Will our good deeds not save us and in fact cause us to go to Jahanum?

Question

On the authority of Abu Hurayrah (may Allah be pleased with him), who said: I heard the Messenger of Allah (PBUH) say: The first of people against whom judgment will be pronounced on the Day of Resurrection will be a man who died a martyr. He will be brought and Allah will make known to him His favours and he will recognize them. [ The Almighty] will say: And what did you do about them? He will say: I fought for you until I died a martyr. He will say: You have lied - you did but fight that it might be said [of you]: He is courageous. And so it was said. Then he will be ordered to be dragged along on his face until he is cast into Hell-fire. [Another] will be a man who has studied [religious] knowledge and has taught it and who used to recite the Quran. He will be brought and Allah will make known to his His favours and he will recognize them. [The Almighty] will say: And what did you do about them? He will say: I studied [religious] knowledge and I taught it and I recited the Quran for Your sake. He will say: You have lied - you did but study [religious] knowledge that it might be said [of you]: He is learned. And you recited the Quran that it might be said [of you]: He is a reciter. And so it was said. Then he will be ordered to be dragged along on his face until he is cast into Hell-fire. [Another] will be a man whom Allah had made rich and to whom He had given all kinds of wealth. He will be brought and Allah will make known to his His favours and he will recognize them. [The Almighty] will say: And what did you do about them? He will say: I left no path [untrodden] in which You like money to be spent without spending in it for Your sake. He will say: You have lied - you did but do so that it might be said [of you]: He is open-handed. And so it was said. Then he will be ordered to be dragged along on his face until he is cast into Hell-fire.

It was related by Muslim (also by at-Tirmidhi and an-Nasa'i). (sunnah.com)

Does this mean that even our good deeds will not save us and in fact cause us to go to Jahanum?

I mean even if the reciter taught people the Qur'an just so they would say "oh look he is a Qari or Hafiz" they still did a good thing to learn and then teach people. They still followed the advice of the Prophet (saw). But all that will go to waste because he will be cast into hell anyways for wanting people to thing good of him. This makes me think that there is no hope. We have no chance of going to Jannah. We are told that Allah loves His servants more than a mother lover her child but then why are there such strict rules. After all it is in human nature to want people to think good of you and to feel good about you are doing.

Answer 1

There is nothing wrong about wanting people to think good of you, there is everything wrong in expecting Paradise as a by-product! "Actions are based on intentions," needs no introducing to a Muslim.

This hadith is in accordance with Quran:

And when you have performed your Hajj rites, remember Allah as you had been remembering your own forefathers, or even with greater zeal. (Even those who remember Allah do it in different ways). Some say, "Our Lord, give us all the good things here in this world. " Such people shall have no share in the Hereafter. (2:200) Then there are others who say, "Our Lord, give us what is good in this world and also what is good in the Hereafter and save us from the torment of Fire." (2:201)

The scholar, the martyr and the alms-giver all wanted "good in this world," and were granted, just like what the Quran says. Read this following part of the hadith again

you recited the Quran that it might be said [of you]: He is a reciter. And so it was said.

Such people shall have no share in the Hereafter. There is no reason to think there is no hope because there are others who say, "Our Lord, give us what is good in this world and also what is good in the Hereafter."

all that will go to waste because he will be cast into hell anyways for wanting people to thing good of him.

This is fallacious thinking, he will not be cast into hell for wanting people to think good of him, he will be cast to hell because he didn't think or do anything about hereafter, not even making a simple dual-intention of being good in people's eyes and earning a reward in the hereafter.

Answer 2

This is -in my opinion- a great hadith, which shows the importance of the intention and the narrow path between hypocrisy and sincerity (devotion) in the acts!

This hadith is to be found in sahih Muslim in the Chapter "One who fights to show off and gain a reputation deserves Hell" ... which already gives a hint about the meaning!

The quintessence: is you'll have to try your best to do what you do for a good (acceptable) reason to make it a good deed if not one will have to expect what Allah has promised those who did bad deeds.
So the basis of any act should be an intention and a sincerity and devotion in doing it, if other people then told you you are a master in your work or praise you that would be ok, but you should be careful from getting conceited, arrogant or self-conceit ... As once you get self-conceit your acts would be more for the people then for the sake of Allah!

So this is the kind of Jihad we'll have in all our life!

And here a summarized extract from sharh al-Imam an-Nawawi:

This hadith shows the wickedness of hypocrisy and the hard punishment in the hereafter and the importance of the sincerity in the acts which Allah asked as for in (98:5)! And naming Jihad, learning and getting Knowledge and learning Qur'an and reciting it, is just to show that this is applied for any deed!

And Allah knows best!