And if a person gives charity to the extent that he himself becomes needy or his children become needy (then such charity is not valid). Similarly, if he is in debt, then repaying the debt takes precedence over charity, freeing slaves, and gifts, and his charity will be returned to him, and it is not permissible for him (to not pay the debt and by giving charity) to destroy the wealth of people (the creditors). And the Prophet (peace and blessings of Allah be upon him) said that whoever takes people's wealth (as a loan) with the intention of destroying it (i.e., not returning it), Allah will destroy him. However, if a person is known for patience and enduring hardship, he may give preference to the need of a poor person over his own specific need. Just as Abu Bakr al-Siddiq (may Allah be pleased with him) gave all his wealth in charity, and similarly, the Ansar gave preference to the needs of the Muhajirun over their own needs. And the Prophet (peace and blessings of Allah be upon him) forbade the wasting of wealth, so when it is forbidden to waste one's own wealth, then it is even more impermissible to waste the wealth of others. And Ka'b ibn Malik (who stayed behind from the Battle of Tabuk) said, "O Messenger of Allah! I wish to complete my repentance by giving all my wealth in charity for Allah and His Messenger." The Prophet (peace and blessings of Allah be upon him) said, "No, leave some of your wealth; that will be better for you." Ka'b said, "Very well, I will keep my share in Khaybar."

Narrated Abu Huraira: The Prophet (p.b.u.h) said, "The best charity is that which is practiced by a wealthy person. And start giving first to your dependents."

Narrated Hakim bin Hizam: The Prophet said, "The upper hand is better than the lower hand (i.e. he who gives in charity is better than him who takes it). One should start giving first to his dependents. And the best object of charity is that which is given by a wealthy person (from the money which is left after his expenses). And whoever abstains from asking others for some financial help, Allah will give him and save him from asking others, Allah will make him self-sufficient."

And Wahib narrated that Hisham narrated to us from his father, from Abu Hurairah (may Allah be pleased with him), and from him, the Prophet Muhammad (peace and blessings be upon him) narrated likewise.

Narrated Ibn `Umar: I heard Allah's Apostle (p.b.u.h) while he was on the pulpit speaking about charity, to abstain from asking others for some financial help and about begging others, saying, "The upper hand is better than the lower hand. The upper hand is that of the giver and the lower (hand) is that of the beggar."