How to become Rich

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Mansoor Danish

Channel: Mansoor Danish

Episode Notes

Episode Transcript

© No part of this transcript may be copied or referenced or transmitted in any way whatsoever. Transcripts are auto-generated and thus will be be inaccurate. We are working on a system to allow volunteers to edit transcripts in a controlled system.


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Assalamualaikum warahmatullahi wabarakatuh Hi everybody, and inshallah I'm back with another video today and we will be talking about some practical tips on how to grow money. Now if you would recall, in our last session that we had, where we spoke about the financial planning a very important aspect of growing your money, we have already been running the savings drive, and I will urge each one of you not to stop it. So if you're already in the month of March, you've received your salary you've received your income, it is time that you start saving that money as well, please Don't be in a hurry to spend that money. Okay, maintain the discipline that we have been doing it

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for the last six months. Discipline is one of the key to savings, you know, so one of the most important aspect of savings is discipline. And discipline is often an issue, which leads to us spending more than what we have. And that ends up in US borrowing money at interest rates. Well, today, we're not going to discuss much on financial planning. We've already done that in the last session. However, in today's video, we'll be talking about some practical tips on how we can grow our money. Many of you been asking me about investment plans and strategies and I have been telling you and I repeat myself, once again, it's not as simple as selecting any of the investment

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opportunities which are there in the market. Okay, it's important that you do a proper financial planning, you know what your risk appetite is, and insha Allah in one of the future videos, we'll talk about what risk appetite is, and how do we calculate risk appetite, it's so important for any investor to know where he is investing his money, what are the risks associated with that investment, and we often find, like in one of the recent Ponzi schemes that took place in the south, we found many people selling the property selling the ornaments. In order to invest their money with these Ponzi schemes, which were giving them 35 40% return per annum, they got carried away with the

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returns, they got lured by the returns. And of course, for people from the Muslim community, they were luring them with what is called halaal returns. And therefore, we must understand that everyone who comes and tells you that something is halaal in terms of return, you should not rush for it, you must identify the risks associated with such investments. Well, the first tip that I have as far as growing your money is concerned is ensuring that you don't engage in any debt. It is so important and in fact, the reality is I mean, we understand that the rebar is haram interest is haram. But with that being said, we know many, many individuals who end up taking interest based loans, whether

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it is for car home or anything, they end up taking interest based loans, say no to any form of interest based loans, say no to any loan, which does not bring in any benefit to you, you know, many people end up taking moved for useless purposes like spending on marriage. And you know, for the extravagance, absolutely non productive use of money. Okay, so please say no to debt, take a debt, which is a gray bar free it is interest free, and take a debt, which probably can give you some assets in return. For example, you can go for a Sheree a form of financing and Islamic financing, whereby you can buy a property you can buy a house, of course, we don't have those opportunities in

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India. But for those of you who are watching this in the Middle East and Far East, you have a lot of opportunities. The second most important tip that I have is being consistent in your savings habits and your investment habit. I'm going to combine the two. Of course, we are not touching on the investment today. But as we iterate the importance of savings, in order to grow your money, you need to save money, you don't become rich without saving money. You know, people say we want to become rich, you become rich when you start saving money. Saving is a very important tool through which you grow through which you your wealth grows. So being consistent in your saving habit is crucial. It's

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very important. And I'm going to stress that once again in today's session. The third important tool is when you have decided to invest your money. And this is where I refer back to some of these Ponzi schemes which are there in the market. When you are investing your money. Make sure that you spread your investments across different asset classes. Now what are asset classes, they can be investments done in gold, you could be buying silver commodities, you could be buying real estate, mutual fund shares, whatever it is, then you can buy but you need to ensure that you spread your risk across these asset class. You don't put all your money into one asset class because that's

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carries a huge amount of risk. And that takes us back to the example of the Ponzi scheme, where people were selling off their real estate that gold and silver they own the means to put all their money into this one single scheme. That is a highly risky proposition. And I urge each one of you never do that, spread it across different asset class. The next question that must come in your mind is how do I spread it across? How do I know how much to invest in real estate, gold mutual fund shares, and so on and so forth. For that we have the investment profiling, which has done the risk profiling rather, which is done on the basis of the risk profiling, we advise on how do you spread

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your money across different asset class. Okay, now, of course, we're not touching upon the risk profiling today. But just keep this in mind for your future reference. The fourth advice that I have is that you need to start investing as early as you can, and investing on a smart basis, which means you have to of course, not just blindly go ahead and buy any share which is available, or any mutual funds which are available, you must keep in mind, the political situation in the country, the legal situation, the economic factors, all of this should be considered before you invest your money, you don't just go ahead and invest your money in one asset class, because it says it's going to offer

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you Sharia based returns or interest free returns, you have to take into account all the factors the political, the legal, the social, the economic, the what they call the pestel. You know, political, economic, social, technological, legal, environmental, keep all of these factors in mind, before you invest your money, and you invest as early as you can, and you haven't yet started, you start today. But for those of you who are young people out there who are in their 20s start investing today, I mentioned in one of my last videos about the compounding effect, that is the benefit that you gain. Compounding is a system by which the more often you invest, the more regular you are, and the more

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frequency you have in terms of your investment, the chances of the money growing and multiplying is higher. So the effect of compounding is more when the frequency the term of investment, the tenure of investments are more as well.

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Of course, the last couple of advice that I have is that you need to of course, keep your fear aside when you're investing. Now, it may be that you wish to invest in certain instruments, and you're being lured by the high percentage of returns that they are offering. But some people are apprehensive. They want to invest but they they look for risk free returns. Understand, if you are a Muslim investor, from a Sharia point of view, you are not allowed to invest into anything which says no risk. Risk has to be borne by both the parties both have to take risks, and you can engage in risk based returns.

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Keeping in mind of course, what are the risks involved? You must know what are the risks involved? And must know what are the risks that both the party are going to bear? That's very important. And of course, seeking an expert advice, it's important that you seek someone who is an expert in the field rather than just relying on what your friends have been doing. We often do that, and we hear from our friends, where have you invested your money, a friend comes and gives you an excellent feedback, and we all rush to invest there. That's not how you invest, you have a different psychology towards investments towards risk than your friend, you need to understand what your risk

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is, what your

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fears are. And and you need to therefore do a risk profiling and you will see invariably, the way you react to a situation and the way a friend reacts will be different. In fact, the way you react and the way your brother your blood tie your own brother reacts will be different. So when two people react differently in a same situation, how can they base their investments in a similar instrument just on the basis of feedback, you shouldn't be doing that you must seek expert advice. And lastly, one of the most sharp and here is the guarantee. Here is the guarantee which I'm offering you in terms of growing your money. All this which I mentioned is theoretical, can be

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applied, you might see some returns come in the long run, sometimes it may not come however the next tip which I have is a short shot for growing your money and that is increasing giving your charity to the people who are needy, the Almighty God Allah subhanaw taala has articulated in the Quran that he will give reward he will give increase in charity anyone who engages in charity his risk will be increased his his wealth will be increased his blessings will be increased and when

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I say this risk does not in Arabic only mean money, it could mean everything which you require for your existence, your food, your clothing, shelter, everything is included your money, for education for your children, and so on and so forth. Everything your wife, your children, everything is included in risk. Allah will give you an increase in it, he'll give you Baraka and it will give you blessings in it. If you want that blessings if you want to grow the real growth, then increase in sadaqa give money out in charity. Do not be stingy when you find somebody who's poor and needy, take out your money and give it you don't have to hold it back. You don't have to wait to give out your

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soccer and we see that many people restrict their charity only to the compulsory soccer that shouldn't be the case increase in soccer increase in other form of charity as well. This for sure will give you a guaranteed return whether in this life or in the next life for sure inshallah Tada. With that we will conclude the session. If you have any questions, please feel free to share it with me. You can post it in the chat box. And if you're watching this live on youtube, I urge you please go before you leave this video, subscribe to my channel and share this video was Salam Alaikum warahmatullahi wa