Thursday, August 2, 2012

Islamic Financial Planning aims to Create an Eco-matured Nation…

Islamic Financial Planning is an emerged-model in today's global socio-economic reality to facilitate in creating an economically matured and self-reliant nation.

It has a relationship with the idea of Islamic Financial Marketing, viewed by Ibnu Abu Yusuf & Ibnu Taimiyyah and Ibnu Khaldun. They defined it as the creation, developing and delivery of unique customer satisfying competitive products and services at a profit to organization and customer in the lights of Islamic values and principles. In contrast, conventionally it is defined as the process whereby an individual's personal and financial goals are achieved through the development and implementation of a comprehensive financial plan.
Islam is a comprehensive, integrated and holistic system that, governs all aspects of life, major and minor, personal and social, spiritual and materialistic while relates this worldly life to the Hereafter. Thus, the compliance of total spirit of Islam is essential in every socio-economic and business activities in view of achiving the result accordingly. Muslim are encouraged in planning for their life and put efforts to achieve the goal setting then ask help from Allah (swt). The final stage is tawakal for what the result and takes it as the destiny bestowed by Allah (swt).
The holy Prophet Muhammad (saw) used to supplicate Allah (swt):
‘My Lord, help me and do not give help against me, grant me a victory, and do not grant victory over me, plan on my behalf and do not plan against me, guide me and made my right guidance easy for me, grant me victory over those who act wrongfully towards me….’(Narrated by Abu Daud.).

In Islam, financial planning is not just merely a process of acquisition and accumulating wealth but it has a broad definition which relates to the concept of vicegerent (kalifah).

According to the Holy Qur’an, God created man as his vicegerent (or ambassador) on earth. Allah (swt)  says in Al-Qur'an:

Behold, thy Lord said to the angels: "I will create a vicegerent on earth." They said:” Wilt Thou place therein one who will make mischief therein and shed blood? - Whilst we do celebrate Thy praises and glorify Thy holy (name)?" He said: "I know what ye know not." (Surah Al-Baqarah:30).

From the above verse, and others like it, we understand that as the khalifah or vicegerent of God on earth, man is gifted with certain powers, which other creatures of God do not possess. For example, he possesses (within limits of course) intellectual faculties. We also read that God created all things on earth for man.

‘He it is who created for you all that is on earth. Then He rose over (Istawa) towards the heaven and made them seven heavens and He is the All-Knower of everything.’(Surah Al-Baqarah, verse 29).

The duty of man as Allah’s khalifah is to make use of all the blessings of Allah (swt) on earth to his own benefit. For this, man is given freedom, that is, freedom of choice and action (also within limits). It is because of man’s special faculties and his freedom that he becomes the best of Allah’s creatures. Financial Planning is basically a discipline of wealth management that applies to the unique needs and concerns of respective individual.

As a Muslim even though a person does not possesses any form of wealth, he still has to commit with financial planning process because either he would leaves debt or children to the trusted one. In the following discussion, we would like to focus on the comprehensive aspects of financial planning whereby an individual should has a balanced approached in order to achieved the dynamic goal.
Financial Planning quantifies and manages individual’s success in four financial pillars; wealth protection, wealth accumulation, wealth preservation and wealth distribution. Each of these different components is meant to play a different role in addressing unique issues and the objective must in line with the Islamic Shari'ah principle.

In Islam, every one is confined with the concept of Allah’s bounty or sustenance. This concept means that Allah is the sole giver of “bounty” to every living creature on this world. Allah blesses His bounty on those who earn and spend it in compliance with His covenants. He does not bestow His blessing or mercy on those who earn it illegitimately and spend it irresponsibly. Allah affirms:

‘For Allah is He Who Gives (all) sustenance……’(Al-Dhariyat 51:58)
The concept of Allah’s bounty is considered very important in Islam as a good Muslim is required to have a proper balanced between the fulfillment of his spiritual and worldly obligations. The Prophet (saw) advised;

 ‘A Muslim should prepare himself for the next world as if he is going to die tomorrow, but at the same time work hard to improve all his worldly comforts as if he is going to live forever.(Narrated by Al-Dailami).
Islam covers the extremes of zuhd (abstinence) and bulk (avarice). A Muslim should not forego wealth. Neither should he be avaricious in the pursuit of wealth. Zuhd is not amounting to rejection of pleasure but rather leading a pious life by his ability to life moderate and within his mean.
This is why Islam encourages reasonableness and moderation. As a Muslim we are not discourage from acquiring wealth but we must know how to earn and spend it in accordance with the Islamic principles. Wealth should not be abused or misused as Allah SWT has laid down very clear injunctions on how wealth is to be acquired and spent.
 Indeed, wealth is a form of trial by Allah SWT towards His servants whether they follow His injunctions regarding wealth acquisition and disposal and as such the owners are to be fully accountable on the Day of Judgment for what they do with their wealth. In Islamic financial planning, an individual must understand the discipline of how to protect, to accumulate, to preserve and to distribute the wealth according to the Islamic Shari'ah.



No comments:

Post a Comment