Islamic Financial planning is essential, as in every journey you need to have a road map to be sure that you get to your destination, with your financial well-being you need to have a map to make sure that you get where you want to go, which is becoming a wealthy Muslim inheriting Jannah. This will be your GPS on your way to great wealth and Jannah inshaAllah. For each of the stages of your life design a map based on the needs of that stage. By imparting this knowledge to your children you will ensure they are on the right road to financial success and wealth mastery.
‘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.’ (Narrated by Al-Dailami)
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. Muslims are encourage planning for their life and put efforts to achieve the goal setting then ask help from Allah. The final stage is tawakal for what the result and takes it as the destiny bestows by Allah.
Financial Planning is basically a discipline of wealth management that applies to the unique needs and concerns of respective individual. 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 he would leaves debt or children to the trusted one. For starters, manage your expenses to save and invest 10% – 20% of your pre-tax income. Ideally this can be achieved by investing in your pension scheme with your employer. The sooner you start this habit, the less likely you will find yourself in financial difficulties later in life when it is harder to make up for lost time.
While creating your financial plan, plan for your death. Be prepared for your death, have your affairs in order, share with your family how your estate should be divided and write up a will. Death is inevitable, it is better to be prepared for it than not. As you begin to establish a career, family and network of friends, life will seem to run in a vicious cycle. This underscores the importance of managing your finances and your long-term goals.It is of utmost importance to master the techniques of building a strong financial foundation to become a wealthy Muslim inheriting Jannah and attaining peace of mind.
Discuss your finances with your spouse. Let them know if you are in debt and your net worth. This will show your trust in them and will also enable them to understand your stress. Both of you must be co-signers of your long-term plan and decision to become wealthy Muslims. Review and adjust your finances with your spouse regularly, discussing your options for investment and taking their opinions about investment. This will mitigate risk between the two of you and reduce the risk of impulsive investments, which can often be bankrupting. Unfortunately too many of us fail to achieve our required saving levels (this is the level that would be necessary to sustain ourselves if we stopped working).
Many Muslims enter a lifestyle of all work and no play which is detrimental to their health and wealth. The constant work routine keeps them locked into avoiding necessary decisions that need to be made to become wealthy Muslims. As you continue to implement your investment program, it’s important to monitor your portfolio on an ongoing basis and ensure that you rebalance your portfolio as appropriate.