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How Tabdzir Can Hinder Investment

Devin Halim Wijaya12 August 2024

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Tabdzir, or wastefulness, is one behaviour that is often overlooked in our daily lives. Tabdzir refers not only to material waste but also to time, energy, and other resources. In an economic and financial context, tabdzir can have serious consequences that hinder investment growth, both at the individual and national levels. This article will discuss how tabdzir can hinder investment and what negative impacts it can have.

Definition of Tabdzir and its Impact

Tabdzir can be defined as the improper use of resources. The stated definition of tabdzir, according to the scholars, is as follows:

التَّبذيرُ صَرفُ الشَّيءِ فيما لا ينبغي

Tabdzir is allocating something to something that is not appropriate.

In Islam, tabdzir is considered an act that is disliked by Allah. Scholars such as Ibn Kathir explain that tabdzir is spending money on something that is not permitted by Shariah, whether it is a large or small amount. The Qur’an in Surah Al-Isra’ verse 27 also emphasises that those who waste their wealth are the brothers of Satan, who are disobedient to his Lord. Tabdzir in the verse is explained as follows:

إِنَّ الْمُبَذِّرِينَ كَانُوا إِخْوَانَ الشَّيَاطِينِ ۖ وَكَانَ الشَّيْطَانُ لِرَبِّهِ كَفُورًا

Verily, the spendthrifts are the brothers of the devil, and the devil is very disobedient to his Lord.

The impacts of tabdzir range from lost opportunities to save to reduced purchasing power in the future. When a person or a country is caught up in a pattern of tabdzir, they tend to spend resources that could have been invested. As a result, opportunities to grow wealth or make more productive investments are hindered.

Tabdzir at the Individual Level

On an individual level, tabdzir can hinder investment by reducing the amount of money available to invest. For example, when a person spends their income on unnecessary items, they miss out on the opportunity to save or invest in more productive assets such as stocks, bonds, or property.

In addition, time tabdzir also has a big effect. When individuals spend time on unproductive activities, they miss out on opportunities to improve their skills or seek better investment opportunities. The accumulation of these behaviours can result in financial stagnation and low growth of personal assets.

Tabdzir in Business and Society

Tabdzir does not only occur at the individual level but can also occur in business and society. In the business world, tabdzir can appear in the form of inefficient spending, such as the purchase of unnecessary equipment, excessive operational costs, or investment in unprofitable projects. Companies caught up in the practice of tabdzir will experience a decline in profitability and lose competitiveness in the market.

In the context of society, tabdzir can appear in the form of excessive consumptive behaviour. When people prefer to spend their money on unnecessary luxury items rather than saving or investing, this can result in low overall investment rates. Tabdzir in society can also hinder economic development, as resources that should be used to create jobs and improve infrastructure are instead wasted on unproductive things.

Also Read: How to Discipline Yourself to Consistently Invest

Overcoming Tabdzir to Increase Investment

To overcome the negative impacts of tabdzir, both individuals and companies need to implement appropriate strategies. At the individual level, it is important to increase financial awareness and discipline in financial management. Education on the importance of saving and investing needs to be improved so that people are wiser when spending their income.

In business, companies need to conduct regular internal audits to identify. The use of technology and efficient management practices can also help reduce tabdzir. By adopting this approach, companies can invest their funds in business development, which ultimately increases their profitability and competitiveness in the market.

Tabdzir is one of the main barriers to investment growth, whether at the individual, business or societal level. Inefficient use of resources results in missed opportunities to save and invest, which in turn hinders economic growth. By raising financial awareness and improving budget governance, we can reduce tabdzir and pave the way for more productive and sustainable investments. Wise investment is key to achieving stable economic growth and future prosperity.