Paying Zakah ; Being generous with wealth ; Helping those in need ; Being mindful of spending habits .

This hadith is about the obligation of paying zakat or charity in Islam. According to this hadith narrated by 'Ali ibn Abi Talib, the Prophet Muhammad has relieved Muslims from paying zakat on horses and slaves but they should pay a quarter of one tenth for every forty dirhams which is equivalent to one dirham. This means that if someone owns 40 dirhams or more then he/she must pay 1 dirham as zakat or charity. This teaches us that we must be generous with our wealth and help those who are less fortunate than us by giving them some money as charity so that their needs can be fulfilled. It also teaches us the importance of being mindful of our spending habits and not wasting money unnecessarily because it could be used to help others in need instead.