Salman Al-Farisi's 1-1-1 Business Finance Management Inspiration

As a Muslim, the Prophet and his companions are certainly role models in living life, not least in financial and business management. One interesting formula is "Salman Al-Farisi's 1-1-1 Business Finance Formula". This formula, although simple, contains deep wisdom and is relevant in business financial management. How does it apply to doing business today? let's take a look together!

Who is Salman Al-Farisi?

Salman Al-Farisi was a companion of the Prophet Muhammad who had a very interesting background. He was born in the city of Isfahan, which is now part of Iran, around 568 AD. Salman came from a noble family and lived in luxury since childhood.

Salman Al-Farisi had a very different life journey from many of the Prophet's companions. He began his quest for truth and piety from a young age. Although he lived in luxury and abundance, material wealth was not enough to satisfy his longing for spiritual understanding and a deeper quest.

Salman Al-Farisi sought the true religion and wandered far from Isfahan. During his journey, he immersed himself in various religions and philosophies, including Christianity and Zoroastrianism. Finally, after years of searching, he heard about a prophet who would appear in the Arabian region and bring the teachings of the true religion.

Salman was convinced that Prophet Muhammad was the promised prophet. It was the existence of the Prophet Muhammad that confirmed Salman Al-Farisi's belief that Islam was the religion he would follow for the rest of his life.

Salman Al-Farisi travelled to Arabia and joined the Muslim community in Medina. He became one of the most loyal and trusted companions of the Prophet Muhammad. Salman's loyalty to Islam and the Prophet Muhammad is an inspiring example to many, especially in the context of business and leadership.

During his lifetime, Salman Al-Farisi contributed greatly to the spread of Islam and had a special role in key events in Islamic history. His life and journey of quest, from luxury to faith and simplicity, make him a powerful example of spiritual transformation and success based on the values of truth, integrity and perseverance.

Simplicity, honesty, and sharing blessings are principles that inspire many in the business world who seek sustainable success.

Salman Al-Farisi's story in business

Salman Al-Farisi is recognised as one of the leading business minds of his time. The 1-1-1 Business Finance Formula is one of the financial inspirations from Salman Al-Farisi that has been passed down to us and is still relevant to apply to businesses today.

At the time of his conversion to Islam, Salman Al-Farisi's life was the opposite of what he had lived before. He lived in poverty until he faced financial downturn. He was not even able to provide for his family.

In that situation he approached the Prophet and complained. So the Prophet asked if he had anything that could be sold. Salman Al Farisi then handed over the blanket he used to wear and a glass.

The Prophet auctioned the item and bought it for 1 dirham to one of the companions. From there he learnt to trade and manage finances to become a businessman.

In business, he used 1 dirham for capital when trading, and with the capital of 1 dirham, he sold his merchandise for 3 dirhams. From the 3 dirhams, he divided it into three parts, 1 dirham for trading capital again, 1 dirham for his family, and 1 dirham for charity.

How to Apply the 1-1-1 Formula

The 1-1-1 Business Finance Formula applied by Salman Al Farisi is a simple formula that consists of three main components:

1/3 Income for family living needs

This principle emphasises the importance of giving priority to the basic needs and well-being of the family. These include necessities such as food, clothing, shelter, education, and healthcare. By allocating a portion of your income to your family, you ensure that your family's needs are well met.

Meeting the needs of the family is a moral responsibility. When someone gets married and has children, they automatically enter a phase of committing to take care of and support their family for the sake of the continuity of the next generation.

1/3 of Revenue for Venture Capital

Rotating venture capital allows a business to grow faster. By reinvesting profits into the business, you can expand operations, purchase new assets, develop products or services, and increase production capacity. Rotating capital to expand your business gives your business the opportunity to grow. Sustained growth and consistent profits can increase the overall value of the business.

1/3 of Income for Charity

Charity is a form of worship in Islam. It is a way to obey Allah and follow His teachings. Charity is part of Allah's commandment to Muslims. By giving alms, we can help reduce greed and stinginess within ourselves.

On the other hand, Charity is a way to help the less fortunate in society, including the poor, orphans, and the needy. It is a form of care and concern for those in need.

3 Important lessons from Salman Al-Farisi's 1-1-1 Business Finance Formula

Giving

Giving is about sharing with others, whether in the form of money, time, attention, or support. You can apply this concept in the following ways:

- Give a portion of your income as charity to the needy.
- Give of your time by doing volunteer work or helping people in need.
- Give attention and support to friends, family, or community members who are experiencing difficulties.

Saving

Saving is about planning for the future and managing resources wisely. It involves good financial management. Some ways to apply this principle are:

- Keeping a portion of your income as savings for future needs, such as children's education, retirement, or emergency needs.
- Manage your debts wisely and try to pay them off quickly.
- Invest wisely to achieve long-term financial goals.

Sacrifice

Sacrificing means committing to share and provide support to people or causes you care about without expecting a return. This can be applied in the following ways:

- Giving time, energy or treasure to our loved ones, including family and relatives.
- Sacrificing a portion of our income to a charitable cause that is important to you.
- Supporting communities or organisations that strive for positive social change.

Conclusion

Salman Al-Farisi's 1-1-1 Business Finance Formula is a simple principle that can help you manage your business finances wisely. It reminds us to always maintain a balance between income, expenses, and savings. By applying this formula, you can grow your business better and face financial challenges with more confidence.