Muslims should be rich. Why? Because Allah SWT recommends people to work hard, earn a living in His vast earth, courage to change for a better life, since Allah SWT does not change a person when he/she does not try to change.
In the Al-Qur’an Surah An-Nisa 9 mentioned that: Muslims do not leave their children in poor.
Our Prophet SAW said in a hadith which means: “Indeed, if you leave your beneficiaries with some wealth, is better than you leave them destitute, forcing them to beg from others. And you do not spend anything for your family, in the pursuit of Allah’s pleasure, except that you will be rewarded duly, even if it is only a mouthful of food that you feed your wife.” (Hadith narrated by Imam Bukhari and Muslim).
Proper financial management would be the key to managing personal or family finances. How can we manage our finances well?
The first thing we have to do of course is to EXAMINE our financial health. Assess our assets or valuable things that we have; Calculate our debt to be paid. Make notes in the book that you are dedicated to your finances. Suppose you own assets such as cash in your wallet this time, house, car, jewelry, saving, deposit, accounts receivable, etc. While debt is e.g. home loan, car loan, credit card, or loans to friends/family. Calculate all of its values. Which post is bigger? If your asset is greater than your debt means that your financial position is healthy, if otherwise then you have to reevaluate your expenses.
If you do not record your spending, start to note down your expenditures right now. After 1 month you will see if your spending exceeds your (family’s) monthly income or not. Do it every month, not only 1 month, as you can see your monthly average expenses at least in 6 months.
What percentage of your money that you can set aside as savings from your monthly income? Don’t forget to count and spend your zakat as well, either monthly or yearly.
Many financial planners will ask us to set GOALS for what our money will be used. Suppose you are planning to get married in 2 years, performing pilgrimage in year 2018, payoff credit card in full amount when it is due, or maybe you have to save money for paying your child’s university in 3 years, etc.
After you set goals then create BUDGETS. What actions are needed to achieve those goals? For example, your credit card debt this month is U.S. $ 200 it means that you have to set aside your money as much as $ 200 before your credit card is due. Automatic debit from your saving account to pay your credit cards perhaps is one of solutions to avoid interests or late charges that may occur if you forget to pay your credit cards on time.
IMPLEMENTATION is an action that you have to do after you have determined your goals and your budget. For instance, if you intend to go Hajj and already have funds for at least the down payment (if your country provides hajj savings in a bank), immediately deposit cash advance on your hajj savings before you use the money for something else. You need also to prepare monthly installment or any term/period that you have committed to complete your hajj funds.
Finally, EVALUATION after 6 months or 1 year is needed to find out whether your expenditures are in line with your financial plan and goals.
