financialtreat – will explain about Wealth Management Syariah that you will get in the following article. Let’s look at this article carefully!
Wealth management is the management of family finances. In conducting financial management, there must be financial planning to achieve goals, both short-term and long-term goals. The medium of achieving these goals can be through savings, investments, or allocating funds. With good financial management, it will not be stuck on unlimite desire behavior.
Good financial management or wealth management is measure by five components of a person’s ability to budget, save money, and manage expenses. The five components consist of being able to spend money as necessary, paying monthly obligations on time, planning finances for future needs, saving and setting aside funds for yourself and family. The purpose of financial management is actually reflecte in the day-to-day activities carry out by financial management.
Weatlh Management Syariah
Financial planning as the process of achieving one’s life goals through financial management in a planne manner. The purpose of life referred to in this case includes buying a house, saving, planning a retirement, increasing investment, and others. In simple terms, financial planning can be interprete as doing financial planning to achieve personal needs.
Through financial planning a person /family can understand relate to every financial decision made impacting other areas of the overall financial situation of the self and family. For example financial decisions can be taken through the purchase of investment products that generate a high rate of return and those returns are use to pay down debt faster.
The benefits of financial planning are huge because financial planning can be use as a tool by someone to achieve financial needs in the present and future. At its peak, everyone and family could achieve the goal of financial planning, which is financial freedom; Free from debt, fixe income flows from investments, and most importantly financially protecte from any risks that may occur.
Financial Planning in Management Syariah
Financial planning does not promise people to get rich suddenly, but rather on disciplining steps to control themselves and provide the best future financial conditions for themselves and their families efficiently and effectively in accordance with current financial capabilities in addition to the goals of wealth management according to namely:
- Maximize profits with the right decisions
- Maintain cash flow to be appropriate to pay all obligations
- Proper and optimal use of money so that efficiency is maintaine
- Wealth Management in Sharia Perspective
Wealth management according to the sharia perspective contains a deeper meaning than conventional management, namely how the treasure not only provides physical enjoyment but can also provide spiritual enjoyment. So that it is able to provide a complete balance between physical, emotional and spiritual from a human being.
Wealth management perspective of Shariah is the management of wealth base on Islamic laws or beliefs, of which there are basically two, namely the Quran and alhadist. Unlike conventional wealth management in which there is a financial life cycle in which a man lives his life until he dies, then he always needs a treasure that can be a capital so that he can live his life prosperously.
In Islamic wealth management, the financial life cycle above is not only about how he can accumulate or meet the living cost, but also how he gets the property, until spending it, it must all be in accordance with the guidance of the Qur’an and al-hadith. In the sense that the treasure obtain must be in a good way.
Bring me maslahat. Islamic family financial management is need in order to achieve sakinah finance. There are several points that must be known first before managing family finances in Islam must include five processes, namely:
Wealth creation is the process of how a Muslim or head of the family makes a living, the intende living is a living must be through a halal way in order to bring a blessing to the family.
In the process of wealth creation must be clear how a Muslim or head of the family makes a living. The intende living is a living must go through halal procedures in order to bring a blessing to the family. Such as not taking excessive profits, exploiting. It not forcing buyers to buy merchandise and providing uncertainty to customers. Not mixing good goods with goods that have been damage.
Wealth accumulation can be interpreted as a process by which a family optimizes the wealth obtaine to be accumulate for the long term. The thing that can be done is to rotate or invest part of his income in Islamic investment products such as sukuk, Sharia mutual funds. Meanwhile, the rill sector can be investe in the property by renting out a rente house, or boarding room.
The level in investing a person must have sufficient financial knowledge, sufficient experience and thoroughness to consider investment risks. Ignorance of basic financial concepts can be relate to low investment planning. When wrong in investing will certainly bring losses that are not small.
It means a process that protects property by a certain mechanism. This concept is in line with the purpose / maqashid sharia, namely the protection of maal and property. In addition, as part of the protection of the child’s future by providing sufficient property if the father (head of the family) dies while the child has not been puberty or has not been able to make a living on his own, protection that can be use is to prepare a number of assets that produce cash flow or assets that can be disburse when needed in addition to using the concept of takaful or Sharia insurance.
Wealth purification is the process of cleaning up treasures. This concept can be an advantage and differentiator in the Islamic wealth management system. Because the concept of purification does not exist in the concept of conventional wealth management. Wealth purification is setting aside some of the property to be distribute to the rightful can be through alms, infaq and zakat.
All zakat obligations must be pay, such as zakat from agriculture, zakat traden, zakat gold silver, etc. This is because from an Islamic perspective. In some of the treasures we have there are parts of people in need. And it can say that awareness of this obligation is still very low among Indonesian Muslims.
Wealth distribution or distribution of wealth is the process of circulating or distributing property from the owner to the party who is entitle to receive it either through the distribution process commercially or through a process that emphasizes aspects of social justice. The goal is to meet the needs of each Muslim individual’s life as well as to improve his welfare, human falah.
This understanding departs from the principle that the basic needs of each individual must be met and in one’s wealth there is the right of the poor, “And in their possessions there is a right for the poor who ask and the poor who do not have a share (do not ask)”. (Q.s. al-Dzariyat : 19).
Unlike the capitalist economic system that recognizes the existence of individual ownership. Each individual can freely accumulate and generate wealth with his ability. And there is no limit to utilizing and dividing his property, freedom of ownership unless limite only by the ownership of others.
The reach of each individual’s private property is limite only by the freedom of ownership of another individual. The individual gets justification for his possession base solely on the fact that he is human and does not interfere with the freedom of others.
This group detaches its thinking from the framework of values or norms. Giving rise to the injustice of income distribution and social jealousy. Economic behavior by not considering morals will give birth to acts of monopoly (ihtikar), hoarding (iktinaz). Interest withdrawal and others that can lead to injustice of income distribution.
Also Read Financial management:
- Managing Billionaire-style Family Finances
- Get acquainted with the Financial Pyramid of Planning a Retirement!
The principle of distribution applie by this capitalist system ultimately has an impact on the reality that the real rulers are capitalists (owners of capital and conglomerates). Therefore, it is natural that the policies issue by the government always. Favor the owner of capital or conglomerates and always sacrifice the interests of the people so that there is inequality. (injustice) distribution of income and wealth.
Unlike the capitalist economic system. The socialist economic system does not recognize individual ownership except in certain sectors such as simple tools and limite land. Or is there any transfer of wealth through inheritance. And investment thus causing the unfulfilling of justice in the distribution of income.
While islamic economics does not have the teachings embrace by the two systems. Islam builds its philosophy and system base on the principles of justice and freedom. Islam wants property to be truly distribute fairly and evenly. Property must function socially so that it can be enjoye by all societies while still recognizing property rights. And prohibiting monopolies because property functions socially. In addition, accumulating property can weaken people’s purchasing power and hinder market mechanisms to work fairly.
Well, from the explanation above, you already understand about Sharia wealth management? Good luck!