When it comes to spending, many of us to like to bury our head in the coins. We might be spending more than we should or not saving as much as we would like. That’s why during this UK Savings Week (18-24th Sept) you’ve got the perfect opportunity to pause and ponder over your outgoings.

Although it sounds simple enough, often life can get it in the way. Saving might come naturally to some, whilst for others it just isn’t an option. That’s why we’re sharing financial tips with Islamic guidelines which can help get you started.

1. Avoid Riba

We’re told to avoid interest at all costs and anyone involved in the transaction of it is cursed.

The Prophet (saw) said: “Allah has cursed the one who consumes riba (usury or interest), the one who gives it, the one who records it, and the two witnesses to the transaction, and He said, ‘They are all alike [in sin].” (al-Bukhari)

Avoiding riba will benefit you both in this life and the hereafter. You will avoid ending up in debt later in life, whilst abiding by your faith.

We’re told to seek alternative financial paths which are Shari’ah-complaint, and that won’t leave you worse off financially.

2. Live within your means

The importance of balance is encouraged within our teachings. Keeping a balance in all aspect of our lives, and not to living in excess. Although we’re able to enjoy and appreciate the world we live in, we’re discouraged to live in excess and beyond our means. This will not only help you financially, but also will stop you from consumed from this worldy life.

The Prophet (saw) said:  “Be moderate in seeking worldly things, for everyone will be facilitated for which he was created. So, if worldly things come to you (by Allah’s decree), then use them in the service of your religion; and if worldly things do not come to you, then do not stretch your hands out for them.” (Ibn Majah)

When making a larger purchase, ask yourself if it’s truly something you require or need. We’re bombarded daily with ads to make us buy things we don’t need. This can be both detrimental on our wallet and the environment.

It’s also important to have a good look at your spending, and create a realistic budget that works for you. There may be some months in which you go over or under, but still having a budget can help keep you on track.

You can do this in whatever works for you, but there’s plenty of money management apps that can help.

3. Give Zakat

A pillar of our faith, giving is embedded deeply within our faith. There’s nothing better you can do with your wealth than to give in charity and to fulfil your Zakat.

The Prophet (saw) said: Charity (zakah) is to be collected from the rich (members of a community) and distributed amongst its poor.” (al-Bukhari)

To some who do not fully grasp the teachings of Zakat may find it counterintuitive to share your wealth when you’re trying to save. But we’re taught that the wealth you’re given isn’t only yours. There are rights placed upon you which you need to fulfil, and that is a test.

If you would like to give your Zakat to families right here in the UK, and serve your local community then you can do so with HHUGS, right here.

4. Plan for emergencies

We’re told to tie our camel, and saving for a rainy day would be such a situation. To have Tawakkul in Allah does not mean you neglect your duties and the rights placed on you. Whilst you have firm faith that Allah will bestow and bless you with whatever is written, it’s important you still have an emergency fund for a rainy day.

The Prophet (saw) said: “If you trust in Allah with due reliance, He would provide you with sustenance as He provides the birds; they go forth hungry in the morning and return with full belly at dusk.” (at-Tirmidhi)

Nothing is guaranteed and within a moment you can lose the stream of income you’ve grown so accustomed to, be it because of a relationship breakdown, a financial crisis, or a job loss. Your rainy-day fund doesn’t need to be grand, but just an amount set aside that can tide you over if anything were to happen.

5. Invest

Investments can help you build wealth, and put your money in a secure pot which builds. You’re allowed to invest if you’re investment is ethical, adheres to Shari’ah principles, and does not deal with interest.

If you are interesting in investing there are Shari’ah compliant options available, such as Wahed, and others.

Get Barakah in your wealth

We’ve previously shared ways you can increase your rizq and put barakah in your wealth. You can find it here.

We’ve shared just a few tips on how you can get financially savvy, whilst abiding by Islamic teachings. It can be difficult when managing finances, and you may find yourself in a pickle. But it’s important to always keep in mind that whatever is written for you, will reach you.

Each step you take, whethere it’s an investment or purchasing a new car, be mindful of your actions and whether it is pleasing to Allah.