Home Articles Islam Moderation in Expenditure

Rasulullah (sallalahu alayhi wasallam) is reported to have said: Moderation in expenditure is half of livelihood. (Mishkaat) In stringent financial conditions it is extremely foolish to continue adopting a high-flying lifestyle, especially when it is evident that the adverse economic situation is biting hard and businesses are collapsing all around-May Allah Ta’ala protect everyone!

Moderation and simplicity must be the rule. One should also not be concerned with keeping up appearances. It is more respectable and honourable, in this world and the hereafter, to sell the mansion and live in a rented flat, or sell the luxury car and drive something smaller, rather than try to pull along just to keep appearances, and finally go insolvent to the detriment of ones creditors. It is also the height of foolishness to try to live up to the standards of others. One should rather look at those who are less fortunate than oneself and be content with ones lot.

Many people with financial difficulties attempt to solve their problem by resorting to borrowing on interest or running overdrafts. This merely compounds the problem. Many people have seen their huge empires collapsing simply because of the interest.

In times of recession many people cannot fulfil their commitments and cannot pay their creditors on time. Some businesses even become bankrupt. In this regard the following aspects must be taken into consideration: If one has a definite problem with paying back ones debts, do not play hide and seek with ones creditors. Also do not make false promises. This will lead one onto a trail of endless lies to cover up more lies. One should meet with ones creditors and put forward ones difficulties. Come to an agreement with regard to the payment. If the matter has reached the stage of insolvency the same approach has to be adopted. Being declared insolvent does not absolve one of ones debts. May Allah Ta’ala protect every persons honour and may he grant one and all abundant halaal sustenance. Aameen