As we observe the Holy Month of Ramadan, many of us in the UAE – including non-Muslims – have let the spirit of the occasion seep into our consciousness and are looking to do things more meaningfully. We could make a difference to ourselves, our families and society by reflecting on our spending habits to check if we really live by the values laid down by our scriptures – or even wisely enough to make our ends meet comfort.
This reflection becomes even more important given that it is not uncommon to hear people, particularly the youth, say that “my salary is over even before it is credited into my account”.
An income that needs to be spent over a month has been fettered even before its arrival. Undoubtedly, there is something wrong in the way that we manage our finances, which can affect all facets of life including health care, education and the food we need to lay on the table.
The need to rethink our spending habits is underlined by the fact that the month of Ramadan – which is, among other things, about abstinence from food and drink during the day – actually results in the some of the year’s highest grocery bills for many families.
Wastage is also highest during the month, which is totally against the spirit of Ramadan and fasting. We are not wasting simply food or money, rather the sustenance of other people – the poor, the needy – to whom our abundance rightfully belongs.
We are not being asked to give up comfort but only extravagance. This moderation sets a good example for families and societies to be financially independent and save adequately throughout the whole year. This will allow them to respond to emergencies more effectively and with dignity without going with a bowl in hand to others.
Does this mean that we cannot borrow or take up financing in times of need? Given the number of credit cards and financing that we have, this must ring alarm bells for us.
Under Islamic law, Muslims are allowed to sign up for a non-interest bearing loan to tide over difficult times. When help is not at hand from family and friends seeking money from an Islamic finance institution would be the next best step to take for avoiding interest. However, returning the borrowed sum or paying off the financing must be our first priority and it becomes imperative that we assess our capability to pay any financial obligation while taking on the debt.
If not for ourselves, we could assess our liabilities in the interests of our families and heirs. Upon our death, once the expenses of burial are paid for, our families will be responsible to ensure that the wealth left is used to settle our debt towards individual or banks. Undoubtedly, we would not want to leave behind a burden on those entrusted under our care.
On the other hand, lending on interest is even more unethical as it is in a way taking advantage of someone’s financial instability during a trying time. Investing on interest is also not permissible. Here, many of us hit a roadblock when deciding what to do with our savings. Allowing our savings to lay idle and dwindle under the weight of the obligatory zakat is against Quranic principles.
After the global financial meltdown, Islamic finance is being looked upon as a more dependable format for conducting transactions. This drive has opened up a plethora of investment options including sukuk, Islamic funds, Islamic deposits and saving schemes.
We could start with reflecting on these values in our day to day financial management by keeping in mind that we are but mere trustees and not the absolute owner of the wealth bestowed upon us.
Let us take a step back to evaluate our financial habits this Ramadan and identify ways in which we can make a difference to ourselves, our families and society at large. Ethical financial management will give us the peace of mind that we have been just managers of the abundance entrusted to us.
Amjad Naser is the head of Sharia at Noor Bank
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