Posted by In an era where almost everything can be personalized and modified as per requirement, then why do we pay less heed in planning our expenses? Simple planning can enhance the value of anything. In an age of limited space for living, we are provided with a variety of options to optimize the available space. Then why do we seldom strive to maximize the available income? The feat to maximize and expand the spectrum of income is always a predominant desire. But the efforts and planning associated with it are less observed.
I have seen people who used to dine out regularly but didn’t get tamed by the offers made by the restaurant ventures. On the other hand, I also came across another category of people who fall prey to the advances made by these organizations. Moreover, the price paid by the latter is more compared to the earlier. To invest is an art. It’s an art of taming or controlling our own self and not allowing the offers to fasten the grip over us. Those who possess this art can survive at a lower income level as well. And those who don’t have this art can’t meet their needs even by receiving their salary in six figures. The pearls of wisdom in this context are “Never ever spend more than you earn”. This is the rule applied to every segment of society. Or, I take this notion a little bit ahead, “don’t spend if you haven’t saved”.
Let’s understand the above discussion from the revered text of al Quran al Kareem. Allah Ta’ala states وَالَّذِينَ إِذَا أَنفَقُوا لَمْ يُسْرِفُوا وَلَمْ يَقْتُرُوا وَكَانَ بَيْنَ ذَٰلِكَ قَوَامًا And those who, when spending, neither exceed the limits nor act miserly and stay in moderation between the two. In the few verses earlier before this verse, Allah Ta’ala recounts the traits of the Muslim who is most dutiful and devoted to Him. And from those traits, one of the important traits is to economize while carrying out any expenses. The definition, to spend as discussed in the ayah kareemah is difficult to explain. But the true meaning of the ayah kareemah can be inferred and understood every day if we remain vigilant while carrying expenses. This ayah kareemah will give a new dimension to those who want to religiously follow the directives explained in it. While operating any expenses, we can ask ourselves three questions in the light of this ayah kareema;
- am overspending?
- Or, am I behaving miserly?
- Or, am I balancing between the two conditions? I think these three questions can give us the right direction.
Let’s try to understand it by considering a few techniques which are proved to be beneficial in this regard.
Budget your expenses.
Budgeting expenses is a pearl of true wisdom. Budgeting is forecasting. If anybody asks that we don’t know what will happen the very next moment then why we should get prepared for that? The answer is, an established fact, preparation gives the power to face the unprecedented situation. And the unpreparedness leads to a devastating situation. A student doesn’t know how he will be examined and how his cognitive skills will be evaluated. Doesn’t that mean that students’ efforts are futile. However, the best tool to face this situation or life’s other situation is equipping one’s self with all possibilities expected to be examined and tried. The more one is equipped with the proper preparation, the more chances of success will be.
Syedna Mohammed Burhanuddin RA once cited the excerpts from the discourses of Syedna Abde Ali Saifuddin RA where Saifuddin Aqa RA categorized people into three groups. One who earns Rs.1000 and spends Rs.700. He is saving Rs.300 from his earnings. He is the wisest of these three categories. The second one earns Rs.1000 and spends all, who falls in the category below the first one but still, he can be tagged as a rational individual who is not taking an unnecessary toll on his expenses. And the last one is insane who earns Rs.1000 and overspends from his earnings. He is making his life miserable by this trait. After referring to Syedna Abde Ali Saifuddin Aqa’s counsels Syedna Mohammed Burhanuddin RA advised us with His utmost affection that if a person is giving Rs.1000 to his family to look after the recurring expenses, and suddenly due to any unforeseen reason the income decreases in the next month, then it’s the duty of the husband and wife to cut the expenses and manage them from the available income. He TUS added that this should be done so prudently that the onlookers don’t get the idea of it and normalcy should be deliberately maintained.
A few advices from the financial experts
Nowadays we get captivated by the web of EMI services. The EMI option pushes us to fantasize, becoming the owner of the commodity which can’t be imagined or afforded in the slab of the income in which we are surviving. Even Muslims who abide by religion and don’t work on interest also fall into this trap. The experts suggest that if you require taking the loan (general perception of “loan” is money lent on interest, and for us, it’s “Qardan hasana”) then take it for purchasing assets and not for a perishable commodity. To understand this point deeply, we can take an example; if we want to buy a scooter for commuting then why buy the most expensive one if we can’t afford it? We should purchase a scooter which is within our financial means. The reason behind choosing to purchase a scooter that is affordable is that it falls under the category of a perishable commodity whose price value decreases the day it is purchased. On the other hand, we can purchase assets or commodities like land or noble metals, whose value remains intact, moreover, it increases during the course of time. If we stretch our capacity for purchasing anything which falls in this category then this type of investment is accepted and advisable. The risk of losing the money is very less.
Let’s sum up the discussion by the revered sayings of Rasulullah SA: ما عال من اقتصد (A person will never become impoverished if he doesn’t spend extravagantly). Today we see that giant business organizations are striving hard to practice this rule of thumb to sustain during the period of crisis.
In the end, I want to discuss the new ideology of “Minimalism”. A person who adopts this ideology is known as a minimalist, a person who tries to suffice his life from the least resources. This is the best practice that can help to live a less troublesome life. The important thing to keep in mind is: minimalism doesn’t mean refraining one’s self from the basic necessity which is required for survival. And, also it doesn’t mean limiting an expenditure that a person can afford to carry out. To attain financial independence these proven rules can be practiced, exercised, and adopted.
For more information on EMI, click here; https://service-to-mankind.com/even-act-of-god-cant-help-with-emi-payments/