Wealth and finance are means in ensuring comfort and survivability in this world. The worldly life must be embraced with full etiquette and responsibility in achieving the goals of the Hereafter. Therefore, good wealth and financial management can ensure one’s survivability in having a family, societal living, as well as attaining blessings and mercy in this life. In addition to the worldly needs, the ultimate goal to be achieved is definitely success in the Hereafter that is eternal. Hence, financial management with prudence and moderation can be outlined as follows:

First: Setting financial goals
Setting financial goals will create a financial flow that is structured and well-organized without interrupting the existing financial resources. This will prevent any wastage, thereby regulating the spending so as to not become excessive and spending on unnecessary items. Allah mentions in verse 27 of surah al-Isra’ (which means):

“Indeed, the wasteful are brothers of the devils, and ever has Satan been to his Lord ungrateful.” [Al-Quran, Surah al-Isra’, verse 27].

Second: Enhancing financial management knowledge
Various forms of information can be obtained from government and private financial management agencies. Moreover, these agencies also offer seminars and courses in debt and financial management in the effort to educate the community. Let us avoid feeling shy or ashamed from learning the knowledge of financial management that would be beneficial to ourselves and our family members. Hence, society must take early and pro-active measures in attaining the knowledge of financial management. Let us continue our efforts in enhancing our knowledge in financial management, which in the end will aid us in managing our finances properly.

Third: Managing debt wisely
Every individual will not escape from incurring debts such as home financing, car loan, and others. Therefore, let us remain determined in paying off all of our debts for they will not only become a burden in this world but also in the Hereafter. Narrated Abu Hurayrah: Rasulullah said (which means):

“Procrastination (delay) in paying debts by a wealthy man is injustice.” [al-Bukhari]

Fourth: Getting the family members involved in financial management.
Let us educate our children to save up their extra pocket money early on while they are still schooling and train them to only spend on things that are necessary. At the same time, share with our spouses and family members regarding our debts. Allah mentions in verse 47 of Surah Yusuf:

“[Joseph] said, “You will plant for seven years consecutively; and what you harvest leave in its spikes, except a little from which you will eat.”” [Al-Quran, Surah Yusuf, verse 47].

Islam advocates and encourages its adherents to live moderately with their expenditure. This is so that the Muslim ummah will not get entangled in an extreme debt crisis, uncontrolled credit card usage, and lavish and wasteful attitude. The Muslim ummah is advised to spend according to its necessity and capability, and avoid purchasing items that are beyond its means. Let us make price comparison before purchasing an item so that we will able to get the most affordable price, thereby saving our expenses. Let us prioritize in eating together as a family, eating more frequent at home as it will save our expenditures and strengthen the family relationship, spending more quality time together at home. Islam promotes moderation and prudence in managing financial resources. It was narrated from Abu ad-Darda’ that Rasulullah said (which means):

“One of the signs of man’s fiqh (true understanding of Islam) is his compassion towards himself by adopting a simple life.” [Narrated by Ahmad].

In another hadith narrated by Hudhayfah, Rasulullah said (which means):

“Excellent indeed is moderation in affluence. Excellent indeed is moderation in poverty. Excellent indeed is moderation in worship.” [Narrated by al-Bazzaar].

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