Islamic finance and reverts

[Silas]

For the western reverts to Islam, have you found it difficult to adjust your finances to adhere to accepted Islamic practices?

For instance: some people in the west have lots of bonds and debt instruments (corporate bonds, government bonds, municipals, etc.). They tend to be a cornerstone of financial health

But as I understand it, these things are not permissible under Islam, because they amount to usury

Has anyone here had to deal with a large bond portfolio, either before, or after, becoming a Muslim?

[IslamLife00]

I don't have large bonds or any kind of investment as for now. Whatever I had in the past, I had used it up to survive the economic crisis and pay off debts.
Alhamdulillah although I don't have much now, Allah always provides me what I need.


It was narrated that 'Aishah said:
"The Messenger of Allah [SAW] often used to seek refuge (with Allah) from debt and sin. I said: 'O Messenger of Allah, how often you seek refuge from debt!' He said: 'Whoever gets into debt speaks and lies, and makes a promise and breaks it.'" (Sunan an-Nasa'i)

Abu Hurairah narrated that:
The Messenger of Allah said: "The believer's soul is suspended by his debt until it is settled for him." (Jami'at Tirmidhi)

Narrated Salama bin Al-Akwa`:

A dead person was brought to the Prophet (ﷺ) so that he might lead the funeral prayer for him. He asked, "Is he in debt?" When the people replied in the negative, he led the funeral prayer. Another dead person was brought and he asked, "Is he in debt?" They said, "Yes." He (refused to lead the prayer and) said, "Lead the prayer of your friend." Abu Qatada said, "O Allah's Messenger (ﷺ)! I undertake to pay his debt." Allah's Messenger (ﷺ) then led his funeral prayer. (Sahih al Bukhari)



As for your large bonds investment, you can sell them and put the money in a savings account, so you always have access to it whenever you want,
instead of your money locked in an investment (and I think they charge a fee if you withdraw it).
You can open a different account for the interest you earn from your savings, and every year you can specify a certain charity to donate from that account.
That way you are not using the interest money.
Or you can open several different savings accounts with low amount in each account,
because usually you don't earn interest if the amount is small.

There are halal options you can invest in, or start yourself. The market is not limited to muslims and you can employ muslims.
Here are some examples based on what I have read :
Restaurant - halal food only, no alcohol, nothing impermissible in Islam
Export Import - halal food, halal meat, consumables that do not contain ingredients/materials that are impermissible in Islam
Manufacturing - for example renewable energy, environmental friendly : solar panels, electric cars
Farming, agriculture, halal meat butcher shop
Construction, maintenance, renovation company, carpenter, mechanic, laundromat, car wash
Health and Beauty - Natural medicine, Medical supplies, beauty products that don't contain impermissible ingredients, clothing (for Islamic purposes, or permissible to wear in Islam but also appealing for non muslims to wear)
Education - Publishing company for Islamic literature, or learning materials that are in accordance to Islamic belief
Rental apartments or houses - you can also buy fixer upper and renovate it, then rent or sell it
Service - halal catering, janitorial, plumbing, electrician, wedding or event planning

There is also what is called halal financing. You will lend money to someone to buy a house, instead of mortgage with interest, so your earning is not from interest.
Also halal financing for students, for business starters etc

Be sure, do your own research before you invest. It's only based on what I have read, so I might have missed something. And it's your money, you will be held responsible for it in the Hereafter.
What is permissible in Islam is already mentioned in the Qur'an and Sunnah of the prophet sallallahu 'alayhi wa salaam, if you need more information inshaAllah islamqa.info can help.

[HowManyMore]

You can open a different account for the interest you earn from your savings, and every year you can specify a certain charity to donate from that account.
That way you are not using the interest money.

Is it really halal to earn interest from savings even if you give it to charity? One can have a savings account that doesn't earn interest, right?

[HowManyMore]

Nothing spectacular, but I do think the West is full of such traps. For instance debt — they're literally selling debt on TV (loans). They're basically trying to mess up people's affairs. I don't know how they do it with a good conscience.

Maybe this site could help you:

https://www.islamicfinanceguru.com/about-us/

In a sense, becoming a Muslim is all about letting go.. of harmful things.

About us - Islamic Finance Guru Islamic Finance Guru (IFG) is a hub that helps Muslims (and non-Muslims!) with their investment, personal finance and entrepreneurial journeys. We do this for one reason: to make our community better-off. We want to take Muslims from being among the poorest in society to the richest. We think th ......

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[IslamLife00]

Is it really halal to earn interest from savings even if you give it to charity? One can have a savings account that doesn't earn interest, right?

I never said it is halal to earn interest. There is no savings account that don't pay interest as far as I know of, so in that regard, he can donate the interest to charity.

If you read my post, I also mentioned about opening several savings accounts. That way he doesn't earn interest, because banks don't usually pay interest if the savings is small.

[keiv]

There's also Wahed Investment which is Islamic based. They have what's called a "purification" report every year that estimates how much of the profit you make is gained from haram and then you're supposed to donate it. They only provide the report and leave the rest up to you. I asked around in the past about this company and received mixed replies where some are for it and some are against it.

This isn't really related to the OPs question though, but I think the finance gurus are affiliated with Wahed in some way.