Wealth management in the family is crucial to support the family functions. Even though managing finances isn’t easy, it’s also not impossible.
Managing family wealth and finances demands concentration and thoroughness, as well as ingenuity in managing it. This is because, as a family grows, it will have more needs.
Economic or financial troubles in the family frequently generate family strife. Islam has taught us about all facets of our lives, including how to manage our wealth.
Many Muslim families do not manage their family wealth according to Islamic guidelines.
This is due to a lack of understanding and awareness about wealth management with sharia-compliant processes in the community.
Family wealth management training
Ashabul Kahfi Islamic Center Sydney has just completed its round-one training in wealth management with sharia-compliant processes.
There were more than 30 participants in the training who joined from Sydney, Melbourne, Brisbane, and Indonesia.
This event was organised in partnership with Sakinah Finance, Indonesia’s leading forum on the subject of sharia family financial management, and Crescent Wealth, Australia’s first Islamic-compliant super fund.
Various topics such as understanding halal and tayyib wealth-income sources, understanding family needs in accordance with sharia goals, and understanding zakat obligations, alms, and waqf were discussed in the training.
This training also taught how to plan a surplus and overcome a deficit in the family finances such as in investment and debt. Also, how to reach goals like hajj, umrah, and college.
Also included in the training material is how to overcome financial contingencies such as protection in the form of takaful or insurance, managing pension funds, and inheritance.
All of the sessions were led by the expert trainers from Sakinah Finance; Dr Murniati Mukhlisin and Dr Luqyan Tamani, the co-founders of Sakinah Finance who also act as the main trainers for this training.
The training sessions
Dr Luqyan started the first session by discussing the basic principles of family management through understanding the Maqashid AlKhamsah: Hifdz Ad Diin (Maintaining Religion), Hifdz An Nafs (Saving Life), Hifdz al Aql (Preserving Intellect), Hifdz An Nasl (Protecting the Descent/family), and Hifdz al Maal (Keeping Wealth).
The first session also discussed various muamalah contracts, sharia contract principles, muamalah fiqh principles, and types of sharia financial contracts.
In the second session, the topic discussed emergency funds, how to make priorities according to sharia, and understanding the basic budget formula in sharia finance.
Meanwhile, in the third session, the discussion was more deeply about debt, taxes, grants, wills, zakat, and inheritance. And the last session discussed the investment system and sharia business characteristics. The training went smoothly and promoted active participation from all participants.
Numerous daily family financial questions were asked and discussed during the training. One particular topic that received a lot of questions was inheritance. Many participants were yet familiar with Islamic inheritance law.
At the end of the training, Dr Murniati concluded the training by discussing a topic on sharia business. She went on to explain how sharia business differs from capitalism, communist, or socialist firms in which sharia business prioritises the business idea of silaturahim.
She also added that in Islam, handling finances differ in the sense that before working to earn a living, one must plan to obtain money for the purpose of worship rather than simply amassing wealth.
In his closure remark, Dr Chalidin Yacob, the founder of Ashabul Kahfi Islamic Center expressed his gratitude for the sharing and training provided by Sakinah Finance to the Muslim community in Australia.
And inshaAllah, Ashabul Kahfi will again conduct a similar training (Round 2) after Ramadan. For participants who likes to join the second round of training, please send an email to [email protected] to express their interest.