KUALA LUMPUR: Careful and efficient financial planning is crucial for Muslims who wish to perform the haj at a young age without being burdened by financial difficulties.
This involves consistent saving habits and investing in syariah-compliant financial instruments to ensure that haj funds are accumulated effectively, without disrupting other financial obligations.
Associate Professor Dr Muhammad Irwan Ariffin from the Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia (IIUM), emphasised that financial literacy plays a vital role in cultivating discipline and responsible financial behaviour, especially among young people who aspire to perform the haj.
“One of the most effective strategies is to open a dedicated haj savings account such as Tabung Haji, which offers competitive profit distributions, is exempt from zakat since it has already been paid, and provides haj registration services.
“Setting up an automatic monthly savings plan ensures consistency and discipline while investing in low-risk, long-term Syariah-compliant instruments can further grow haj savings over time,” he said in an interview with Bernama.
He also recommended that individuals allocate between 10 to 20 per cent of their monthly income toward haj savings, depending on their financial commitments and the time frame before they intend to perform the pilgrimage.
“Everyone has different financial capacities and responsibilities, so this percentage should be seen as a guideline rather than a fixed rule,” he said, adding that for those who begin saving early, for example, 10 to 15 years in advance, even a smaller percentage can be sufficient.
For public sector employees with stable income and guaranteed retirement benefits, he said the recommended savings rate of around 10 to 15 per cent.
“For private sector workers, whose income stability may vary, they are encouraged to set aside between 12 to 18 per cent of their monthly earnings, depending on the benefits provided by their employers,” he said.
He said individuals with unpredictable income, like the self-employed, entrepreneurs, and gig economy workers, require a more flexible approach to saving.
He suggested they save 20 per cent or more of their income during high-earning periods and adjust the amount accordingly when income is lower, as they also need to self-fund their retirement and social security.
In addition to saving in cash, he said Muslims aspiring to become Duyufurrahman (guests of Allah) at a young age can consider investing in syariah-compliant assets such as sukuk, gold, or Islamic unit trust funds.
These can serve as viable alternatives to growing haj savings over time, he added.
“Young individuals can start small—allocating about five to 10 per cent of their income and gradually increase the savings rate as their financial situation improves. Those with higher incomes have the advantage of saving at a greater rate, allowing them to achieve their haj savings goals sooner,” he said.
Muhammad Irwan highlighted the benefits of performing the haj at a young age, especially in terms of physical health.
He said younger pilgrims generally require less medical support, potentially reducing overall expenses during the pilgrimage, which is an important consideration, as healthcare costs can be a significant burden for older haj pilgrims.
“Ultimately, Muslims must enhance their understanding of Islamic financial planning to perform the haj at a younger age with greater peace of mind and spiritual fulfilment. This starts with early savings, living prudently, and avoiding unnecessary debt,” he said. – Bernama
