Redefining Riches: The Modern Muslim's Guide to Financial Flourishing

 

In today's rapidly changing world, the significance of accurate financial planning and wealth management cannot be overstated. Due to the facts on the ground, public awareness in planning and realizing their wealth and finances to achieve their financial goals in the future is still low. Islamic wealth management, as part of the broader discipline of Islamic finance, plays a crucial role in helping Muslims navigate the complexities of financial planning while adhering to Shariah principles (Mahmud et al., 2019).

Islamic wealth management is not just about avoiding riba and non-Shariah compliant investments, but it also emphasizes the application of Maqasid al-Shari'ah, the objectives of Islamic law, throughout the entire process . This means that Islamic wealth management goes beyond simply following religious prohibitions; it focuses on aligning financial decisions with principles of social justice, equity, cooperation, poverty alleviation, and overall human well-being .

In order to achieve financial success, Muslims need to adopt a comprehensive approach to wealth management.

This includes integrated planning, portfolio management, and a focus on all aspects of wealth creation, protection, distribution, purification, and accumulation. By integrating investment management and personal financial planning, Islamic wealth management aims to provide holistic advisory and management services that align with Shariah principles (Al-Abbadi & Abdullah, 2017).

This approach considers not just the accumulation of wealth during a person's lifetime but also the distribution and preservation of wealth upon their death, as prescribed by Sharia principles. Furthermore, Islamic wealth management recognizes the importance of preserving wealth as an essential aspect of Islam. It is classified as daruriyyat within the framework of Maqasid al-Shari'ah, highlighting its significance in ensuring human well-being and the sustainability of the community. By incorporating Islamic financial products, asset allocation strategies, portfolio management techniques, and tailored financial planning, individuals can ensure that their wealth is not only protected but also utilized in a manner that aligns with their religious values and contributes to the overall betterment of society.

In summary, Islamic wealth management enables Muslims to effectively manage their wealth and finances while adhering to Shariah principles . By integrating investment management, personal financial planning, and the principles of Maqasid al-Shari'ah, Muslims can redefine their understanding of riches and strive for financial flourishing that encompasses not only monetary wealth, but also social justice, equity, and the betterment of their community .