ONE-THIRD RULE IN FAMILY FINANCIAL PLANNING: INSIGHTS FROM HADITH MUSLIM

Abstract

This paper explores the application of the "One-Third Rule" from Hadith Muslims in family financial planning. Through a thorough examination of existing literature, it delineates three essential components of personal financial management: charity, consumption, and investment, with each allocated a one-third portion. This allocation strategy aims to foster a balanced approach to financial decision-making, where material needs are harmonized with spiritual and long-term financial objectives. By adhering to this principle, individuals and families can cultivate a comprehensive strategy that optimizes resource allocation. The research underscores the importance of mindful spending, prudent investment, and regular charitable giving in achieving financial stability and fulfillment. Moreover, it emphasizes the holistic nature of financial planning, integrating both material and spiritual dimensions to ensure a fulfilling and purpose-driven financial life. This paper contributes practical insights for individuals and families seeking to align their financial practices with Islamic principles. It provides a structured framework for decision-making, enabling them to navigate the complexities of financial management with clarity and confidence. Overall, it highlights the relevance and applicability of the "One-Third Rule" in promoting financial well-being and sustainability within families, offering guidance for informed and conscientious financial stewardship.