Life Hacks – Money Management

By Humble Muslim
Money management is an important topic across the board and not surprisingly even qualifies as a business. In Islam, prudent financial management is something that is highly encouraged.
And [they are] those who, when they spend, do so not excessively or sparingly but are ever, between that, [justly] moderate
Al-Quran 25:67
The topic of wealth surfaces quite a number of times in the Quran as well as the hadiths. In Surah al-Kahf verse 46, the term wealth was placed along with offsprings which is another of the ‘gifts’ that mankind may be presented with and held accountable for on this earth.
Wealth and children are [but] adornment of the worldly life. But the enduring good deeds are better to your Lord for reward and better for [one’s] hope.
Al-Quran 18:46
Wealth has and always will be a source of test for Muslims and it will be one of the things that a Muslim will be held accountable for on the day of judgment.
“The son of Adam will not pass away from Allah until he is asked about five things: how he lived his life, and how he utilized his youth, with what means did he earn his wealth, how did he spend his wealth, and what did he do with his knowledge.”
Tirmidhi
Man will be questioned as to how he obtained his wealth as well as how he spent it. As such, money management in Islam is in fact very important.
A Muslim must be careful as to how he earn his wealth. Therefore he must select his occupation carefully to ensure it complies with the teachings of Islam. Occupations which deal with nonhalal sources of income must be avoided where possible unless there are no other available choices.
Money management is not just about income. Many people have a narrow-minded approach when it comes to money management. They only see the amount coming in but somehow ignore the amount being spent or how it is spent.
Imagine a bucket being filled with water. If the tap is gushing water but the bucket has a gaping hole, no matter how much water is being put in, water will keep draining. The bigger the hole, the more water is needed to keep the bucket full.
It is quite common in social gatherings that the topic of work gets brought up during small talk and a question that often crops up (depending on how close or how comfortable the conversers are) is “So how much you earning?”. That somehow becomes a gauge or measure of success and this has sadly been the case in our ever increasingly materialistic society.
No one asks “So how much is your household budget?” Or “What are your monthly expenses?”. Too boring or mundane
perhaps.
But the truth of the matter is stark. You may earn hundreds of thousands per month but if you spend exorbitantly, your net might not be much. And that is not wise money management.
In Islam, a Muslim is adviced to take a middle path. Not too stingy and not too extravagant.
We have to keep a mind on the future also and save up for emergency purposes. This enables us to not be a burden to others as well as be useful Muslims who are able to help others.
Abu Dawood (1564) narrated from Umm Salamah (may Allaah be pleased with him) that the Prophet (peace and blessings of Allaah be upon him) said:“That which reaches the level where zakaah is to be paid and its zakaah is paid, is not kanz (hoarded wealth).” Classed as hasan by al-Albaani in Saheeh Abi Dawood.
Abu Dawood
There are those who misconstrue Islamic values as those that reject wealth or world desires. The Islam religion has never ask that a Muslim abandon the world. Rather in Islam, a Muslim is encouraged to attain success in both the world and hereafter. This world is after all a ticket to the hereafter.
In fact, many companions of the Prophet himself are successful merchants as well as wealthy. Hence it is not proper and correct to shun wealth in the name of Islam. Wealth as do many of the other blessings that Allah has granted us is a form of rizq and trust and we should use them in a responsible way.
Money management is as such essential in Islam. We need to use the wealth we have wisely as what we do with it will be questioned by Allah. Hence it is our duty as Muslims to ensure that not only do we take care where our wealth comes from but also how we spend it and what we do with it.
Money Management Tips
1.Ask yourself what is your source of wealth
2.How do you spend it?
3.Create a list of Needs versus Wants
4.Scrutinise the list and categorise those as essentials versus those as not necessary
5.Streamline your finances by weeding out unnecessary expenses
6.Now look at how you shop for necessities
7.Are you getting them at the best deals?
8.Have you considered and compared prices with online retailers such as amazon and the likes?
9.Have you set aside a sum for zakat?
Courtesy: www.humblemuslim.com/life-hacks-money-management
Source: Fraser Health media