go ahead. With that in thoughts, we want to share quite a lot of necessary short-term and long-term private monetary pointers to assist in getting ready for the long run.
Prioritise needs over wants
Desires aren’t the identical as wants. Differentiating between the 2 is a important side of private monetary administration. One should prioritise necessary bills resembling housing, schooling and emergency financial savings, over needs resembling leisure, consuming out, or shopping for new devices. Nevertheless, that isn’t to be mistaken with an outright halt of spending on stuff you want. Put aside a share of your month-to-month revenue as ‘fun money’, to spend responsibly on stuff you get pleasure from. For increased spend objects or experiences, financial savings for a number of months is the advisable route.
One of the necessary issues to recollect in any troublesome time is to not panic. Panic results in rash choice making – and relating to planning private funds, having a transparent head is crucial.
In keeping with the Central Bank of Bahrain’s Monetary Stability Report, Bahrain’s banking system is ready to operate prudently, effectively and with out interruption, offering monetary providers constantly even within the face of adversarial shocks. At Al Salam Bank, our foremost precedence is to guard your monetary pursuits. We’ll proceed to safeguard clients’ accounts and supply uninterrupted entry to our whole suite of services.
Throughout these testing instances, we’ve to behave sensible as a neighborhood. Our authorities is working laborious to make sure the security and wellbeing of each citizen and resident. As per its directives, bodily contact must be minimised. Each time potential, go for on-line platforms to finish your purchases. Should you’re paying on-line together with your Al Salam Bank card, strong safety measures have been put in place to guard you together with a 3D safety characteristic from Visa Worldwide which is constructed into all our debit, credit score, and pay as you go playing cards.
If a go to to the shop is important, plan forward to minimise bodily interplay. Al Salam Bank’s contactless playing cards assist you to to remain secure when paying in-store. In all circumstances, guarantee strict adherence to social distancing necessities.
Native SMEs have been hit the toughest throughout this pandemic. The value they carry to our kingdom’s economic system is immense. Al Salam Bank proudly serves native SMEs and companies by offering revolutionary and diversified banking options to help development aspirations and help in overcoming challenges.
Additional, the bank unveiled in mid-March a spread of initiatives that included an computerized enhance of 10 per cent on credit score limits for bank cards and overdraft services and deferred instalments for a interval of six months to resident firms in Bahrain no further revenue and processing charges as per the directive of the Central Bank of Bahrain.
We encourage the neighborhood to point out their help by purchasing at native SMEs at any time when potential. Small actions by every one in every of us can yield substantial advantages.
Whereas Al Salam Bank branches stay open to serve your banking wants, we extremely encourage our purchasers to make use of our e-banking channels as a substitute. It’s the most secure and most handy approach to bank throughout this pandemic.
Past conventional e-banking channels resembling on-line banking web sites and cellular functions, we lately launched our digital department to allow our clients to bank seamlessly by way of video calls with our customer support brokers. Moreover, we can be found on WhatsApp to reply your queries and attend to your banking requests. If you’re not but a buyer of Al Salam Bank, you should use our digital onboarding utility to open accounts with us in a matter of minutes and start experiencing our full vary of e-banking channels.
Construct an emergency fund
Life is unpredictable. Lots of people are fearful concerning the potential of going through monetary hardship on account of sickness, unemployment, or main surprising bills. Having an emergency fund contributes to your peace of thoughts and gives a security internet in instances of monetary hardship. You may speed up increase your emergency fund by utilising funds saved from the CBB-directed six-month instalment deferral. Most monetary specialists agree that emergency funds must be enough to cowl three to 6 months of bills.
Nevertheless, your emergency fund’s cash doesn’t have to sit down idle. It is strongly recommended that you simply make investments financial savings, or the deferred instalment quantities from the current initiatives mandated by the CBB, in low-risk merchandise resembling Al Salam Bank’s Danat financial savings scheme, which is very liquid and safe while providing you an opportunity to win life-changing prizes. Alternatively, funds will also be invested in Al Salam Bank’s Wakala deposits, which provide enticing charges of return and versatile tenors.
Make sensible long-term investments
The pandemic and its results function a reminder that saving in your and your kids’s futures is a precedence. We advocate investing not less than 10laptop of your month-to-month revenue in direction of assembly necessary targets. Al Salam Bank’s Wakala Jawhar scheme affords enticing revenue charges and permits month-to-month mounted quantity contributions over time in direction of life targets resembling your kids’s schooling, journey, shopping for your dream house, and so forth. The scheme has the additional advantage of free life Takaful protection, which covers eventualities resembling accident, damage or dying.
Pay again costly financing
Sure financing services, resembling excellent bank card balances, can carry a big value over the long term on account of their comparatively excessive financing value. Settlement of pricey bank card balances must be prioritised alongside another financing facility with excessive revenue charges. Al Salam Bank affords purchasers and potential purchasers aggressive charges for the refinancing of current services.
Every of us has a singular set of private circumstances that dictate how we spend, save, and make investments. However no matter your circumstances, and no matter challenges you face, this grave second in world historical past is a time for reflection and planning. That is the time to get the home so as, deal with priorities and plan for a greater tomorrow.
Mr Buhijji is Al Salam Bank-Bahrain’s head of retail banking