SAVING MONEY IN ISLAM: ARGUMENTS FOR AND ARGUMENTS AGAINST.

INTRODUCTION.

There has been different opinions on either saving is a virtue or not in legal source of Islam i.e Qur'an and Sunnah and the practice of the rightly guided caliphs and Salafu saliheen. In this article, attempts are made to present argument for saving in Islam and those against saving as propounded by different Muslim scholars in our attempt to answer either saving is a virtue or vice from the legal sources of Islam.

WHAT IS SAVING?

According to Professor of Economics, Laurence J. Kotlikoff, "saving means different things to different people. To some, it means putting money in the bank. To others, it means buying stocks or contributing to a pension plan. But to economists, saving means only one thing—consuming less out of a given amount of resources in the present in order to consume more in the future. Saving, therefore, is the decision to defer consumption and to store this deferred consumption in some form of asset."

INDIVIDUAL MOTIVES FOR SAVING.

Research has shown household (individual) saving motives vary from country to country, implying that culture as well as economic environment influences household saving motives. Below can be said to rank high across countries:-

The precautionary motives—that is, the motive to save in order to be prepared for various future risks—is one of the key reasons people save. Besides the risk of living longer than expected, people save against more mundane risks, such as losing their job or incurring large uninsured medical expenses.

Life-cycle (Transaction) motives -that is household or individual save at specific times in life so as to have sufficient funds available to spend on anticipated expenses, for example, when starting a family or nearing retirement. Such expenses may include, saving for education, saving for children's education, saving for purchasing or building a house, saving for purchasing a car or any other durable goods, saving to leave a bequest, saving for holiday or travel for religious reasons such as Hajj or to explore the nature and so on.

Speculative motives-individual save in order to take advantage of good investment opportunities that may arise. This may include saving in order to start a business.

ARGUMENTS FOR SAVING IN ISLAM.

Below are some arguments in favour of saving in Islam.

1. Zakat as a purifier of saving. It is argued that the achiles hill of zakah is to purify saving since Muslims do not pay Zakâh on income. We only pay Zakâh upon our savings and only if those savings have reached a certain level and have remained at or above that level for a full year. `Aishah said: the Prophet (peace be upon him) said: “No Zakâh will be levied on money until a year passes from the time of its possession.”[Sunan Ibn Mâjah (1792) with an authentic chain of transmission as stated by al-Zayla`î in Nasb al-Râyah (2/328), al-Nawawî in al-Khulâsah, and al-Albâni in Irwâ’ al-Ghalîl (3/254)]

It was related by `Ali that the Prophet (peace be upon him) said: “If you have 200 durhams and a year passes then you have to pay five dirhams. You do not have to pay anything for the gold you possess until it reaches twenty dinars. If you possess twenty dinars and a year passes a year then you have to pay half a dinar.” [Related by Abû Dâwûd and authenticated by al-Albânî in Sahîh al-Sunan]

A person without savings will never pay Zakâh on monetary wealth. It is the Zakâh that purifies one's savings, by giving the poor and the needy their due from it. If a person doesnt pay zakah on wealth which has reached a nisaab, that is hoarding of wealth and condemned in Islam. Al-Bukhaari (1404) narrated that Khaalid ibn Aslam said: We went out with ‘Abd-Allaah ibn ‘Umar (may Allaah be pleased with him) and a Bedouin said: Tell me about the words of Allaah, “And those who hoard up gold and silver (Al‑Kanz: the money, the Zakaah of which has not been paid) and spend them not in the way of Allaah”. Ibn ‘Umar (may Allaah be pleased with him) said: The one who hoards them and does not pay Zakaah on them, woe to him. That was before Zakaah was revealed; when it was revealed, Allaah made it a purification of wealth.

Maalik narrated in al-Muwatta’ (595) said that ‘Abd-Allaah ibn Dinar said: I heard ‘Abd-Allaah ibn ‘Umar when he was asked about kanz – what is it? He said: It is wealth on which Zakaah is not paid. Thus it is clear that the kind of wealth that is blameworthy is that on which Zakaah is not paid. As for that which is beneath the threshold (nisaab), or which reaches the threshold and zakaah is paid on it, it is not kanz. Thus it is clear that Islam does not forbid storing up wealth, rather it forbids not paying Zakaah on it.

2. The law of inheritance and wasiyya exists because there is estate and savings. The inheritance laws in Islam are quite detailed and allot percentages of the entire estate to various relatives of the deceased. This pre-assumes that there is an estate which the deceased left behind, which in other words is wealth that he or she had accumulated or saved.

Indeed, due to the importance of leaving behind something to one's needy dependants to provide for them in the event of one's death, the Prophet (peace be upon him) restricted charitable bequests (wasiyya) to no more than a third of one's estate.

The following is related about the steemed Companion, Sa`d b. Abi Waqqas, who wanted to make out a will giving away in charity everything that he owned:He went to the Prophet (peace be upon him) and said to him: "O Messenger of Allah! I have a lot of wealth and only my daughter to inherit it from me. Should I bequeath all of my wealth in charity?" The Prophet (peace be upon him) told him that he should not do so. Then Sa`d suggested bequeathing two-thirds of his wealth to charity. When the prophet again refused, Sa`d then suggested half of his wealth. At this point the Prophet (peace be upon him) replied: "One-third, and that is still too much. It is better for you to leave your heirs wealthy, rather than leaving them dependent and begging from others.” [Sunan al-Tirmidhî (2042), Sunan Abî Dâwûd (2480), Sunan al-Nasâ'î (3567) and Sunan Ibn Mâjah (2699)]

3. The Prophet Muhammad peace be upon him never absolutely abandon saving. Anas narrated: “The Prophet never saved anything for himself for the next day.” [At-Tirmithi] However, the Prophet did not absolutely abandon saving. ‘Umar narrated: “The Prophet used to sell the harvesting of the date-trees of Beni Nadheer (a Jewish tribe) (which he , gained as a war booty) and he would keep for his family what they would suffice them to eat for a whole year.” [Al-Bukhaari and Muslim]

Ibn Daqeeq Al-‘Eed explained the two narrations saying that the first narration refers to saving for himself and the second narration refers to saving for his family even though he is benefitting from that as well. However, if he was lonely and did not have a family he would not have saved for himself at all. The fact that the Prophet did not save for himself reflects a very strong state of faith as this shows the complete reliance on Allaah, but this is something that is not obligatory on every Muslim.

4. The story of Prophet Joseph alayhi salaam shows the virtue of saving. Allah tells us in the Qur'ân: “(Joseph) said: 'For seven years you should cultivate the land as usual, but leave the harvest that you reap in the ear except for a little that you eat. Then after that will come seven difficult years in which you will eat all that you have set aside except for a little of what you have stored. Then will come a year of abundance in which you will press wine and oil'." [Sûrah Yûsuf: 47-49] This is a clear recommendation to save for future need.

5. The law of Hajr. According to Ismail Yurdakok, Hajr is to place the legally incompetent person under the care of a guardian.It isa precaution against much (over)consumption.The majority of the Islamic jurists say:Islamic law can prohibits the deeds of spendthrift (prodigal) and put him/herunder restraint and Islamic judge appoints a man in charge of properties ofspendthrift.This man gives enough money for spendthrift’s living conditions:“Do not give the weak of understanding the property which Allah has given you to maintain,but cloth them from it,and speak kindly to them”(Nisa:5).Also for orphans,there is a precaution against over consumption;“Put orphans to the test until they reach the age of marriage;then,if you find them sound judgement,deliver over to them their property...”(Nisa:6).

7. The story of buried treasure by the righteous parent for his children. Quran has not prohibited to accumulate the savings (also when we give its zakat):“As for the wall,it belonged to two orphan boys in the city.There was beneath it a(buried) treasure belonging to whom,and their father had been righteousman...”(Kahf,82)Fearing the dishonesty of the wicked townsmen,the children’s father had buried their ihheritance so that they could recover it when they came of age.Quran didnot condemned this behaviour even the word “saleh: righteous” was used for this father.

8. Saving as a way to combat severe poverty. Qur'an emphasize to strike a balance in our relationship with money/wealth between consumption and saving, it states " and let not your hands be tied to your neck ( like a miser) nor stretch it forth to its utmost reach, so that you become blameworthy and in severe poverty." 17/32. 17:29.

ARGUMENTS AGAINST SAVING IN ISLAM.

Below are some arguments against saving in Islam.

1. Spending is ordained. Islam emphasizes that its followers spend their wealth. Allah says in Surah Al-Baqarah:

يَا أَيُّهَا الَّذِينَ آمَنُوا أَنفِقُوا مِمَّا رَزَقْنَاكُمْ مِنْ قَبْلِ أَنْ يَأْتِيَ يَوْمٌ لا بَيْعٌ فِيهِ وَلا خُلَّةٌ وَلا شَفَاعَةٌ وَالْكَافِرُونَ هُمْ الظَّالِمُونَ

“O you who believe! Spend of that which We have provided for you, before a Day comes when there will be no bargaining, nor friendship, nor intercession. And it is the disbelievers who are the Zalimun.” (2:254)

الَّذِينَ يُنفِقُونَ أَمْوَالَهُمْ بِاللَّيْلِ وَالنَّهَارِ سِرّاً وَعَلانِيَةً فَلَهُمْ أَجْرُهُمْ عِنْدَ رَبِّهِمْ وَلا خَوْفٌ عَلَيْهِمْ وَلا هُمْ يَحْزَنُونَ

“Those who spend their wealth (in Allah’s Cause) by night and day, in secret and in public, they shall have their reward with their Lord. On them shall be no fear, nor shall they grieve.” (2:274).

According to Dr. Khalid Zaheer, the most forceful condemnation of saving despite the existence of genuine avenues of infaq is offered in the Qur'an thus:

To those who accumulate gold and silver, and do not spend in the way of Allah, announce the news of painful punishment. On the day when heat will be produced out of that (wealth) in the fire of Hell, and with it will be branded their foreheads, their flanks, and their backs (and it will be said): 'This is the (treasure) which you stored up for yourselves, so now taste of what you had stored' (9:34-5)

Dr. Zaheer make it clear that "not all Muslims, however, believe that the above-mentioned verse and others carrying similar messages are condemning unnecessary accumulation of wealth. It is reported that when Ibn 'Umar (raa), the companion of the Prophet (sws), was asked about the meaning of the verse, he said that it referred to a person who accumulates wealth without paying zakah on it. According to him the verse was revealed before payment of zakah was made compulsory. After the introduction of zakah, wealth in possession of an individual is purified even if he accumulates it (Bukhari, Vol. 1, 651). Ibn 'Umar (raa) is also reported to have said that after an individual pays zakah, he cannot be blamed even if he keeps his wealth deep down in the soil. The same is the view of Jabir and Qurtubi, the interpretors of the Qur'an (Qurtubi 1952, Vol. 8, 125)."

However, Dr. Zaheer opines that the above view "does not seem to be consistent with the teachings of the Qur'an. The message these verses are conveying clearly suggests that wealth is not meant to be accumulated, but to be spent in Allah's way."

2. Saving cause Bukhl (miserliness). A Muslim is ought to spend whole-heartedly for the sake of Allah. One should not be a niggard (a miser), for Allah does not likes a niggard. Allah says:

هَاأَنْتُمْ هَؤُلاءِ تُدْعَوْنَ لِتُنفِقُوا فِي سَبِيلِ اللَّهِ فَمِنْكُمْ مَنْ يَبْخَلُ وَمَنْ يَبْخَلْ فَإِنَّمَا يَبْخَلُ عَنْ نَفْسِهِ وَاللَّهُ الْغَنِيُّ وَأَنْتُمْ الْفُقَرَاءُ

“Behold! You are those who are called to spend in the Cause of Allah, yet among you are some who are niggardly. And whoever is niggardly, it is only at the expense of his own self. But Allah is Rich and you are poor.” (47:38).

Bakheel is a person who keeps his wealth close to his heart and does not spend (on others). Whenever he comes across any needy person, he will ignore him; the love and attachment to his wealth does not let him spend it on the needy or on any noble cause. This characteristic is called Bukhl.


3. Islam condemns a massing wealth. Attachmentto wealth lead to fisq and Shirk. The beautiful verse below is absolutely clear about its message. This is how wealth may lead a person towards Fisq. Love for wealth also leads to a type of ‘Shirk‘, known as ‘Shirk-fil-Mahabbah‘.

قُلْ إِنْ كَانَ آبَاؤُكُمْ وَأَبْنَاؤُكُمْ وَإِخْوَانُكُمْ وَأَزْوَاجُكُمْ وَعَشِيرَتُكُمْ وَأَمْوَالٌ اقْتَرَفْتُمُوهَا وَتِجَارَةٌ تَخْشَوْنَ كَسَادَهَا وَمَسَاكِنُ تَرْضَوْنَهَا أَحَبَّ إِلَيْكُمْ مِنْ اللَّهِ وَرَسُولِهِ وَجِهَادٍ فِي سَبِيلِهِ فَتَرَبَّصُوا حَتَّى يَأْتِيَ اللَّهُ بِأَمْرِهِ وَاللَّهُ لا يَهْدِي الْقَوْمَ الْفَاسِقِينَ

“Say: If your fathers (i.e. parents), your sons (i.e. kids), your brothers (i.e. siblings), your wives (i.e. spouses), your kindred, the wealth that you have gained, the commerce (business) in which you fear a decline and the dwellings in which you delight are dearer to you more than Allah, His Messenger and Striving hard & fighting in His Cause, then wait until Allah brings about His Decision. And Allah guides not the people who are Al-Fasiqun.” (9:24).

4. No concept of saving in Islam. Islam promotes a balance; do not waste the wealth mindlessly, save it for genuine expenditure. In fact, the problem starts when the sole ambition becomes saving money. We earn and accumulate wealth with a sole criterion of saving for future; keeping the money idle in bank accounts, gold and silver beautifying the vaults; and soothing his/her nafs regularly by enjoying the gradual growth in accumulated wealth.

وَيْلٌ لِكُلِّ هُمَزَةٍ لُمَزَةٍ “Woe to every slanderer and backbiter;

الَّذِي جَمَعَ مَالاً وَعَدَّدَهُ “Who has gathered wealth and counted it.”

CONCLUSION.

In this article, i highlighted the fact that the concept of saving has divided Muslims into two opinions; those who support and those who oppose. In the effort to gather the two opising views, it appears to me that those opposing are few(doesnt mean wrong), compared to those who accepts saving as permissible and virtue in Islam. Furthermore, i have not come accros a Sharia scholar who condemn saving per se, but rather niggardness and failure to spend money where it matters mosts. It is my opinion that this subject needs Muslim scholars to research and review both arguments in order to establish the matter in clear terms for English readers and common man who doesnt have tools to analyse this issue in detail. Hence, i leave it to you, to review both arguments and come up with the stronger case for the public or at least for yourself.

May Allah guide us! Ameen.