Mirza Yawar Baig – Seerah Solution Money Matters #01
AI: Summary ©
The importance of Islam in preventing financial fraud is discussed, including the ban of certain activities and restrictions on activities such as drinking alcohol and eating pork. The US dollar is a piece of paper and the real value of a piece of paper is the same as the price of a coin or boat. The importance of recording transactions and privacy and social interaction is emphasized, as well as the need for healthy economies and the importance of recording transactions and not borrowing money. The speakers emphasize the importance of notifying people of Iran's she's-broying policy and hesitant to give money to anyone.
AI: Summary ©
Assalamu alaikum warahmatullahi wabarakatuhu.
We come
to
the next aspect of the seerah of Rasulullah
sallallahu alaihi wasallam and that is the issue
of money.
The basic principle in Islam, Islam does not
prevent us from acquiring wealth.
So let me clarify some things.
There is nothing romantic about poverty.
Poverty is a test.
It is a huge test.
Obviously money and wealth is also a huge
test.
And may Allah save us from both.
And may Allah become sufficient for us inshallah.
So Islam enables, allows, permits, even recommends the
acquisition of wealth.
Does not prevent that.
Islam is interested in the method of acquisition
and the place of expenditure of wealth.
So Islam doesn't tell you for example that
you should acquire, you must make so much
money or you should not make so much
money.
Allah is not going to ask us the
quantum because Allah, Nabi Sallallahu alaihi wasallam said,
the pens have been lifted, the ink is
dried.
So what is your rizq has all, and
rizq is not only money, rizq is everything.
Rizq is your family, it's your children, it's
your education, your learning, your health, everything is
rizq.
All that a human being needs is part
of rizq.
But one of the big pieces of that
is wealth, is money.
So the overall quantum of money has already
been written.
Our choice is where do you want to
take it from and where do you want
to spend it.
So the questions about money on the Day
of Judgment, we will be asked a double
barrel question.
And that is where did you earn your
wealth from and where did you spend it.
So in Islam, the means and the end,
both are important and they must justify the
rizq of Allah swt.
There is a book of mine called Questions,
But What Will We Answer?
And in that I have written about the
questions in the cover in the grave and
questions on the Day of Judgment.
So the book is on Amazon, please take
it, read it.
I think there should also be a series
of lectures on this also if you want
to listen to that.
So go to our YouTube channel, I'll give
you the link and you can listen to
the lectures also.
But there is also another book of mine
called Risk, Ordained or Obtained?
That's the other question.
If it is written for me, why should
I work?
You know, people ask this question.
If everything is written for me, why should
I work?
There is an answer.
Alhamdulillah, there are answers to all of these
questions.
So ask the question.
It's very good to ask the question because
then we can answer the question.
So there is no limit and there is
no restriction on how much wealth you can
earn.
You are welcome to make the effort, but
make sure the means is halal and the
ending where you spend it is halal.
Halal earning does not mean that you can
spend it in haram actions.
And haram earning does not mean that I
can make it halal by giving a donation
to the masjid, no.
It does not become halal.
And your donation also, the masjid can accept
it because it's a gift to the masjid,
but it will not get you any hasarat
before Allah.
Allah does not accept it.
There is no zakat on haram wealth.
And then don't say Alhamdulillah, nice, I'm free
from zakat and everything, haram, no.
It means that you will be punished for
that, that zakat will not be accepted by
Allah subhanahu wa ta'ala.
And the thing to understand is, you might
say, well, why is it such a big
deal?
Take for example, if you take all the
things which Allah subhanahu wa ta'ala has
prohibited.
Allah subhanahu wa ta'ala has prohibited eating
of dead.
Allah prohibited blood, to consume blood.
Allah prohibited eating of pork and so on
and so on and so on.
Different prohibitions, alcohol, all kinds of intoxicants and
so on.
And Allah also prohibited riba, He prohibited interest
-based dealings.
If you take all of these prohibitions and
you see what is the punishment for this
and this and this and this and this,
you will find that the biggest punishment, by
far the biggest punishment is for dealing with
interest.
Because Allah did not declare war on the
one who is consuming alcohol.
Allah did not declare war on the one
who committed murder.
Allah did not declare war on the one
who eats pork.
Allah did not declare war on the one
who is doing, you know, these kinds.
That does not mean these things are okay,
they're not okay, they are haram, they should
not do them.
It is kabair, if you do the kabira
deliberately, it is kufr.
But Allah did not declare war on them.
But Allah declared war on his behalf and
on behalf of the Rasul sallallahu alaihi wasallam
on the one who deals in interest.
They asked Rasul sallallahu alaihi wasallam, what is
the meaning of dealing in interest?
Because the question is, I am only borrowing,
I am not lending money.
I am borrowing because I need to build
a house, I need to buy a car.
In America a car is something which I
need.
It's not a luxury because there is no
public transport, so I need a car, so
I need the money.
A question that will always be asked, you
need a car.
You don't need a Lexus 500X.
That's not a need.
You need a car.
Buy a third-hand Toyota Camry, it will
stay with you till you die.
You will die before it runs out.
It's an extremely well-engineered machine, costs you
$3,000.
You don't need a loan for that.
So it's our desires which create the problems.
I want a $50,000 car, of course
you will need a loan.
I get the same car for $5,000,
I don't need a loan.
So that's a different discussion.
Point being here, Allah declared war on the
one who deals with interest.
Ask why?
Because interest destroys wealth.
Interest does not create wealth.
When a person is getting interest, this person
is not producing anything.
How does an economy grow?
Economies grow by the production of goods and
services.
This bottle of water did not exist.
I made the bottle of water, so I
added this to the economy.
This bottle of water was selling for $1,
I am now selling it for $2.
It does not add anything to the economy.
I am only increasing inflation.
I am not building the economy.
These are the basic principles of economics we
should understand.
Inflation does not increase the economy.
Inflation actually makes it more difficult for people
to believe, which is what is happening in
this country and worldwide.
You have 10 apples, each apple costs $1.
Now the same 10 apples, each apple costs
$2.
What is the size of the economy?
10 apples.
At $1, what was the size?
10 apples.
At $2, what is the size?
Same 10 apples.
Now the economy is such that I am
now paying $10 per apple.
What is the size of the economy?
Same $10.
The same 10 apples.
What has gone up?
Inflation.
The perceived notional value of the apple has
gone up from $1 to $10.
Does it make the apple any sweeter?
Is it better for health?
Can I eat a little piece, only one
gram?
No.
An apple is an apple is an apple.
Period.
So Islam says, don't fool yourself.
So in Islam, money, we understand this very
fundamental principle.
In Islam, money is not a commodity for
trade.
Commodities for trade are things that you produce.
You do not produce money.
Money is the notional value of something which
has already been produced.
When I am selling you a house, what
have I produced?
The house.
The house was not there.
There was flat land.
I built a house.
So the house is something which I created,
which I produced.
Now whether I give the house to you
for free or I charge $1,000 for
it, or I charge $100,000 for it,
the house is the house.
So what is this $1,000 and $100
,000?
This is notional value of the house.
I am estimating this house cost $100,000.
So say for example, say a house is
there, my brother comes.
Jawad comes and says, Jawad bhai, I need
a house.
Please take it.
How much?
Take it.
Now I want to pay for it.
You paid for it already.
How?
The day you were born you paid for
it because you are my brother.
What payment do you want to make?
You are my brother.
Take the house.
So now, has the value of the house
changed?
No.
The house is the house.
The value is not, I gave it away
for free because I love him.
But that does not change the value of
the house.
A strange person comes, how much for the
house?
$1,000,000.
Has the value changed?
No.
The house is the house.
So Islam says money is not a commodity
for trade.
You cannot buy and sell money.
Money is the means of trade.
It's not a commodity to be traded.
So you say, well, okay, so now somebody
needs a lot.
Somebody comes to me, I need a lot.
Can I lend him money?
Yes, you can lend him money.
No problem.
How can I get a return on my
money?
You cannot get a return on your money.
Because there is no, that lending is not
a business transaction in Islam.
Please understand that.
The lending, can I lend in Islam?
Yes.
Yes, you can lend in Islam.
Can I lend in Islam as a business
transaction?
No.
So what is lending in Islam?
It's a transaction to help somebody in difficulty.
To help someone in difficulty.
That's the purpose of lending.
That is why if you take the structure,
the usul of lending, Allah says, If you
lend, don't take interest, number one.
Which means there cannot be any monetary return
on that amount.
I give you $100,000.
How much am I allowed to take back?
Same amount I give you, $100,000.
Now I can argue with you or you
can argue with me and say, the NPV,
net present value of that $100,000, ten
years from now is going to be, according
to the inflation, it will drop.
So really to give me back my $100
,000, which you took in 2024, to make
it equal to that, in 2034, you should
be giving me say, $125,000.
That is equivalent to the $100,000 which
I give.
Logically, mathematically, in terms of NPV, it makes
sense, in terms of Islam, it is haram.
So Allah does not know inflation, Allah does
not know NPV, Allah does not care about
all that.
That is why Allah says, this is the
garbage that you have created because you invented
paper money.
There is no inflation if you trade in
gold.
Somebody did a wonderful, in the Khatira, I
mentioned this, I think, either in the Khatira
or after in the question and answer.
Somebody made this calculation, they said that the
price of a sheep or a goat, in
the time of Rasulullah sallallahu alaihi wa sallam,
1400 years ago, if you pay the same
price for a sheep or a goat in
gold today in America, you will pay exactly
the same amount.
No difference.
In terms of gold, the value hasn't changed.
In 1400 years, there is zero inflation.
So, inflation is our creation.
Inflation is the creation of fiat money.
What is the US dollar?
And I am using the word US dollar
only as a, to illustrate, the same thing
applies to the Pakistani rupee or the Indian
rupee or the riyal or the dirham, everything
is fiat money.
So, what is that US dollar?
It's a piece of paper.
It is a piece of paper.
What gives the paper value?
The fact that it is called a US
dollar.
The fact that the United States government guarantees
it to you.
Is the United States government going to be
there, United States government forever and ever and
ever?
No.
Nobody is forever.
So, what is the real value of the
US dollar?
It's the value of a piece of paper
which is, I don't know what is the
dimension, 6 inches long, 3 inches wide or
something.
Inflation is the result of this, of fiat
money.
Allah is not interested in inflation.
So, Allah SWT says, if you lend the
money, take back only the amount you lend.
Allah did not say, take back the amount
plus the inflation, factor in the inflation, factor
in net present value, no.
What you gave, you take back.
Only that much.
That's one thing.
Then Allah SWT says, but at the time
of returning, if the person has difficulty, be
kind towards him.
If he wants more time, give him more
time.
How much more time?
As much as he wants.
Ya Allah, but I will be dead before
he returns it.
Sure.
Sure, you won't be dead.
And then on top of that, Allah SWT
says, but if you forgive that, that is
better for you.
So, it is nice.
I lend the money.
The chap says, he will give it back
to me.
I don't take it back.
I cannot put pressure on him.
I am supposed to be kind.
He wants time, I give him time.
And then on top of that, He says,
just give it off and forget about it.
Does this look like a commercial business model
to you?
Can you run any business on this model?
Tell me.
No.
Impossible.
This model is contrary to every commercial business
principle.
What is business?
Business is, I have something which is worth
so much, I loan it, I lend it
or I sell it for a higher amount,
I get profit.
That is called business.
That is called positive ROI.
If I have a business model which is
giving me negative ROI, it's not a business.
It can be a philanthropic organization, it can
be a charity organization, it can be somebody
who is wanting to become bankrupt as quickly
as possible, but certainly it is not a
business model because the ROI is negative.
Return on investment is negative.
Money is never meant to be traded in
Islam.
Simple as that.
So, what should you do with money?
Allah SWT says, use the money to help
your brother and sister.
Somebody is in need, give it to him.
He returns it to you, Allah will return
it to you, forget it.
Allah will return it to you.
Money is to be helped.
Second thing you might say, okay, this is
fine, but I don't want to go there.
I still want a return on my money.
Good.
Then what must you do?
If a person asks money for a business,
then you say, okay, I'm not lending you
the money, but I will buy stock in
your business.
I am a venture capitalist.
I am investing in your business.
Profit and loss.
If it goes up, it goes down.
I am also feeling the pain.
I am also feeling the happiness.
This is permissible.
No problem.
Now, the benefit of that is, if I
am lending money to somebody as a venture
capitalist, and if I have bought stake in
that person's business, then I want to make
sure that business succeeds.
So not only will I just give the
money and forget it, I will go and
ask him everything is okay.
Do you need my help?
You are selling these things.
You know, you're selling these bottles.
I know a lot of hoteliers.
They buy this water.
I'm going to take you and get you
introductions to all the hoteliers.
Right?
I want to make sure your bottles sell.
I will take all this interest.
No banker will ever do any of that.
Never.
Find me a banker who will open doors
for you.
Nobody.
As far as he is concerned, I've given
you the money.
Give me the monthly installment.
If you don't give me the installment, I
come foreclose.
You are on the street.
Salaam alaikum.
No problem.
I'm gone.
After the subprime crisis in this country, I'm
not sure if the figures are right today,
but after the subprime crisis in this country,
there was a time when the number of
foreclosed bank houses, empty houses lying, were three
times the number of homeless people on the
street.
Which means that every homeless person could have
been given three houses, not one.
Makes zero sense, right?
So here is a bank who has loaned
money to someone, that poor fellow living in
the house, he would have paid something, sometime,
somewhere.
No, no, no.
I kick you out because you didn't pay
those installments.
Go on the street.
I don't care.
The house, I lock up.
The house is deteriorating.
It is falling apart.
It has no value.
I as a banker, as the so-called
owner of the house, I can't even sell
the house.
Who will buy those foreclosed houses?
Nobody.
Almost no one, right?
Except people who are trying to turn them
around or something like that.
I don't care.
As far as I'm concerned, I have foreclosed.
So, in my book of accounts, I can
write it off as a bad loan.
Islam says no.
We need healthy economies.
We need good economies.
We need good societies where people are concerned
about each other.
It's not only about the money.
It's about people's human relations.
So, you want people to care for each
other.
You want people to help one another.
We don't want people to be parasites of
one another.
We were coming here, we saw a dead
deer and four black vultures eating the deer.
This is not Islamic society.
Islam doesn't want the society to be like
that.
The society is dead and there are vultures
eating it.
No.
It says you want to be alive.
So, money is not a transactional commodity.
Final point on this before we move on
to this is the issue of recording transactions.
The longest ayat in the Quran is in
Surah Al-Baqarah.
I think it's 282, no?
282.
Ya ayyuhal nazeena aamanu idha tadayantum bidayni ila
ajallim musamma.
To the end.
It is the full page in the Usmani
script and it's 15 lines.
Longest ayat in the Quran.
What does it deal with?
Recording of transactions.
Allah swt says record the transaction.
Have two witnesses.
And if there is no witness, then Allah
is the witness, but ideally record the transaction
and have it.
Now think about this.
Today we seem to think in our cultures
that if you record the transaction, we think
that this is an insult to me.
What is the need to write it down?
You don't trust me.
Rasulullah sallallahu alaihi wa sallam owed somebody some
money.
So he returned it to him.
The man was going away, he said, come
here.
He said, count it.
He said, Ya Rasulullah, you have given me
the money, how can I count it?
Rasulullah sallallahu alaihi wa sallam said, no, it's
not a matter of respect.
He said, count it because I am human,
I could have made a mistake in counting.
You will go away and then you will,
in your heart, you will not come back
to me, but in your heart you will
think the Rasulullah sallallahu alaihi wa sallam shortchanged
me.
He said, I will not know because I
have given you the money and you will
hold this in your heart to say the
Rasulullah sallallahu alaihi wa sallam did not give
me the correct amount back.
So he said, count it.
Today if I give some money to somebody,
he counts it, I feel that's what.
I am insulted.
This man has no trust.
No, the man is following the sunnah of
Rasulullah sallallahu alaihi wa sallam.
He has trust.
He is following the sunnah of Rasulullah sallallahu
alaihi wa sallam.
Count the money.
Record the transaction.
It's so, this happens so many times.
You know, two people have a transaction.
I borrow some money, I do something.
There is no record because we are close
friends and so on.
How can I ask my brother to write
down, no problem.
Then I die.
I am dead.
I owe money to the brother.
There are no witnesses.
So now he will wait for some time,
hoping that, you know, the wife or the
children, whoever will pay back.
But the wife and the children don't pay
back because they don't even know.
They don't know what transaction I made with
my friend.
So after some time he comes and he
says to my wife or to my children,
you know, your father owed, they say what?
He never told us anything.
How can you say my father owed money
to you?
So now even the taluqat, even the relationship
between the families, now the wife says, oh,
this man, my father died, now this man
is trying to deceive us.
Or that other poor man, he should say,
well, you know, this is my fate, khalas,
forget it, I have lost the money.
Islam says there is no need for all
of this drama.
Record the transaction.
This business of loans is so important.
Rasulullah sallallahu alaihi wa sallam used to, when
they used to bring janazahs to perform salatul
janazah, he would ask, does this person, did
this person owe anybody any money?
If they said, yes, ya Rasulullah sallallahu alaihi
wa sallam, he would say, is there anybody
here who is taking responsibility for that loan?
And if they said there is nobody, he
would say, then you do the janazah for
your brother and he would walk away.
He did not do janazah.
Later on, when Nabi sallallahu alaihi wa sallam
had money at his disposal because of ghanima
and so on, then he would do the
same questioning.
Then he would say that I will pay
this loan.
This is on me.
He would take it on himself.
And then he would pay the janazah.
Now the point being that if somebody has
died owing money, then this can be a
means of, I am not saying you will
go to Jahannam, but definitely it is a
means of this person's entry into Jannah being
delayed.
It can become a barrier for this person
to enter Jannah.
Best rule in life, don't borrow money.
If you have to borrow money, make sure
the transaction is recorded, make sure you do
your best to pay it.
People come and ask questions.
Sheikh, can I go for Umrah?
I say, go.
Why are you asking me?
I am not paying for it.
No, no, no, Sheikh.
I have a loan.
I have to pay back the loan.
You have a loan to pay back and
you want to go to Umrah.
Is it halal, is it haram?
There are fiqh issues.
It is not haram if you have a
loan to go to Umrah.
It is not haram to go make Hajj.
It is not haram.
But my point is, does it make sense
for you to do that?
Nafl ibadah, which is Umrah, paying of the
loan is fardh.
So which you take receipt with?
Fardh.
Finish your loan, then go for Umrah.
Recording transactions, fardh.
Now, why does it even occur to somebody
that it may not be fardh?
Allah has revealed Quran on this.
When you know and I know, anything which
begins with Ya ayyuhallatheena aamanu is a hukum.
It is an order of Allah.
Here is an ayah which is a hukum
of Allah subhanahu wa ta'ala.
How can it be anything other than fardh?
Haikini?
Basic fundamental usur.
If something has been ordered in the kalam
of Allah and Allah started by saying, Ya
ayyuhallatheena aamanu, it is a hukum.
No argument about this.
It is fardh to record the transaction.
If you are not doing it, you are
not doing your fardh.
So please, make sure you record transactions.