As a Muslim you seemto be confused about what an Islamic personal finance is all about!
Islamic personal finance is just as the conventional personal financing. However, the Islamic personal financing has taken a hedge higher than the convention one with its unique characteristic which is the concept of shari'ah compliant.
Hence, Islamic personal finance is the term that covers managing your money, saving and investing in a nature that is in line with the sheri'ah. It encompasses budgeting, banking, insurance, investment, retirement planning, tax, estate planning,religious rites(Hajj,Zakat, etc.) and given alms to the needy.
Furthermore,Islamic personal finance is about meeting your personal financial goals, whether it's having enough for short term needs, long term needs, or even religious needs. It all depends on your income, expenses, living requirements, and individual goals and desires. And coming up with a plan to fulfill those needs within your financial constraints. But to make the most of your income and savings it's very important to be an Islamic financial literate, so you can be able to distinguish between Halāl and Harām financing and make savvy decisions that are inline with the sheri'ah.
In Islam, Muslims are encouraged to plan effectively for the future as prescribed in the Glorious Qur'an in Verse 18 of Surah Al Hashr: “ _O you who have believed, fear Allah. And let every soul look to what it has put forth for tomorrow – and fear Allah. Indeed, Allah is acquainted with what you do_ .”
The noble Prophet of Islam, Muhammad (Peace be upon him) also encouraged Muslims to prepare for the future: _“A Muslim should prepare himself for the next world as if he is going to die tomorrow, but at the same time work hard to improve all his worldly comforts as if he is going to live forever_ ".
Therefore, financial planning that is sheri'ah compliant is highly essential for Muslims in their daily lives which will help in both, efficiently allocating funds where necessary as well as providing them with ease in knowing that the Sheri'ah guidelines are met.
*Written by Thanni Mustakeem A. MMT(Nubia).*
1St of Ramadān 1440AH.
6th of May 2019.
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