Islamic Worldview (24): Wealth in Islam — Hoard It or Spend It?

What Does Islam Teach About Wealth?

From the very beginning of the Quran, Allah lays down clear guidance on the behavior of the pious regarding wealth. Among their defining traits, as stated in Surah Al-Baqarah, is:

“…and spend out of what We have provided for them.” (Surah Al-Baqarah, 2:3)

This simple phrase encapsulates the Islamic approach to wealth: it is not for hoarding but for spending in ways that benefit oneself and society.

Hoarding wealth is strongly condemned in Islam. Allah warns those who amass wealth without using it for righteous purposes:

“And those who hoard gold and silver and do not spend it in the way of Allah — give them tidings of a painful punishment.” (Surah At-Tawbah, 9:34)

In contrast, spending wealth in the cause of Allah is considered one of the highest forms of worship and a cornerstone of the Islamic economic system.

Why Is Spending Essential in Islam?

Islam views wealth as a tool for the betterment of society and the fulfillment of divine responsibilities. The Quran reminds us:

“…and spend [in the way of Allah] out of that in which He has made you successors...” (Surah Al-Hadid, 57:7)

This verse emphasizes two critical points:

1. Wealth Belongs to Allah: Wealth is a trust from Allah, and humans are merely its stewards.
2. Purpose of Wealth: Wealth is not for selfish accumulation but for fostering growth, helping the needy, and achieving social balance.

The act of spending wealth in the way of Allah also ensures that wealth circulates, preventing economic stagnation and inequality.

The Blessings of Spending in Charity

Islamic teachings are replete with encouragement to give charity and warnings against neglecting this duty. One of the most poignant Quranic verses reflects the regret of a dying soul:

“So why did You not postpone for me a brief term so I would give charity and be among the righteous?” (Surah Al-Munafiqun, 63:10)

This verse illustrates how giving in charity is considered one of the most significant acts a person can perform. When someone looks back at life’s missed opportunities, the foremost regret is often the failure to spend wealth for the sake of Allah.

How Does This Relate to Islamic Economics?

The Islamic economic system thrives on the principle of wealth circulation. Unlike systems that encourage hoarding or unchecked accumulation, Islam promotes moderation and the continuous flow of wealth through:

• Zakat (Obligatory Charity): A fixed percentage of one’s savings is given annually to purify wealth and support the underprivileged.
• Sadaqah (Voluntary Charity): Giving beyond the obligatory Zakat is highly encouraged and carries immense rewards.
• Investment in Productive Ventures: Wealth should be used for trade, industry, and initiatives that benefit society rather than being idle.

These principles ensure that wealth does not remain confined to a few individuals but instead benefits the entire community.

A Reflection: What If You Had One More Day?

Imagine standing at the end of your life and being given a chance to return for one day to correct your deeds. What would you prioritize?

The Quran answers this poignant question: many would wish to give in charity. This teaches us the profound value of spending wealth in ways that please Allah and serve humanity.

Final Thoughts

Islamic teachings on wealth offer a balanced approach: neither indulgent extravagance nor stingy hoarding, but purposeful spending for the benefit of oneself and others.

As stewards of Allah’s provision, we are called to:

1. Recognize that wealth is a trust from Allah.
2. Use it to achieve goodness, both for ourselves and society.
3. Avoid the temptation to hoard, knowing it leads to spiritual and societal decay.

Let us reflect on the Quranic wisdom and realign our approach to wealth:

“Whatever you spend in good, it will be fully repaid to you, and you will not be wronged.” (Surah Al-Baqarah, 2:272)