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Financial Planning in Islam

All praises belong to Allah, the Entirely Merciful, the Most Exalted in Might.

The issue of financial planning has been relegated to the background in the lives of many Muslims, yet it is as important as every other aspects of our daily lives, as we will definitely be questioned about our wealth when we meet with Allah, Azza wajal.

It is reported that the prophet, peace be upon him, said,

“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)

Before we delve into Islamic aspect of financial planning, let’s quickly have a read of what financial planning is.

The term financial planning is an aspect of financial sector saddled with the responsibility of assisting clients in determining their financial goals, objectives, priorities and how to acquire the resources required to achieve them in an optimal, realistic and practical manner.

In Islam, financial planning is based on laid down rules and regulations of the shariah. It is creating, developing and the delivery of unique customer satisfying competitive products and services at a profit to organization and customer in the lights of Islamic values and principles.

The entire financial process involves assisting the client to determine his goals and priorities as well as the resources required for an optimum result based on the shariah. The shariah is highly concerned about financial planning due to its implication on the smallest unit of a society and the society at large.

Islam is a comprehensive, integrative and holistic religion that governs all aspects of life, major and minor, personal and social, spiritual and materialistic, and relates this worldly life to the Hereafter. This means that we need to practice Islam while we perform our business and economic activities.

In Islam, financial planning is not just merely a process of acquiring and accumulating wealth but it has a broad definition which relates to the concept of being a vicegerent on earth (khalifa). Hence we, as Muslims, are encouraged and urged to plan our finances skillfully  in order to bring about prosperity to the ummah, while not undermining the concept of tawakul and qadar.

Planning the finance is not necessarily clinging to the dunya as many Muslims misconceive. As a Muslim even though a person does not possesses any form of wealth, he still has to commit with financial planning process because either way, he would leave debt or wealth to the children to the trusted one, so the small business owners or salary earners must also plan their finance.

Finally, in the heart of the Muslim, the sources of his finance should be as pure and free of haraam dealings as the financial processes and goals. The intention to enrich the ummah and earn the pleasure of Allah should not be underestimated. This is because, financial planning is basically a discipline of wealth management that applies to the unique needs and concerns of respective individual, so the position of the sharia may contradict the conventional financial planning methodology at different levels.

Hence, the Muslim financial planner whose intentions has not been purified may find himself entangled in haraam dealings.

May Allah preserve our souls and grant us halaal earnings with which to assist the ummah and fulfil our obligations as vicegerents on earth. Aameen.


Haulat Oiza Ozigis – Umm Bilaal

Editor: Umm Naml

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