A total of 81% of the global workforce of 3.3 billion people have had their workplace fully or partly closed according to the International Labour Organisation. As the effect of Covid 19 is damaging world’s economics day by day, for many of us there is plenty of uncertainty regarding the future. Many would have felt some sort of disruption in their income and felt compelled to access their savings. But on the other hand, other people do not have savings at all, and they may be struggling as we speak.

As Ramadan is at the door, and charities will be seeking donations to help destitute Muslims locally and abroad, for some of us there will be a question on our minds, If I have some wealth now then should I be saving it or should I be spending it in charity? What does Islam say about saving wealth for a rainy day?

It will be difficult to give a general answer as everyone’s situation differ from one another. Hence every Muslim should make that assessment individually. However, we can look at some guidelines established by Islam to assist us in making our decision.

Spending should be for the pleasure of the Almighty

First, we must understand that wealth has been bestowed upon us to utilised in the correct way in order to achieve great rewards from Allah. The prophet (pbuh) says: “You will never spend anything for the sake of Allah, but you will be rewarded for it, even (the food) that you put in your wife’s mouth.”[1] There are some general principles that guide Muslim consumers on how to behave and use their wealth based on Quranic verses and narrations of the prophet (pbuh). By adhering to these principles, Muslim consumers will gain the approval and pleasure of Allah and thus achieve great reward.

The Prioritisation on Wealth Utilisation

If we ponder upon the numerous hadiths available, we can deduce that there are priorities to spending in Islam[2]:

First Priority: Oneself and dependents

Second Priority: Poor and needy relatives

Third Priority: Charity and savings

  • Oneself and dependents:

The first priority for a consumer is to oneself and one’s dependents, as it has been reported in many hadiths. For example, a man came to the Prophet (peace be upon him) and said, “I have a Dinar.” He said, “Spend it on yourself.” He said, “I have another.” He replied, “Spend it on your children.” He said, “I have another.” He replied, “Spend it on your wife.” He said, “I have another.” He replied, “Spend it on your servant.” He said, “I have another.” He replied, “You know best (what to do with it).” [Imam Shafi’i and Abu Dawud reported it. Imam Nasa’i and Hakim reported it with the wife preceding the children].[3]

In another hadith the prophet (pbuh) says: “The Prophet (ﷺ) said, “The upper hand is better than the lower one (i.e., the spending hand is better than the receiving hand); and begin (charity) with those who are under your care; and the best charity is that which given out of surplus; and he who asks (Allah) to help him abstain from the unlawful and the forbidden, Allah will fulfil his wish; and he who seeks self-sufficiency will be made self-sufficient by Allah”.[4]

We learn from 2 things from these hadiths. Spending on the family should not feel as a burden but as a source of reward from Allah, hence it has been compared to sadaqah (charity). Charity is an act of kindness and therefore we should have the same approach when spending upon our dependents without making them feel indebted towards us.

Secondly spending on our dependents is better than voluntary charity. This is because compulsory (fardh) actions are better than voluntary (nafl) ones.[5]

Individuals should strive to ensure that they are able to take care of themselves and their dependents and to live a decent and comfortable life. These needs must be satisfied before wealth can be spent for other purposes.

  • Poor and needy relatives

Once the needs of the consumer and those of his/her dependants are fulfilled, the next priority of spending should be on relatives who are poor. Again, the reward of spending upon one’s relatives is among the greatest. The prophet (pbuh) says: “Verily, charity given to the poor has one reward, and charity given to family has two rewards: one for charity and one for upholding family ties.”[6]

  • Charity and Savings

Finally, the third priority providing voluntary support to other poor and needy. Allah has exhorted the believers in many places of the Quran to help those who are less fortunate.

As well as voluntary charity, scholars have argued that saving is recommended especially for those with families and other responsibilities. Savings will ensure that consumers and their dependents are financially secure to meet their future needs.

Ka’ab bin Malik narrates in a hadith that I said: “Messenger of Allah, to make my repentance complete I should divest myself of my property as sadaqah (alms) for Allah and His Apostle.” The Messenger of Allah (pbuh) said: “Retain some of your property, for that will be better for you.” (Bukhari)

In this hadith there is a clear indication that saving some wealth for the time of need is better than spending it all in sadaqah. However, if someone can manage himself even by spending it all then there is nothing wrong with it from an Islamic perspective.[7]

In conclusion, Muslim consumers should be managing their wealth seeking the pleasure of Allah. This encompass the various spending avenues going from spending upon oneself to savings for the future in case of adverse events etc. This also includes the way we will be spending our wealth upon our dependants and relatives or even the contribution we make towards charity. We may want to do a budget planning for the whole year in advance or just for few months cater for all those avenues (halal ones) we wish to spend on. But we must set our priorities in the right order. Spending on someone or something should never be at the detriment of taking someone else’s right away.

(Mufti) Billal Omarjee

[1] Bukhari

[2] Islamic Economics: Principles and Analysis ISRA

[3] Bulugh al Maram min Adillat al Ahkam of Ibn Hajar AL Asqalani

[4] Bukhari

[5] Al Istidhkaar of Ibn ‘Abd al Barr

[6] Tirmidhi

[7] Al ‘Uddat fi Sharhi al ‘Umdat of Ibn ‘Attar