Is it obligatory to give away all one's money out of fear of Allah’s reckoning on the Day of Judgment, especially if an abundance of wealth leads to excessive spending on luxuries, or is it sufficient to give away a large portion of it?

A person has the freedom to dispose of their wealth while healthy, as long as it is not extravagance, squandering, or spending in impermissible ways. The Companions donated their wealth, and the Prophet, peace and blessings be upon him, approved of it. Although spending is religiously مطلوب (required/desirable), it is preferable to consider the condition of the donor and their heirs, so as not to harm them. For keeping money to cover their needs is better than leaving them destitute. Nevertheless, donating all of one's wealth despite needing it is considered an act of altruism that is religiously recommended, and "good wealth for the righteous man is good."