INTRODUCTION
Truly, for every nation there is a trial, and the trial for my nation is wealth. (Jami’ al-Tirmidhi, no. 2336) – Prophet Muhammad (saw)
Long before the scientific enterprise of psychology, economics, and their ensuing marriage known as “behavioral economics,” the Qur’an and Sunnah introduced economic principles aimed at improving society and explicating the psychological mechanisms that influence economic behavior. The Islamic sources understood that human beings were not Homo economicus, meaning that they do not make purely rational economic decisions with unbounded rationality to maximize their satisfaction. Rather, the human being is prone to biases that lead to making suboptimal choices. Over the past few decades, behavioral economics and cognitive psychology have attempted to identify these biases and the cognitive and affective processes that influence economic choices, especially decisions involving risk and uncertainty. This paper aims to shed light on Islamic principles related to the psychology of wealth, with an emphasis on inculcating a philanthropic mindset and optimal decision-making. Rather than discuss Homo economicus, we focus on how Islam seeks to inculcate Homo islamicus, or the Muslim economic agent who thinks and behaves in accordance with the moral principles of Islam. (Murat Çokgezen, “Islamic Economics in Real Life: Do Muslims Give More Than the Others?,” 2016.)
Islam holistically addresses the spiritual and economic needs of individuals and societies. Amongst the foremost objectives of Islamic law is the preservation and development of the wealth of society. Additionally, the obligation of zakah as an economic pillar of worship highlights how wealth and worship cannot be separated. Furthermore, numerous aḥādiīh and verses of the Qur’an address how wealth should be acquired, spent, and invested. Regarding the acquisition of wealth, Prophet Muhammad صلى الله عليه وسلم was reported to have said, “Seeking lawful [wealth] is an obligation upon every Muslim.”(Ṭabarānī, al-Muʿjam al-kabīr, no. 9993.) He also prophesized that “A time will come when one will not care how one gains one’s money, lawfully or unlawfully.” (Ṣaḥīḥ al-Bukhārī, no. 2059.) Regarding investing wealth, ʿUmar ibn Khaṭṭāb advised, “Invest the wealth of orphans so that it will not be eaten away by zakah. ” (Mālik, Muwaṭṭaʾ, no. 592.) Regarding spending one’s wealth, the Prophet صلى الله عليه وسلمsaid, “Allah does not like for you to waste wealth, nor ask many unnecessary questions, nor spread gossip. ”(Musnad al-Bazzār, no. 8463.) Thus, a cursory glance at the Sunnah clearly demonstrates that financial matters were given substantial attention by the Prophet صلى الله عليه وسلم .However, the scope of financial guidance was not limited to legal directives about permissible and impermissible transactions. Rather, the Qur’an and Sunnah heavily focused on the psychology of wealth, which is a prerequisite to making appropriate economic choices. Additionally, through focusing on the psychology of wealth and reframing key economic concepts, Islamic guidance seeks to correct the cognitive and spiritual biases pertaining to wealth that lead to suboptimal and oftentimes harmful economic choices. However, before going into the Islamic perspective on wealth, we need to understand the economic culture that dominates our society today.
By Osman Umarji
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