Have you ever felt like your money runs out quickly without knowing where it went? Or maybe you want to live a more financially peaceful life but don’t know where to start? Don’t worry, you’re not alone! The companions of the Prophet Muhammad had a cool way of managing their finances. Want to know the secret? Let’s discuss them one by one!
How to Manage Personal Finances of the Companions
How do we make sure that our finances are not only enough for daily needs, but can also be useful for others? Well, the companions of the Prophet Muhammad had a cool way of managing their finances. It’s not just about being smart at managing money, but also how wealth can be a way to get closer to Allah SWT.
They don’t see wealth as just a tool to fulfill worldly desires, but also as a means of worship and sharing. So, how do they manage their finances? Let’s discuss them one by one!
1. Distributing Income with a Balanced Principle
One of the friends who is known to be good at managing finances is Salman Al-Farisi. He has a cool trick for managing income, namely using the 1:1:1 principle. Simply, every time he gets three dirhams:
– One dirham is used to meet family needs,
– One dirham is given in charity to those in need,
– One dirham is reinvested as business capital.
This method shows a balance between personal needs, concern, and long-term financial planning. It fits perfectly with the word of Allah in the Qur’an:
“And do not squander (your wealth) wastefully. Indeed, the wasteful are brothers of Satan, and Satan is very ungrateful to his Lord.” (QS. Al-Isra: 26-27)
With this trick, he can still meet his needs, share with others, and be ready to face the future. Great, right?
Also read: Financial Management at the Time of Muhammad ﷺ
2. Avoiding Extravagance and Excessiveness
Who says that being rich means living luxuriously? Abdurrahman bin Auf, one of the super rich friends, but still lived simply. In fact, most of his wealth was donated to help the struggle for Islam.
The Prophet Muhammad SAW taught the importance of living simply and not being excessive in spending wealth. This is in accordance with his words:
“Eat, drink, give alms, and dress without feeling proud and arrogant and excessive. Indeed, Allah is proud when His blessings on His servants are shown.” (Narrated by Bukhari and Muslim)
From the story of Abdurrahman bin Auf, we can learn that having a lot of wealth does not mean having to live luxuriously. In fact, wealth is better used for good things. Living frugally also does not mean being stingy, but rather being wise in managing sustenance which is actually just a trust.
3. Spending Wealth in the Way of Allah
Utsman bin Affan was a successful merchant who was very generous! One of his cool actions was buying the Raumah well to help Muslims in Medina who were having difficulty getting water. Initially, this well belonged to a Jew who sold water at a high price. But Utsman immediately intervened, bought it, and then donated it to the Muslim community so that they could get free water. MashaAllah, that’s amazing!
Allah says in the Qur’an:
“The example of those who spend their wealth in the way of Allah is like a seed that grows seven stalks, in each stalk is a hundred grains. Allah multiplies it for whomever He wills, and Allah is All-Encompassing, All-Knowing.” (QS. Al-Baqarah: 261)
From the story of Utsman bin Affan, we can learn that sharing wealth for the benefit of many people not only makes life more blessed, but also brings manifold rewards. The goodness that we plant will definitely bear sweet fruit!
Also read: 7 Principles of Transparency for Islamic Family Financial Planning
4. Preparing Savings and Investments
Sa’ad bin Abi Waqqash was a friend who was smart at managing finances. He always set aside some of his wealth to save and invest in a business that could continue to grow. One day, when he was sick, he intended to give all his wealth in charity. But the Prophet Muhammad SAW reminded him to still leave some for his family. He also said:
“Indeed, if you leave your heirs in a rich state, it is better than you leaving them in a poor state and begging from people with their hands outstretched.” (HR. Bukhari: 2537)
From the story of Sa’ad bin Abi Waqqash, we can learn how important it is to have a long-term financial plan, not only for yourself, but also for your family. So that life remains balanced and blessed!
5. Avoid Unnecessary Debt
Bilal bin Rabah is an exemplary example of a simple and wise life in managing finances. He was always careful about going into debt and preferred to live within his means, so that he would not be burdened in this world or the hereafter. The Prophet Muhammad SAW also reminded:
“A believer is hindered by his debt until the debt is paid off” Abu Isa said, “This is a hasan hadith and is more authentic than the first.” (HR. Tirmidhi: 999)
From the story of Bilal, we learn that avoiding unnecessary debt is one of the surefire ways to manage finances wisely. So that life is more peaceful and not constantly thinking about it!
Also read: Nurturing Wealth: Tips for Saving and Investing During the Holy Month of Ramadan
6. Do Good Deeds Sincerely
Abu Bakar Ash-Shiddiq was a friend who always put the interests of Islam before his own wealth. For him, wealth was just a tool, but struggle and goodness were the most important. When the Prophet Muhammad SAW raised funds for the Tabuk war, Abu Bakar donated all his wealth. When asked what he left for his family, he replied: “I left Allah and His Messenger.”
From the story of Abu Bakar, we learn that sincerity in doing good deeds is the main key in managing wealth so that it becomes a blessing.
Also read: Financial Management during the Caliphate of Umar bin Khattab radhiyallahu anhu
Conclusion
The companions of the Prophet Muhammad SAW provide real examples of how to manage finances wisely. They not only used their wealth responsibly, but also ensured its blessings, were not wasteful, diligently saved, were careful with debt, and always shared for the benefit of the community.
If we can emulate their financial principles, of course life will be more balanced between personal needs, charity, and a more planned future.
May we all be given blessed sustenance, a broad heart, and wisdom in managing wealth. May every rupiah we use bring benefits, and every charity we give become an investment for happiness in this world and the hereafter. Aamiin.
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References
Al Qur’an Al Karim
Musnad Ahmad (HR. Ahmad: 6421) – https://hadits.in/ahmad/6421
Shahih Bukhari (HR. Bukhari: 2537) – https://hadits.in/bukhari/2537
Sunan Tirmidzi (HR. Tirmidzi: 999) – https://hadits.in/tirmidzi/999