Allah says in the holy Quran – “Allah will destroy Riba (interest) and will give increase for Sadaqat (deeds of charity, alms, etc.) And Allah likes not the disbelievers, sinners”. (Surah 2 Al-Baqara 276)
So this gives focus to 2 areas;
Charity/Zakat: In the month of Ramadan we tend to give huge energy and emphasis to doing deeds and giving in charity. And it’s the month many of us calculate and give our Zakat. Zakat is an obligatory worship so it is crucial we understand, calculate and distribute it correctly. And really the onus is on ourselves to self-educate about this pillar. Zakat is not straightforward – one needs to spend time studying it. Here are some online sources and talk which I am giving.
- Zakat.org : As well as the website, they have a booklet you can download. This is the best resource in the English language I have found on Zakat. They adopt a madhab neutral approach. Their book is mainly based on FIQH AL ZAKAH (VOLUME I & II) – DR. YUSUF AL QARDAWI ( a 700 page volume).
- nzf.org.uk : An excellent website, with lots of resources – videos, Q & A etc. based on Hanafi madhab.
- Zakat Education Workshop: Insha’Allah a comprehensive talk I am giving on Zakat tomorrow. The talk is mainly based on a. with some elements of b.
Avoiding Riba/Interest: We should be doing our maximum to avoid interest in all our financial affairs. Make the right intention and make a start in Ramadan. Some key action points:
- Open an Islamic bank account. Even if you take no interest (or donate the interest), if you have a conventional account you are supporting the interest based industry.
- Have an Islamic mortgage rather than an interest based one. Avoid investing in countries where Islamic mortgages are not available.
- Do not hoard money in your bank account (Islamic or otherwise). Our wealth is a blessing from Allah and should be used productively.
- Review your Savings & Investments. There will be no Baraka (blessing) in the returns from non-permissible investments. You could have a savings with a conventional provider, but they may have shariah compliant options. There are plenty of good options available.
- Life Assurance to cover your liabilities/debts and financial dependents in the event of your death. Conventional life assurance includes elements of Riba and Gharar (unnecessary uncertainty) and should be avoided. However Family Takaful is the halal alternative.
- Whichever country you have assets in, you should have a shariah compliant will in place to cover their distribution when you die.
- See a financial adviser specialising in sharia compliant financial planning. That’s me! I offer a free initial meeting or can have a chat over the phone. Mobile 052 644 8162, [email protected] .
- Get yourself financially organised. Vital to ensure you reach your financial goals and accurately assess your Zakat.
May everyone have a rewarding and blessed end of Ramadan.