Investing is one of the first steps to achieving the highly coveted financial freedom. Once that much is understood, the dilemma lies in the next step. The “where”. Where to invest? If in the stock market, then, what stock? If in real estate, then, which property? If in a course, then, which one? If in a business, then, what business? Which product? How can I budget my finances for this endeavor? The “investing” part is clear. We understand that we have to actively be investing, but again, where to invest?
Best place to Invest
There is a multitude of investment opportunities around us. Many with a commendable return on investment (ROI). But, which is the most profitable one? This piece of writing will serve to convince you that the most lucrative investment right now is yourself. To prove my point, I will recount the story of Abdurrahman Ibn Aufؓ. A story that demonstrates how much more valuable knowledge and wisdom can be in comparison to materialistic possessions.
Some merits of Abdurrahman ibn Aufؓ
1. He’s from the first eight to accept Islam.
2. He’s from one of the ten who were promised Paradise by Rasulullah ﷺ (The Ashara Mubashara).
3. He’s one of the 6 counsel men who were appointed by Umarؓ to choose the next Caliph after his death.
4. He’s one of the few who passed legal pronouncement (Fatwa) while Rasulullah ﷺ was alive and in the midst of the Muslims.
5. He led Rasulullah ﷺ in the 2nd rakaah of a salaah (Is there a greater virtue than to lead the best person to have ever lived, the Imam of the Prophets, Muhammad ﷺ, in a Salaah?)
His Wealth and How he Amassed it
Abdurrahmanؓ was the richest companion of Rasulullah ﷺ. There are many narrations that enumerate how affluent he was. One of which says, once, Aa’ishaؓ was in her room when she heard a loud commotion in Madinah. “What is that?” she inquired. The people informed her, “That is the caravan of Abdur Rahmaan bin Aufؓ that had arrived from Shaam (common day Syria) carrying everything with it.” Hadhrat Anasؓ says that there were seven hundred camels in the caravan and all of Madinah was resounding with the noise.
He had amassed a large quantity of gold, silver, real estate, and livestock. He came from a wealthy background as his father was a very affluent trader. Consequently, he learned the art of trading (buying and selling) from a very young age. In Makkah, he became the wealthiest of his entire tribe.
As I mentioned in my other blog (How to catch a trend); Rasulullah ﷺ and his followers were granted asylum in the city of Madina. Therefore, all Muslims had to leave Makkah and head to their new base. This was a very difficult time for Muslims as they had to leave their birthplace and leave everything behind in Makkah: their homes, their wealth, and all their belongings. Abdurrahmanؓ replicated the same behavior as the other Muslims. He left all his wealth in Makkah and left for Madina with absolutely nothing to claim for himself.
Upon reaching Madina, Rasulullah ﷺ made a bond of brotherhood between the Madina residents, the Ansaar (the helpers), and the Muhajirs (Migrants). He paired one with the other. This bond signified that the Ansaar would help the Migrant to settle down, through financial assistance or residential. This served as a smooth transition for the Migrants and eased the burden of migration on both parties.
The Sahabi in question, Abdurrahmanؓ, was paired with the Madina resident, Sa’d ibn Rabeeؓ. Surprisingly Sa’adؓ was the wealthiest of the residents of Madina. When Rasulullaah ﷺestablished a bond of brotherhood between both, Sa’dؓ said to Abdur Rahmaanؓ “Dear brother! I am the wealthiest person in Madinah and you may have half of my wealth.” Abdur Rahmaanؓ replied, “May Allah bless you in your family and wealth. Just show me the way to the marketplace.” When Sa’dؓ showed Abdur Rahmaanؓ where the marketplace was, Abdur Rahmaanؓ began trading goods until he had made a profit.
Recognize the level of self-sufficiency Abdurrahmanؓ had. Even when offered copious amounts of wealth, he was quick to reject that which was obtained by no earnest effort of his own. Rather, he had confidence in his own abilities and skills. And he was not wrong. It was not long before he made enough money to get married. As the days progressed, he increased his initial capital into a plentitude and quickly became the richest among the companions of Rasulullah ﷺ.
Fundamental Principle Learned
A principle can be derived from the story of Abdurrahman ibn Aufؓ if looking from the standpoint of accumulating wealth. If practiced, it will greatly increase your chances of financial freedom. The principle is to start with investing in your own self. Abdurrahmanؓ no doubt came from a wealthy family. Before Islam, he was amongst the richest of his tribe. But all of that was absent once he Migrated to Madina. All the money he had accumulated hitherto migration had all been left behind. Hence, when he came to Madina, his pockets were empty. Yet, he managed to accumulate more wealth than ever before, because although he left every materialistic possession behind, he did not depart with his knowledge.
The wisdom and the knowledge which he accumulated throughout his life remained with him even in Madina. His knowledge of business became the foundation of his wealth building. He possessed an advantageous skill through which he brought value to the marketplace.
I ask you this, what value are you bringing to the table? People often complain that their wages are insufficient. Think critically and recognize that the amount you’re getting paid is the amount that you’re worth. Increase your value and you will be rewarded. Naturally, you see the benefit of investing in yourself through the life of Abdurrahmanؓ. All that remained with him was his knowledge. This goes to show that even if you lose all your money, but you still have a valuable skill set that differentiates you from others, you will be worth a fortune. Also, when offered a great sum of money by Sa’dؓ, Abdurrahmanؓ kindly refused to take it. This demonstrates that he did not generate money from money, but rather from the knowledge of commerce that he possessed.
A Real-World Example
A simple yet effective and clear example is that of standing and experience in a game. When one begins, they begin as a rookie. They are inexperienced and are a substandard player. As they progress, they improve their skills through practice. If a game requires a larger skillset and faster reflexes as it progresses, naturally, the player will further sharpen their skills and reflexes through application Eventually, the player will become very proficient at the game; mastering many skills and gaining very sharp, lightning-fast reflexes. Now, let’s say this individual restarts from level 1, do you think they will struggle as they initially did? Of course not! Rather, they’ll breeze through it, because although they restarted the game, their skills, reflexes, and experience remain. They are ingrained into them and go wherever they go. Now, this is what sets them apart from others. This is what will make them better than others and allow them to stand out. Similarly, it is necessary to build your skillset. As mentioned previously, it is what separates you from others.
Many other examples can be given. With real estate, once you’ve sold your first house, the second deal will be easier. Slowly but surely you’ll have sold plenty of properties. Allah forbid, if you were to lose everything in a calamity and had to restart with an empty portfolio, growing your wealth would be straightforward. You now have what you didn’t have before, knowledge.
Another example, to put matters into perspective, would be the stock market. The market is based on buying shares of a company and selling/”trading” them for a higher price. If you are able to generate a profit from a smaller number of shares, such as 20, then larger numbers, like 200 or 2000, would only increase your profit margin. However, if your trades are resulting in a net loss then the number of shares won’t matter. This explains why pro traders can open a brand new account with a small sum, and build it into a big fortune. Often, you will see pro traders do that to demonstrate the depth of their understanding of the market. Many ill-informed individuals open accounts with larger sums yet suffer a loss because they don’t invest in themselves first by LEARNING.
Conclusion
Apply the principle learned from the life of Abdurrahman ibn Aufؓ. Knowledge and wisdom are much more valuable assets than money. Money and commodities will come and go, but your knowledge and experience remains with you. Thus, make it a priority to learn and build skillsets. Invest in yourself and increase your value.