Is a businessman free to spend his wealth however he wishes, without considering the feelings of the poor and needy?

It is established in Islamic law that every person is free to dispose of his wealth and possessions in whatever manner he deems appropriate to his circumstances, provided that he neither practices miserliness nor extravagance and does not neglect the rights of the poor and needy. He must also give priority in his expenditure to those whom he supports, based on the hadith of the Prophet (peace and blessings be upon him and his family) who said, “The best of you is the best of you to his family, and I am the best of you to my family” (reported by At-Tirmidhi).

It is certain that there are divine wisdoms behind Allah Almighty granting wealth to whomever He wills and withholding it from whomever He wills. Allah Almighty is All-Knowing and All-Seeing—He knows who deserves prosperity and who deserves poverty. In a hadith Qudsi, Allah Almighty says, “Among My believing servants are those whose faith is only set right through wealth; if I were to make them poor, it would corrupt them. And among My believing servants are those whose faith is only set right through poverty; if I were to grant them abundance, it would corrupt them.”[1] Commanding moderation in one's manner of living and forbidding extravagance, Allah Almighty says, “And do not make your hand chained to your neck, nor extend it completely, lest you sit blamed and destitute” (Quran, 17:29).

Allah Almighty has prescribed how Muslims should deal with their wealth, and the Prophetic Sunnah affirms it. ‘Abdullah ibn ‘Amr (may Allah be pleased with them both) narrated that the Prophet (peace and blessings be upon him and his family) said, “Beware of avarice, for those before you perished because of it. It commanded them to be miserly, so they became miserly; it commanded them to sever ties, so they severed ties; and it commanded them to commit immorality, so they committed immorality” (recorded by Abu Dawud).

From the above, it becomes clear that a person is free to spend his wealth in the manner he deems appropriate for his worldly circumstances, without being miserly or extravagant. However, this is conditional upon fulfilling the rights of the poor and needy by paying the zakat due on his wealth at the prescribed time in order to purify his wealth. His obligation does not end with paying zakat; rather, he should give generously in charity for Allah Almighty says, “Whatever you have will come to an end, but whatever is with Allah is everlasting” (Quran, 16:96). In the same context, Abu Huraira (may Allah be pleased with him) narrated that the Prophet (peace and blessings be upon him) said, “Charity does not decrease wealth, and Allah grants greater honor to the servant who spends in charity.”

Any spending should be done without hurting the feelings of the poor and needy, who may have benefitted considerably from his generosity, lest resentment or envy arise in their hearts. Abu Huraira (may Allah be pleased with him) narrated that the Messenger of Allah (peace and blessings be upon him and his family) said, “There is no day on which the servants [of Allah] awaken except that two angels descend. One of them says, ‘O Allah, compensate the one who spends,’ while the other says, ‘O Allah, bring destruction upon the one who withholds’” (recorded by Bukhari and Muslim).

And Allah Almighty knows best.