No person could ever equal Muhammad may Allah bless him and grant him peace in generosity. Whatever he received he gave away to others and felt more pleasure than those who received the gift. He never turned anyone away empty-handed from his house and always gave preference to the needy over his own needs.

His charity was of various kinds. Sometimes he gave a gift; sometimes he borrowed something and repaid it generously; sometimes he bought a thing and paid more than the price to the seller; and sometimes he gave charity. He accepted gifts from other people but always gave more gifts in return for them.

Muhammad peace be upon him never said no to any request from anyone in his life. He used to say that he was only a distributor and a treasurer and that Allah was the Bestower of everything.

Muhammad peace be upon him was so generous that he always gave something to anyone who asked him for help, but if he had nothing, he promised help later on. Sometimes it so happened that Muhammad purchased an article for himself, then gave it as a gift to the seller.

Sometimes Allah blessed the food that the Prophet peace be upon him shared so that it multiplied to feed many.

Whenever he received anything, he did not sit in peace until it was finished.

Abu Dharr reported that one evening he was walking with Allah's Messenger when he said, "Abu Dharr, if the mountain of Uhud were turned into gold for me, I would not like three nights to pass and one dinar still be left with me, excepting what I would leave for paying my debts." He would never rest until all the cash in the house was completely finished. Once the Prophet went home in a hurry after the prayer and then immediately came out again. The people were surprised, but he told them that he had remembered during the prayer that there was some gold in his house. He thought that he might forget and the gold might remain there all night. He went back home to ask that it might immediately be given in charity.

He always paid the debts of the dead and issued instructions to the effect that if anyone died leaving any debt, he should be informed of it so that he could pay it off.

Whenever Muhammad peace be upon him met any miserly person, he advised him to be more generous and charitable. Ibn Abbas said that he heard Allah's Messenger peace be upon him say, "The believer is not the one who eats when his neighbor beside him is hungry," Abu Hurayrah reported Allah's Messenger peace be upon him as saying, "The believer is simple and generous, but the wicked person is deceitful and ignoble." In short, Muhammad peace be upon him was so generous and charitable that he never kept anything surplus for himself but gave all to those who came to him for help.

Source: islam 101