FACTORS OF ISLAMIC FINANCIAL PLANNING PRACTICES AMONG MUSLIM PROFESSIONALS: A CONCEPTUAL PAPER
DOI:
https://doi.org/10.35631/IJEMP.935013Keywords:
Financial Behaviour, Islamic Financial Planning, Muslim Professionals, Religious Commitment, Social EnvironmentAbstract
Islamic financial planning (IFP) is a strategic approach to achieving financial sustainability and individual well-being in this world while attaining al-falah (success and prosperity) in the hereafter. IFP integrates financial objectives with Shariah principles and encompasses of wealth generation, accumulation, protection, purification, and distribution. While financial freedom provides individual with greater financial flexibility, the pursuit of financial freedom without appropriate knowledge, discipline and ethical guidance may encourage inappropriate and impulsive financial decisions potentially that lead to financial distress, increased indebtedness and long-term instability. Therefore, effective IFP is crucial for individuals, particularly Muslim professionals who are not only responsible for managing personal finances but may also entrusted to manage financial resources and making important decisions in organisations. This article explores a conceptual framework of the factors influencing IFP practices among Muslim professionals in Malaysia based on the narrative literature review. It discusses four determinants of IFP practices: financial knowledge, financial behavioural, religious commitment and social environment. The role of Maqasid al-Shariah in guiding financial decisions is also emphasised, particularly in preserving wealth, faith, and overall well-being. Accordingly, this conceptual framework integrates financial, behavioural, religious and social dimensions from a Maqasid al-Shariah perspective to provide a comprehensive understanding of IFP practices. The framework also offers useful insights for relevant stakeholders in designing appropriate initiatives to strengthen financial capability and Shariah-compliant financial planning practices.
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