Why Budgeting is Good for Your Deen
In an age of recession, everyone is talking about being more careful with money. From an Islamic perspective, no matter what the economy is like, being careful with spending and saving is necessary to help avoid extravagance, provide for one`s family, prevent debt as much as possible, and to be able to allot money for charitable giving.
One of the most important habits that we all should practice is budgeting. One main reason for doing so is based on instructions within the Holy Quran and the Sunnah on how wealth should be used. Budgeting helps us to understand where our wealth is being used and to understand whether or not it is being used to be in line with Allah’s instructions.
Budgets help avoid falling into debt
Abu Hurairah (May Allah be pleased with him) reported: The Prophet (ﷺ) said,
“The soul of the deceased believer remains pending on account of the debt till it (the debt) is repayed.” At-Tirmidhi Book 7 Hadith 49
It’s no secret that many people have more than their fair share of debt. But in Islam, having debt is more than just another bill to be paid. As can be seen from the Hadith, having debt unpaid upon your death is actually a reason why a believer will not be rewarded with Jannah. Clearly, this is an incredibly serious matter within our Deen and if you find yourself in debt, then following a budget will greatly help to extricate yourself from that situation. If you are not in debt; congratulations on being a part of the minority! But following a budget will help you stay on track and save for those unexpected circumstances so that insha-Allah you don’t ever find yourself in debt.
Budgets help you spend wisely and within your means
وَءَاتِ ذَا ٱلْقُرْبَىٰ حَقَّهُۥ وَٱلْمِسْكِينَ وَٱبْنَ ٱلسَّبِيلِ وَلَا تُبَذِّرْ تَبْذِيرًا
إِنَّ ٱلْمُبَذِّرِينَ كَانُوٓا۟ إِخْوَٰنَ ٱلشَّيَٰطِينِ ۖ وَكَانَ ٱلشَّيْطَٰنُ لِرَبِّهِۦ كَفُورًا
“And give the relative his right, and [also] the poor and the traveller, and do not spend wastefully. Indeed, the wasteful are brothers of the devils, and ever has Satan been to his Lord ungrateful.” (Quran 17:26-27)
In this verse we are instructed to spend on our relatives, the poor, and the traveller and are warned against spending wastefully. When you budget your wealth you will know exactly where it is going so that you ensure that it is being spent wisely and on those people and things that are uplifting and good.
Budgets help prioritize spending for the sake of Allah
Abu Huraira (RA) reported Allah’s Messenger (ﷺ) as saying:
مَا نَقَصَتْ صَدَقَةٌ مِنْ مَالٍ وَمَا زَادَ اللَّهُ عَبْدًا بِعَفْوٍ إِلاَّ عِزًّا وَمَا تَوَاضَعَ أَحَدٌ لِلَّهِ إِلاَّ رَفَعَهُ اللَّهُ
Charity does not decrease wealth. No one forgives another except that Allah increases his honour, and no one humbles himself for the sake of Allah except that Allah raises his status. Sahih Muslim 2588
There are numerous verses and hadith that speak about spending wealth on charity. It is a crucial aspect of our Deen that shows our appreciation and gratitude for the blessings conferred upon us as well as has a significant positive societal impact. Therefore, giving and spending for the sake of Allah really should be built into our budgets since we should not fear any loss of wealth by sharing it with others.
These are just some of the many advantages to following a budget. It is something that people of all levels of wealth should follow. There are only positives and no drawbacks in the long term to adhering to one, so what are you waiting for? Time to start budgeting!