Islamic financial planning is an essential component of wealth mastery. The business performance highly depends on Islamic practice as Islam is a comprehensive, integrative and holistic religion that governs all aspects of life. It is a religion that focuses on major and minor life issues. It cares for personal, social, spiritual and materialistic subjects. Islam relates this worldly life to the Hereafter.
Islam also encourages Muslims to spend their money carefully. There is no reason to spend it too much but they should at least cover the basic necessities of their families. In Islam, if a husband has money but doesn’t want to spend on his wife or children, she has the right to ask for a divorce.
It is especially vital for every Muslim to plan his finances as it will secure him and his family’s well-being. Planning for death should be taken into account while planning finances. A Muslim should prepare himself for the next world as if he is dying tomorrow. This does not mean to forget his world; A Muslim should work to improve all his living as if he is living forever. With all in mind, it is vital to master the techniques of building a strong financial foundation.
Financial Planning is practically a discipline of wealth management that applies to the unique needs and concerns of each individual. As a Muslim, one should care about financial planning, as after death it is possible that he will leave debts or children to the trusted one. Starters, who manage their expenses, save and invest 10% – 20% of their pre-tax income. In an ideal situation, this could be achieved by investing in a pension scheme with the employer. This should become a habit because it is less likely to find oneself in financial difficulties later in life if dealt with financial planning earlier in the career. This will also ensure that no problems in the family will arise due to financial issues.
It is essential to discuss finances with the spouse. They should know about debts and net worth of their partner. Knowing family financial situation will enable them to understand the stress, and both spouses should be co-signers of the long-term plan and decision in order to become wealthy Muslims. It is also important to review and adjust finances with the spouse constantly, as well as discuss new options of investment. Many Muslims lifestyle constitutes of a lot of work and no play which is detrimental to their health and wealth. Only working routine is unhealthy and detains people from making necessary decisions to become wealthy Muslims. Needless to say that if one continues implementing their investment program, it’s important to monitor their portfolio on an ongoing basis and ensure it is appropriate.
Islam does not tolerate selective concentration of wealth. To prevent it, Islam restricts cumulative exploitation of resources, thereby prohibiting the concept of interest in finance. Islam further prohibits any kind of exploitation through tricks to create unnatural inflation in the market. This means that Muslims aren’t allowed to scam people in exchange of money or other materials.
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