7 Tips How Managing Finances in Islam

Islam is a religion that teaches its people to manage their finances by always saving money and spending money as needed.

And in Islam is also taught that we always save for the future.

Saving is saving some of the income we earn for the future, just in case there is an urgent need.

Managing finances becomes easier when we are used to it.

How to Managing Finances According to Islam

Saving money is an activity to manage good finances and be blessed by Allah SWT. To succeed according to Islam we must be able to manage our finances properly and well.

And here are some tips on managing finance according to Islam:

1. Halal work

Income from a lawful job or business is much better than that of an illegitimate business.

Money derived from illicit business or commonly referred to as illicit money, will never be saved or stored for a long period of time.

Haram money does not have blessings and is not blessed by Allah SWT, therefore haram money can never be saved.

2. Spend money simply

For tips on managing your finances so that we do not run out quickly, we should spend money simply and not waste the money you have.

3. Set aside some sustenance to save

Managing Finances
Managing Finances

Setting aside some income or saving money in managing finances has many benefits, one of which is just in case we experience a disaster that costs a lot.

We never know the future and don’t know when we’re going to be on top and when we’re going to be down.

Therefore, the Messenger of Allaah advises that we set aside some of the sustenance that we have for the poor and needy.

4. Avoid debt in managing finances

In times of emergency, debt is sometimes the only way that can be taken in managing finances. In Islam it is not advisable to be in debt if it is not really in a state of need and urgency.

But if it is forced to owe, then the person in debt is obliged to return the money he borrowed.

In a hadith, the Prophet (pbuh) said:

“Whoever owes money to another person and intends to return it, Then Allah will pass his intention. but whoever takes it with the intention of not paying, then God will corrupt him.” (HR. Bukhari,

5. Multiply alms

Alms according to Islam will not make the property owned reduced or depleted.

Thus one of the virtues of giving alms according to Islam is to increase sustenance. Allah opens the door of sustenance to those who give charity in the way of Allah.

5 Tips to stay young according to Islam

6. Not wasteful

In Islam extravagant attitudes are not recommended in regulating finances, because it is not included in the good.

And those who are wasteful will not be able to take aside any of their wealth, and those who are among the losers will not be able to leave it alone.

In a word, Allah SWT., said:
“And those who, when they spend, are neither extravagant nor niggardly, between them.”

In this verse it is explained that those who are not excessive means they are not extravagant people, and they

7. Scale priorities in managing finances

Buy all your needs according to their content, not less and nothing more. Avoid buying something that is not or is less necessary.

For example, your phone still works well but you have replaced it with the latest type. This is a waste in managing finances!

Keep in mind, technology will continue to evolve. If you insist on keeping up with the latest trends, there will be no end.

Leave a Comment