Spending the Surplus
Could you explain the hadeeth:
"O son of Adam, if you spend the surplus, it will be better for you; and if you retain it, it will be bad for you. You will not be reprimanded for keeping what is enough for your need. Begin with those who are your dependents, and the upper hand (i.e., the one that spends in the way of Allaah) is better than the lower hand (i.e., the one that receives charity.)'' [Muslim].
The basic meaning of the hadeeth is:
If one spends the surplus (meaning you have taken care of your and your family's needs) then it is indeed better for you as you will have earned rewards for doing so. However, if you were to hold on to it, then it may be bad; because if you were holding back from helping when it is wajib, you would be deserving of punishment. And if you were holding back from giving while it was mustahabb (liked) then you deprived yourself of rewards of rewards and benefits in the hereafter and no doubt, that is bad.
What is surplus?
Surplus is whatever is in excess of your needs. It is the money that is left or excess after saving for your basic needs and those of your family.
Is saving money not encouraged?
Saving for a "rainy" day, within reason, is permitted and logically even commendable so you will not have to depend on others. However, one must be reasonable and not turn that into hoarding while not spending on the poor and needy at all.
What about saving money in order to make a larger purchase, for example a house or car?
One might be saving for a home or vehicle or some other item; that is permissible as long as it is not extravagance. The key is to not forget spending on the poor and needy. Even while saving, one should make an effort to spend in the way of Allaah.
Is there a standard we can compare to in order to evaluate whether we are spending and saving ‘reasonable’ amounts?
We should not necessarily look at the standards in a place and at a time since sometimes a people are extravagant and it becomes a norm at that time and place.
Narrated Ibn 'Abbas, I heard the Prophet saying, "If the son of Adam (the human being) had two valley of money, he would wish for a third, for nothing can fill the belly of Adam's son except dust, and Allaah forgives him who repents to Him." [Volume 8, Book 76, Number 444]
Rather, one should look carefully at their situation and never forget that they will be asked about this wealth.
Rasul Allaah (sal Allaahu alaihi wa sallam) said, "The two feet of the son of Adam will not move from near his Lord on the Day of Judgement until he is asked about five (matters) concerning his life - how he spent it; about his youth - how he took care of it; about his wealth - how he earned it; and where he spent it and about that which he acted upon from the knowledge he acquired." [Tirmidhi]
One should also never forget the virtue of spending for the sake of Allaah; what you spend (for Allaah) is in reality what you have saved (as you will see it in the Hereafter).
'Abdullah reported that the Messenger of Allaah, may Allaah sallAllaahu alayhi wa sallam, said, "Which of you prefers the money of heirs to his own money?" "Messenger of Allaah," they replied, "there is none of us who does not prefer his own wealth to that of his heirs." The Messenger of Allaah, sallAllaahu alayhi wa sallam, said, "Know that there is not one of you who does not prefer his heirs' money to his own. Your wealth is what you have spent (for Allaah) and the wealth of your heirs is what you leave."
What about saving our wealth now and making a bequest to charity in our will?
We are allowed to bequest up to one third of our wealth (and even the third is a lot... i.e. less is better). However, no one knows what they will or will not have at the time of death. Therefore, it is best to spend and give charity while you are alive and in addition one may also bequest.
On the authority of Abu Hurairah (may Allaah be pleased with him), who said: A man came to the Prophet (peace and blessings of Allaah be upon him) and asked him: which act of alms giving is most virtuous? The Prophet answered. "Those alms you give away while you are in good health. If you have a keen desire to amass wealth, you are afraid of adversity and longing for money. Do not delay giving in charity until you are in the throes of death and then say: To so and so this, and to so and so that, for by then it already belongs to so and so". (Bukhari and Muslim)
"Allaah, the Exalted, says, `Spend, O son of Adam, you will also be spent upon.'' [Al-Bukhari and Muslim].
"Wealth is not diminished by giving (in charity). Allaah augments the honour of one who forgives; and one who displays humbleness towards another seeking the pleasure of Allaah, Allaah exalts him in ranks.'' [Muslim].
"The case of a miserly man and a generous man who gives in charity is similar to that of two persons who are clad in armour from their breasts up to their collar bones. When the generous man gives in charity, his armour expands so much as to cover his fingertips and toes. When the miser intends to spend something the armour contracts and every ring of it sticks to the place where it is (sinks into his flesh). He tries to loosen it but it does not expand.''
[Al-Bukhari and Muslim].
And Allaah knows best.
