Rockefeller’s advice – 8

Auto-generated transcript:In the name of Allah, the Most Gracious, the Most Merciful. All praise belongs to Allah, the Lord of the worlds, and the most gracious of all the messengers. Muhammad and the Messenger of Allah, peace and blessings be upon him and his family, and peace and blessings be upon him and his family. And after that, principle number eight. John D. Rockefeller says, reinvest everything or lose everything. Reinvest everything or lose everything. His pending rule was never touch principle. Never touch the principle. Reinvest 90% of the profits, live on 10%. He says men fail, and this is before all the equality stuff, so therefore people fail, because they spend tomorrow's fortune on today's pleasures. He's talking about the never-never. He's talking about borrowing or getting into debt in order to fund today's pleasure. Compound interest builds empires. He's saying men fail because they spend tomorrow's fortune. You don't have it with you. Tomorrow's fortune on today's pleasures. Compound interest builds empires. Truest words spoken and completely reflect the Islamic principles of zero interest, zero interest finance. Just see. Just see what people usually spend on. People will spend, I'm talking about America especially. People will spend on, first thing they spend on is a car. They will try to get a new car, and then they will try to get the latest car in that bracket. I mean, not everybody is aiming for a Ferrari because they know they can't afford that. But if they're buying a Toyota, then they want the best and the latest and so on and so on. Fully loaded. Whereas if you just ask yourself, what is it that I need? You don't need a car, you need transport. I lived in America for six years, and I never had a car. And I never needed a car. People used to laugh. They used to say, you're the only person in the whole of the United States who does not own a car. I said, exactly. I am proud of that because I did not own a car. And because of that, two things happened. One, I saved a huge amount of money. And secondly, I helped another brother with some income. I had this dear brother and friend of mine, Abu Hadi, who used to drive Uber. And then he used to drive for me. And anywhere I wanted to go, my wife wanted to go, we would call Abu Hadi. We just did a very simple thing. I said, if I lease a car, obviously I will not take a car on finance by paying interest. But even if I take, and I did not want to spend the money to buy a new car. So I said, now what's the option I have? One is to buy a secondhand car. We don't know what kind of condition it is in and so on and so forth. And you drive it. So now you're paying insurance. You're paying for gas. And then of course the liability. If you, you know, you're driving, you have an accident, all of that. If I lease a car, it would have cost me the lease about $500 per month, plus insurance, plus gas, plus this. Whereas in terms of my usage, I'm not saying everybody has the same usage. If you have to drive to, you know, 100 km a day, you have to pay $100. 100 km, 100 miles a day or 50 miles a day commuting, that's a different thing. I didn't have to do that. So for my usage, I, in six years, I don't think I spent $500 in any one month. So I used to call him, call my, this, my friend to drive for me. And so therefore I had access. To a driver and a car. And he's a good friend of mine. So, you know, he would, it would be good company. I was learning Arabic. So I would speak my sort of practice my Arabic with him. And he would help my wife whenever she went shopping. The point I'm making is that when you use your money wisely, which is never touched the principle. He says spending tomorrow's fortune on today's pleasures. This is what happens. That's why they send you the send you credit cards in the mail. That is why they have all these great schemes where you can get a house straight away and you will get a mortgage. Apart from being completely haram. It gives you. Now you are stuck and tied down to this bank for the next 30 years. And in that 30 years, you are actually going to pay maybe three times. The value of the house. Which you bought. Now tell me how in which way in which imagination does this make sense? And by then by in 30 years, you got a 30 year old house. Even if you bought a brand new house, you got a house. We now 30 years old. If you bought a house, which was already older, it's that much older. You paid three times the value of it. And you own the house. So what? A house you own is not really capital because you to monetize it, you have to sell it while you are living in it. It's dead money. Whereas if you had lived within your means, which means that you rented and the money that you would have spent on your mortgage payments. If you invested that money and you rolled it every time you invested to get some profit, you would have spent it. You would have spent it. You would have invested to get some profit to, you know, you reinvested and reinvested. That's what he's talking about. Compound interest. Now he's talking about compound interest. I'm not talking about interest. I'm saying you just reinvest the money and therefore the money grows. They put it into shares or something, whichever, whatever the halal investments are available to you. And you will find that you are, you know, you've done a great good thing for yourself. Right. You have created capital for yourself. If you have one, you have enough money reinvested in something which is more substantial. Even if you're buying a house, if you have enough money, for example, to buy a house instead of buying a $3 million house by a 1 million by 3 $1 million houses live in one rent out the other two and you have a free income for life. Now, there are many ways of doing that. As he's saying here, reinvest everything or lose everything. Right. So you reinvest profits. He says, reinvest 90% of the profits live on 10%. Now, all of these things require self-control. You can't be eating out every day. You can't be buying whatever you feel like buying. You can't be living on Amazon and expect to do this. You cannot. But then these are the choices you make in life. Do you want to build capital? Do you want to actually become wealthy? Or do you want to live? Do you want to pretend to live the life of a wealthy person until one although in actual fact you are one paycheck away from the poorhouse? So one day something happens, whether the economy tanks or you lose your job or something happens and literally you are on the street. So which one do you want? That is the question. The big question is that. So always think the very simple rule. If you are buying something that is not earning something for you, that's a loss. If you are buying something that is not earning for you, that is a loss. So when you are spending, ask yourself, I'm spending on what? Spending on expensive cars? A car is a depreciating asset. Right. You don't believe me? Go look it up. You take, you go to the dealer's lot, ask for the price of the car, buy the car, drive it off the dealer's lot, take a U-turn, come back on again and tell him, please buy it from me. He will buy it at a price less than what he shall pay. And nothing happened to the car. Five minutes before that, it was in his parking lot. Five minutes later, it was gone. Five minutes later, it comes back into his parking lot. But in that five minutes, it was with you and therefore it loses value. This is the reality. So if you are going to buy depreciating assets, it makes absolutely no sense. It's bad financial sense. So never touch principle. Whatever is your money, the principle, don't touch it. Reinvest it. Reinvest the profits. Live on 10%. Believe me, you are not going to be living a bad life. You will live a very nice, comfortable life. You will not live a luxurious life. You don't need to live a luxurious life. Think in terms of the future where you are building capital, where you are building actual wealth. And never ever spend like Rockefeller says, men fail because they spend tomorrow's fortune on today's pleasure. Never, never, never do that. Never do that. Never spend tomorrow's fortune on today's pleasure, which is doing it. Which is do not fall into debt. Very simple. Do not fall into debt. Debt is the chain. That is how they control you. They put you in debt and then they control you because you have put a noose around your own neck because you bought this debt. Right? It's a noose around your own neck. And you put it there. Nobody forced you. They just tempt you. And you take this. The great holiday and this and that and, you know, appliances and luxuries and this handbag and that. Those clothes and that dress, whatever. So it's very important to be clear. To make sure that you reinvest your wealth. This is exactly the principle in Islam. No zero interest. Do not touch anything which has interest in any shape or form because it's haram. Allah declared war on the one who deals with interest. The rule does not change because you are living in America or Canada or wherever. It's the same rule. It's the law of the Quran. Nobody on the face of the planet can change that rule for you. If somebody is saying to you that this rule does not apply in America, this person is lying through his teeth. He will answer to Allah and you will answer to Allah if you follow him. So please. Stay far away from this. And make sure that what you do is halal. And then make sure that what you do is living within your means. Living within your means. And your means is what you have today in your hand. And out of that, live on 10% of that. 90% of that invest.