:salam2:
I'm here to share an asset allocation system that I've planned for myself based on the pyramid priority and some ayats from the Quran.
Please take into account that this is not financial advice for anyone. I am not an Islamic financial advisor. You would have to seek those certified with Islamic Financial Planner (IFP). I just have an education in finance, and I work in a bank (don't trust bankers! haha). Here's a link to an IFP
Based on the priority pyramid, we should first focus on creating a positive cash flow by not spending all our income. Useless debt should be taken care of (zero consumer debt, not including mortgages). Only then we will have the ability to save.
Saving is essential if we try to learn from the story of Prophet Yusuf (alayhi-salaam) in surat Yusuf. The dream interpretation of the drought where famine will strike a nation. Saving through managing consumption became essential for the nation so that they would not suffer as much had they mismanaged. When unfortunate circumstances hit, it will consume everything. When the land stop producing crops, the nation would not be able to feed the people nor the livestock.
Just like when you fall sick, it will consume your body and your money (hospital, medical bills). Or maybe when the economy tank, you become jobless, soon unemployment will start to consume everything.
So here's my plan in an awesome MS Paint illustration:
So I imagine "saving" as the foundation and roof of the house. If the roof collapse, rain and other things will ruin everything inside the home, including the foundation. If the foundation is weak, the whole house will collapse. The roof is the "dry-season savings", to act as a buffer should something happen and also protect your savings.
So, this is what I am currently focusing on with my money. Building a foundation and roof.
Hopefully it is of use to someone.
I'm here to share an asset allocation system that I've planned for myself based on the pyramid priority and some ayats from the Quran.
Please take into account that this is not financial advice for anyone. I am not an Islamic financial advisor. You would have to seek those certified with Islamic Financial Planner (IFP). I just have an education in finance, and I work in a bank (don't trust bankers! haha). Here's a link to an IFP
Based on the priority pyramid, we should first focus on creating a positive cash flow by not spending all our income. Useless debt should be taken care of (zero consumer debt, not including mortgages). Only then we will have the ability to save.
Saving is essential if we try to learn from the story of Prophet Yusuf (alayhi-salaam) in surat Yusuf. The dream interpretation of the drought where famine will strike a nation. Saving through managing consumption became essential for the nation so that they would not suffer as much had they mismanaged. When unfortunate circumstances hit, it will consume everything. When the land stop producing crops, the nation would not be able to feed the people nor the livestock.
Just like when you fall sick, it will consume your body and your money (hospital, medical bills). Or maybe when the economy tank, you become jobless, soon unemployment will start to consume everything.
So here's my plan in an awesome MS Paint illustration:
So I imagine "saving" as the foundation and roof of the house. If the roof collapse, rain and other things will ruin everything inside the home, including the foundation. If the foundation is weak, the whole house will collapse. The roof is the "dry-season savings", to act as a buffer should something happen and also protect your savings.
So, this is what I am currently focusing on with my money. Building a foundation and roof.
Hopefully it is of use to someone.