Allah has written destiny of everything in "Al-Lawh Al-Mahfooz" also read as Lawh Mahfuz(لوحِ محفوظ) which means well preserved tablet.
Belief in destiny implies that a person believes and accepts whatever has happened in this universe before as well as whatever is happening in the present and all that has to occur in future is all in perfect accordance with what Allah has already predestined to happen.
He created everything, then ordained their destiny- [Al Furqan Verse 2]
Benefits of belief in destiny
Man is bound to pride when he achieves a little success due to his small effort and he is likely to grieve over his failure. This is so because he believes that the results of his efforts are purely an outcome of his own doing.
In contrast, belief in destiny saves a man both from pride and sorrow because Islam teaches him that whatever the result comes, it is in accordance with Allah's will. Belief in destiny saves a man from pessimism, increases his confidence and prepares him to face even the hardest challenges with a smiling face.
Misconceptions regarding belief in destiny
Some people think that belief in destiny means that a man is helpless and bound with whatever is destined to happen, so there is no need to work hard to achieve something, which is obviously a wrong approach. Destiny is predetermined by Allah and human efforts, they both combine together to shape the victory and failure.
Discussion about destiny
Abu Huraira (May Allah be pleased with him) relates ,"Once we companions were indulged in argument over the matter of fate, when prophet Muhammad (ﷺ) arrived there, upon knowing what we had been arguing about, he got very much displeased to the extent that his face turned red with anger as though the redness of grapes was squeezed into his cheeks. Then he (ﷺ) said, "Have you been ordained to do so? Have I been sent towards you for this? The fact is that the people before you were destroyed only after they had started arguing about destiny. I put you under oath and again I put. You under oath in future you will never argue about destiny". [TIRMIZI, Ibn Maja]
Thus we should never discuss about destiny and never be disappointed from the mercy of Allah upon certain difficulties. We should do our work sincerely and then leave the results in the hands of Allah.
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Allah and his messenger knows best