1. ISLAMIC FINANCIAL
LITERACY
PRESENTED BY NAVAID AZIZ

2. IS WEALTH GOOD OR BAD
“Your wealth and your children are an adornment for you”
“Indeed, your wealth and your children are a trial for you so be
careful…”

3. WEALTH IS A TRUST
Ibn Mas’ud reported: The Prophet, peace and blessings be upon him, said, “The son of Adam will not be
dismissed from his Lord on the Day of Resurrection until he is questioned about five issues: his life and
how he lived it, his youth and how he used it, his wealth and how he earned it and he spent it, and how he
acted on his knowledge.”
Source: Sunan al-Tirmidhī 2416

4. WHAT DID THE PROPHET SAY?
The poor amongst the emigrants came to the Messenger of Allah (‫)ﷺ‬ and said: The possessors of great
wealth have obtained the highest ranks and the lasting bliss. He (the Holy Prophet) said: How is that?
They said: They pray as we pray, and they observe fast as we observe fast, and they give charity but we
do not give charity, and they set slaves free but we do not set slaves free. Upon this the Messenger of
Allah ( ‫ﷺ‬
( said: Shall I not teach you something by which you will catch upon those who have preceded
you, and get ahead of those who come after you, only those who do as you do being more excellent
than you? They said: Yes, Messenger of Allah. He (the Holy Prophet) said: Extol Allah, declare His
Greatness, and Praise Him thirty-three times after every prayer. Abu Salih said: The poor amongst the
emigrants returned to the Messenger of Allah (may peace upon him) saying: Our brethren, the
possessors, of property have heard what we have done and they did the same. So the Messenger of
Allah ‫ﷺ‬
( ) said: This is Allah's Grace which He gives to whom He wishes.
Source: Sahih Muslim 595

5. WEALTH IN YOUR HAND AND NOT IN YOUR HEART
Wealth is a magnifying glass

6. THE PROPHETIC MENTALITY
"No man earns anything better than that which he earns with his
own hands, and what a man spends on himself, his wife, his child
and his servant, then it is charity.”
Source: Sunan Ibn Majah 2138

7. STORY OF ABDUR-RAHMAN BIN AWF

8. BE ONE THAT GIVES
Abdullah ibn Umar reported: The Messenger of Allah, peace and
blessings be upon him, said, “The upper hand is better than the
lower hand. The upper hand is one that gives and the lower hand is
one that takes.”
Source: Ṣaḥīḥ al-Bukhārī 1429, Ṣaḥīḥ Muslim 1033

9. ZAKAT
Amount needed = Nisab = Approximately $6000
Time frame = Have it in your possession for at least 1 Islamic Year
6000 * 2.5% = $150

10. TO WHOM DO WE GIVE OUR ZAKAT?
Zakāh is only for the poor and for the needy and for those
employed for it and for bringing hearts together [for Islām] and for
freeing captives and for those in debt and for the cause of Allah and
for the destitute - an OBLIGATION by Allah. And Allah is Knowing
and Wise. (9:60)

11. THE IMPORTANCE OF STAYING HALAL
Abu Huraira reported: The Messenger of Allah, peace and blessings be upon him, said,
“O people, Allah is pure and He only accepts what is pure. Verily, Allah has commanded
the believers as He has commanded His Messengers. Allah said: O Messengers, eat
from wholesome foods and act righteously, for I know what you do (23:51). And Allah
said: O you who believe, eat from wholesome food We have provided for you,” (2:172).
Then, the Prophet mentioned a man who traveled far, becoming disheveled and dusty
and he raises his hands to the sky, saying, “O Lord! O Lord!” Yet his food is unlawful, his
drink is unlawful, his clothing is unlawful, and he is nourished by the unlawful, so how
can he be answered?
Source: Sahih Muslim 1015

12. WAYS TO INCREASE YOUR RIZQ
Istighfar Sadaqah Helping Others

13. BUDGETING AND SAVING
1- Stay within your means at all times!
2- Try to put aside your savings before your expenses.

14. NO TO RIBA

15. CASH FLOW QUADRANT

16. INVESTING GUIDELINES FOR SHARIAH COMPLIANCE
Qualitative Quantitative

17. QUALITATIVE
Alcohol and Marijuana
Tobacco
Pork-related products
Conventional financial services (banking, insurance, etc.)
Weapons and defense
Entertainment (ex: gambling, media, adult content)

18. QUANTITATIVE
After removing companies with non-compliant business activities, the remaining companies are examined for
compliance with certain financial ratios. Three areas of focus are leverage, cash, and the share of revenues derived
from non-compliant activities. All of these are subject to evaluation on an ongoing basis
Leverage Compliance. This is measured as:
Debt / Market Value of Equity (36-month average) < 33 %
Cash Compliance. Certain rules related to cash holdings must be met. These are: Accounts Receivables / Market value of
Equity (36-month average) < 49 %;
(Cash + Interest Bearing Securities) / Market value of Equity (36-month average) < 33%
Revenue Share from Non-Compliant Activities. In certain cases, revenues from non-compliant activities can be
tolerated, if they comply with the following threshold:
(Non-Permissible Income other than Interest Income) / Revenue < 5%

20. The Easy
Way

21. AVAILABLE HALAL ETFS
WSHR (Canadian)
HLAL (American)
SPUS (American)
SPRE (American)
SPSK (American)
The FTSE Global Equity Shariah
Index Series covers all regions
across both developed and
emerging markets, to create a
comprehensive Shariah compliant
indexing solution
WAHED
FTSE USA Shariah ETF
The fund tracks the FTSE Shariah USA
Index.
The SP Funds S&P 500 Sharia Industry
Exclusions ETF (SPUS) seeks to track the
performance of the S&P 500 Sharia
Industry Exclusions Index. Gain value-
conscious exposure to an S&P 500 ETF
composed according to AAOIFI
guidelines.
SP FUNDS
The SP Funds S&P 500 Sharia Industry
Exclusions ETF
WEALTHSIMPLE
The Wealthsimple Shariah World
Equity Index ETF seeks to replicate,
the performance of the Dow Jones
Islamic Market Developed Markets
Quality and Low Volatility Index

23. COMPARING THE ACCOUNTS

24. TAXATION

26. CRYPTO CURRENCY
1- Serves a function
2- Non-Inflationary
3- Not a ponzi-scheme

27. ISLAMIC FINANCE GURU

28. RESOURCES
Sh. Joe Bradford (Website, Youtube, Instagram, Twitter, Facebook)
Mufti Faraz Adam (Website, LinkedIn, some videos on Youtube)
Money Mentors (Good resource but not catered to Muslims
specifically.

29. CONCLUSION
1- Never prioritize your dunya over your akhirah. Don’t
compromise on your principles.
2- Budget and Save.
3- Invest early and often.
4- Learn and surround yourself with the right people.
5- Remember Allah and Allah will remember you.
This is presentation is for informational and educational purposes only. It is not to be considered financial advice. Always consult a professional.