Optimal management of monthly income

It has become a habit of many Arab families, including the Gulf families, which occupy the highest income levels in the Arab countries to borrow to complete the household expenses starting from the fifteenth to the twentieth of each month.

There are various pictures of borrowing, whether by cash flow from a relative or a friend, by taking loans from workplace, or by buying goods by installments to the extent that they buy grocery at the expense of the new-month salary.

To provide a lot of liquidity, some people may turn to make Tawarruq (buying goods in installments then selling it again to another person in cash at a lower price to provide liquidity) which is called "burning of goods" regardless of the Shari`ah position of them.

Monthly income needs a conscious and firm management, and cooperation of all family members in order not to be burden the family with debts which they cannot afford. Perhaps debts destroy the family; the simplest effect may be that the breadwinner would be pursued by creditors, whereas the harshest is: he will be a guest in a prison, or may be detained or arrested.

First: Paying the due rights of Allah from the money:

The first step a breadwinner should do is: To pay the due rights of Allah from his money according to Shari`ah rulings. These due rights were not ordained except for purifying and increasing the money. Allah (Glory be to Him) says: "Take Sadaqah (alms) from their wealth in order to purify them and sanctify them with it, and invoke Allâh for them. Verily, your invocations are a source of security for them; and Allâh is All-Hearer, All-Knower." [Surat At-Tawbah: 103]. It was reported in the Hadith: "The money of a servant will not be reduced because of charity." [Reported by At-Tirmidhy, and Al Albany graded it as authentic].

When a person gives in charity, his money shall be increased because of the Prophet's saying: "Every day two angels come down from Heaven and one of them says: 'O Allah! Compensate every person who spends in Your Cause,' and the other (angel) says: 'O Allah! Destroy every miser.'" [Reported by Al Bukhari and Muslim].

It is better to give a portion of your money in charity for your needy relatives, for one of charitable societies, or participate in one of the endowment projects. Then you shall find blessings and increase in your money from ways you do not know. Your charity will play an important role in turning away harms and afflictions, besides the money you spend to protect or treat yourself against these afflictions.

Second: Paying the due rights of people and debts:

Haste in paying your debts as well as the due rights of people and beware not to delay them while you are able to pay them. Beware of taking debts that you do not have the intention to repay, and do not take people's money without right because of the Prophet's saying: "Whoever takes the money of the people with the intention of repaying it, Allah will repay it on his behalf, and whoever takes it in order to spoil it, then Allah will spoil him." [Reported by Al Bukhari].

The Prophet (peace be upon him) sought refuge against "the predominance of debts, and the oppression of people." Be careful to avoid debts, sit by yourself, and calculate your debts. Write down your debts in a special record and whenever you have a sum of money, pay your debts and do not delay it.

Third: Saving even a small portion of your income:

Do not get accustomed to spend your monthly income in full, and try hard to save some of it for emergency. Try to save some of it to build up your private project and invest this extra money whether you are co-owner (to participate with your money and effort) or a silent partner (in which you participate with your money only without taking part in management of the company).

The Prophet (peace be upon him) exhorted the people to dispense with others, and do not resort to the people for begging. He said to Sa`d ibn Khawlah (may Allah be pleased with him): "It is better for you to leave your inheritors wealthy than to leave them poor begging others." [Reported by Muslim].

Fourth: Organizing purchases and expenses:

Do not follow the your desire of purchase because a human soul is like a child; if it desires something, it wants to have it at once. However, train yourself for calculating the benefits and harms of every purchase. It was reported that `Umar ibn Al Khattab (may Allah be pleased with him) said to Jabir when he saw him holding a piece of meat: "What is this, O Jabir? Jabir said: I desired meat, then I purchased it. `Umar said: Every time you desire something, you purchase it?!" Therefore, wait and take a rest before purchasing something, perhaps shortly you will not need it and its benefits will be little in your sight.

Always make a list of your monthly, annual, and seasonal needs. Arrange this list in descending order according to necessities, to accessories, and to improvements. Make a timetable to achieve and provide all your needs in case your budget allows, and take into account the previous matters.

Of the things which people were afflicted by in this age is:

Markets have become parks for individuals and families where you find them prisoners of offers and discounts which attract them to manufacturing companions or the marketers of their goods. A person always buys things which he does not need to store them until they are spoiled, therefore do not enter the supermarket except with a list of needs and avoid all the fake consumption.

Fifth: Avoid debts and installments:

Do not buy anything but when you have enough liquidity to purchase it. Avoid installments as much as possible and do not be tempted by legally permitted installments; permissibility does not mean to be involved in something that you cannot afford. In case you need to borrow some money, think how would you pay it in advance, and do not resort to it except at need, and you know your sources for repayment.

Beware not to listen to yourself only or to listen to fatwas that permit usurious loans because usury has destroyed the crops and the cattle. The international crisis has erupted as a result of usury and currently countries, not only institutions or individuals, declare bankruptcy.

How many merchants had profitable trade and high profits, and when they stretched out their hands to usurious loans, their trades were destroyed, their shares collapsed, their debts increased, and they became humiliated after they were honorable.

Sixth: Organizing pocket money for wife and children:

It is nice to allocate personal allowance for your wife at a certain percentage of your income, where she does not exceed it and does not transgress limits. Perhaps the ruling Ayah in this regard is: "Let the rich man spend according to his means; and the man whose resources are restricted, let him spend according to what Allâh has given him. Allâh puts no burden on any person beyond what He has given him. Allâh will grant after hardship, ease." [Surat At-Talaq: 7].

Of the traps that families fall in is: A wife's indifference to the budget of her husband and asking for more and more demands which often be improvements and not necessities to the extent that some husbands may resort to ill-gotten monies, such as: taking bribes to facilitate people's procedures in order to meet the needs of the family. Thus, they justify to themselves; therefore it is appropriate to set this personal expense, and the agreement between the spouses not to exceed this limit in order to protect the family from non-affordable expenses.

It is also important to use the pocket money allocated for children in training them how to manage their demands and their personal needs, and train them for saving from this pocket money. It is not part of rearing and compassion to follow their desires in purchasing things, excessive purchases, and luxurious consumption, thereby we have placed their feet on the path of foolishness and wasting. Allah (Glory be to Him) says: "And give to the kinsman his due and to the Miskîn (needy) and to the wayfarer. But spend not wastefully (your wealth) in the manner of a spendthrift. * Verily, the spendthrifts are brothers of the Shayâtîn (devils), and the Shaitân (Devil-Satan) is ever ungrateful to his Lord." [Surat Al Isra': 26-27].