I’m going to start this by saying I get it. No one wants to think about savings – or lack thereof – and I’m the first on that list. My approach has always been: ‘money comes, money goes’ and I’m convinced that I always deserve a treat – when I’m on a trip (because, duh, I’m on holiday); when I’m not on a trip (because, again, duh, I’m not on holiday); on a good day; on a bad day; because the sun’s out, or because the sun’s not out. Having said that, life and changing circumstances have taught me that having savings isn’t an act of deprivation or miserliness but an act of love for your future self.

Setting aside some money can bring ease and convenience to many areas of your life. It can mean being able to afford the unexpected health emergency, not being greatly inconvenienced by your car breaking down, and actually enjoying being unemployed by travelling or learning a new skill with all the free time you have. Beyond emergencies or sudden changes in life circumstances, having savings means that you can build a life for yourself that you can be satisfied with and proud of, and that might mean not dropping your entire bonus on that girls’ trip to Cancun, and saving the buns from home for special occasions, not just because you made it into the office today.

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Since I’m not the resident expert on building up savings by any stretch of the imagination, we asked the Amaliah community and spoke to 8 Muslim women – including a personal finance expert – to find out how they approach their finances: their spending habits, saving mechanisms, motivations, and how they invest their hard-earned cash.

Creating Automations and Reducing Access to Your Money

A common thread amongst the women I spoke to is that they immediately add a barrier to accessing the funds they intend to save. For some people, this means having a direct debit set up to move either a set amount of savings or what they’ve budgeted to spend that day, and for others (me) this means sending a portion of their salary to their mum, who will undoubtedly make it much harder to access the money for those impulse buys.

Safia, 31, shares her savings mechanism, “Earlier in my career I didn’t have much money left over to save regardless, but as this changed over the years I had to come up with a system. I make sure I get paid into one account that I don’t have a card for and have a standing order amount go into another account which is where I spend from. It means that I don’t touch the money I don’t need. I haven’t saved for anything specific and I don’t intend to get a mortgage, though that’s what a lot of my friends are saving for. Recently someone needed some money, and my ‘just in case’ savings meant I was able to give them a lump sum amount.”

An Amaliah Asks contributor, 26, has saved £6050 by using Monzo to separate money into different pots which helps her stick to her budget. Another reader, 43, who earns £109k p/a and has saved £137k, shares her method, “Every month I first pay my essential bills, then half of what’s left goes to another account automatically through a standing order. I’ve done this consistently since I started working at 18. If there’s anything left at the end of the month, I’ll transfer that manually to my savings account. I have an account where I save for items I want to buy that I need to budget for, so I use that to help me plan my spending. I don’t have a credit card – learned the hard way not to have one! So I only ever spend what I have and it gives me a lot of peace of mind not needing to pay off credit card bills. This method has worked so well for me and helped motivate me to save and budget while still having the things I want.” 

Not everyone is fortunate enough to earn at this level – the median UK salary is £37.4k – so don’t be demoralised if your savings are still in the three figures, or don’t exist at all.

People’s saving capacity is all relative and there isn’t one standard number to aspire to. If you’re setting aside even the smallest amount and being intentional with your finances, you’re doing great!

Sam, 27, makes good use of automations and savings pots available on challenger banks like Monzo, Revolut and Starling.

“I’d say I’ve always been pretty good at saving for things I’ve needed and always wanted to pay for things independently from a young age-e.g. phone bill, laptop etc. – even if my parents offered to pay for it. At the moment I love using Monzo pots to remind me what I need to save for. For example, I have ones for emergencies, Zakat, car insurance, work fees, spare money for extra spending, holidays, Hajj, and so on.” 

She’s also taking advantage of the savings mechanisms available on the apps and has managed to save a healthy amount.

“I also signed up for the 1p automated saving function where on the first day it’ll save 1p, the second day it’ll save 2p, the third it’ll save 3p, and so on, as well as the reverse version where it starts at 365 pence. It’s great because it automatically goes into a pot each day without me thinking about it at all, and it’s such a marginal amount by itself, but together the two functions come up to £1.2k each year.”

She also adjusts her behaviour whenever she can to allow her to save a little bit extra to afford those bigger purchases.

“I use a separate account for my everyday spending and budget a specific amount each week for it, trying to save where I can. If I’m up early enough, I’ll go to work using a non-toll route and tend to take packed lunches rather than buy lunch at work. The portion I save is around 40% but it’s not this amount that’s under lock and key. I know I’ll have to spend it but it’s my way of putting money aside for things like car issues and other fees.” 

Of course, different seasons in life will always come with different capacities to save money.

“My habits have changed hugely with income and age. Before I graduated, pretty much any amount I had saved ended up being spent on things like holidays, or day-to-day stuff. I didn’t have any real long-term savings, especially when I was paying rent. I only started working full-time last summer. Now I’m back home with my parents, so whilst I spend more on commuting I know what it’s like to have to pay rent and I’m good at saving an amount that’s quite similar, alhamdulillah. Out of my weekly budget, if I have anything left over I’ll try to move that into my savings account too, though I’m embarrassed to say the Black Friday deals have had me in a chokehold.” 

Shabna, 31, is a self-proclaimed shopper, but she’s also big on sticking to her savings goals, combining self-discipline with utilising the different options available to her. 

“I’m someone who loves spending money and I think it’s really important to accept it if that’s who you are. Ever since I got my first big girl job, I knew the first thing to do when I got paid was move some money into my savings, it didn’t matter how much it was. There is some more official guidance, that recommends 50% on essential bills, 30% on spending and 20% for savings – 20% is a good ballpark, it’s okay if you can’t hit that just do what you can, just move the money out of your account so it’s done and you don’t feel bad about spending the money you do have.”

Aaminah Aziz, an expert in all things finance, who has hosted workshops in financial education for women, cosigns the approaches of the other women. She recommends that savings goals are clearly outlined at the beginning of the year, and are realistic and achievable. She advises you to move the amount you intend to save immediately out of your current account and make good use of the savings pots available on Monzo and similar apps, as they can help you track your progress and keep you motivated.

Money Making Savings Accounts

The resounding advice from secular sources when it comes to savings is to earn as much interest as possible on the money you’re putting aside. Interest, or riba, is considered by the Prophet ﷺ to be the fourth of the “seven deadly deeds,” to be avoided at all costs (Bukhari). Allah ﷻ is also quite explicit in forbidding interest in the Qur’an,

“Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. Whoever refrains—after having received warning from their Lord—may keep their previous gains, and their case is left to Allah. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.” (Surah Al-Baqarah 2:275)

The reasons for the prohibition and the ills of interest aren’t commonly discussed but I think are useful to highlight, if only for us to gain a greater appreciation for Allah’s wisdom. Islamic Finance Guru has a video that explains this, with the 5 reasons being summarised as:

1. It is exploitative of the poor, as they’re generally the ones borrowing money.
2. Interest gives rise to an exploitative economic system even if a specific instance of a loan may not appear to be exploitative.
3. Money has no intrinsic value and so cannot be rented.
4. To try to rent “the value imbued within currency by others in society” is not (a) clear/certain, and (b) appears to be renting out something a lender has no right to be renting out.
5. Lending money leads to a devaluation of the very thing being loaned (due to inflation).

Namamoney is the sharia-compliant answer to high-interest savings accounts. The savings accounts are deemed sharia-compliant because they act in a “wakala” structure. This means you enter into an agreement with the Islamic bank to allow the bank to invest on your behalf. Islamic banks will typically invest in sukuks (a bond-like instrument) and real estate structures that get signed off by a board of scholars, as opposed to conventional banks that invest in a wide range of funds, including arms and gambling. With the yield of their investments (again typically in real estate), they are able to offer the 3-5% “Expected Profit Rate” that is competitive to a normal bank’s “interest”.

Community-Saving Circles

Community-based saving initiatives have been around for hundreds of years, and the concept of a rotating savings and credit association (ROSCA) is thought to date back either to China in 200 BC, or to 13th-century Japan. A ROSCA is a group of people who agree to contribute the same amount of money into a common fund, with one member receiving the entire sum at each meeting until everyone receives the lump sum. For example, if there are 12 people and everyone puts in £100 each month, one person will take home £1200 every month. At the end of a fixed period, for instance, 12 months, everyone would have contributed £1200 and walked away with that amount. ROSCAs are common in developing countries with limited access to traditional banking, and by immigrant communities within the Global North, with participants often being women. ROSCAs are known by different names in different regions, including: hagbad or ayuuto in Somalia, chit in India, randa in Latin America, susu in Ghana, hui in Chinese communities in East and Southeast Asia, gam’eya in Egypt, and kameti in Pakistan.

Sabah, 26, has taken the traditional approach to saving by joining one of these groups.

“I want to preface this by saying I’m in a fortunate position where I live at home and despite offering to, I don’t have to contribute to rent or bills. It’s pretty simple for me – I hand over a fixed amount in cash, about three-quarters of my salary, each month to my Mum who then puts it into a typical aunties saving circle, what desis call a kameti. It’s worked well so far for me alhamdulillah because the money isn’t in my hands to spend. Having not gone to university, I don’t have any debt and have better savings than the average amongst my age mates.

With spending habits, I never went without as a kid, but I used the last 3 years to get my wants out of my system. This was all on an allowance from my earnings that Mum lets me have so I still had limits that stopped me from going crazy. Now it’s the occasional treat and I try to stay within a budget which I assign to myself weekly, so I don’t feel the purse strings tightening towards the end of the month. I say ‘allowance’ and ‘let me have’ but obviously this is all agreed with my mum and it’s because giving her the money means I’m not relying on my own self-discipline.”

Using Tech Tools to Optimise Your Finances

For some Muslim women, there is no better instrument in financial planning than the traditional spreadsheet.

Shabna prefers the orthodox approach and shares her process, “I usually have a goal for the year I’m working towards, right now I’m trying to save at least 30% of my salary. I have a spreadsheet mapped out with most of my monthly finances and I try to put most into savings and some into investments.

First thing you do is put in all your incoming money, so for me that’s my salary and the income from my lodger, and calculate the total income. And then you want to do the 50/30/20 division, and if you’re not spending 50% on your utilities and rent, you can move the surplus into your spending or your savings. In terms of monthly spending, your fixed costs won’t change – that’s subscriptions like gym, streaming services, phone contracts and the like. Once you have those noted down you’ll know how much flexibility you have with the rest. If you’re spending less than the allocated 30%, you could put the rest into savings or spend it how you wish and don’t have to be so restrictive with yourself. I personally find it difficult to tell myself I’m only going to spend X amount, which is why I prefer immediately moving the savings out of my current account. I’m not too harsh on myself, I’ll dip into my savings for necessities like food and travel, but I’ll stop myself when it comes to buying fun things.”

The 50/30/20 division is not a hard and fast rule so don’t be discouraged if you’re paying a lot more in rent, or your circumstances mean that your monthly spending is a lot higher than 30%.

Everyone’s personal situation will vary, and earning less or shouldering more responsibility doesn’t mean that saving isn’t an option for you! Figure out your finances and find proportions that work for you. 

Beyond the much loved (and despised) spreadsheet, several personal finance software tools can help you manage your spending, savings and debt, with the added benefit of having all your records in one place. This article has collated the top tools for varying levels of needs and priorities, at a range of price points. However, a few free tools to help you build a budget include the new People’s Princess Money Saving Expert and ChatGPT.

Halima, 26, works in tech and has embraced generative AI technology in many aspects of her personal life, including mapping out her finances.

“I don’t think people make the most of the power of AI, especially when it comes to personal finance. The fact that we essentially have a financial mentor at our fingertips is incredible – particularly in households where money isn’t really spoken about or where financial advice feels out of reach.”

“For me, tools like ChatGPT have been a game-changer. I can ask questions without fear of judgement, uncover trends in my spending behaviour, and create a financial plan tailored to my circumstances. I share my salary, goals and lifestyle, and it provides clear, actionable steps on what my budgeting should look like.”

“It’s allowed me to take control of my finances in a way that makes sense to me, and most importantly, it’s super accessible – I really think more people could benefit from using AI in this way.”

I must add a disclaimer that ChatGPT and other generative AI technology use an absurd amount of electricity and water. ChatGPT’s daily power usage is nearly equal to 180,000 US households and requires two litres of fresh water (to cool data centres) for every 10-50 queries. This is a problem because fresh water is a limited resource, and by 2050, two-thirds of the population is expected to suffer from water scarcity. Companies like Google and Amazon are placing their data centres in developing countries where vulnerabilities to water shortages are already heightened. That said, many people are using ChatGPT and similar programmes for things far less beneficial than managing their finances, however for all its potential benefits, generative AI should be used sparingly.

Marriage Privileges

Financial circumstances vary from person to person and a factor that can largely impact saving capacity for Muslim women is their marital status. The ‘single tax’ has been long-lamented online, with its claws reaching widely from the cost of groceries to tax benefits for married couples. Beyond being able to get through a pack of baby leaf spinach before it all spoils, there are many financial benefits to marriage for Muslim women, helpfully outlined by Maryam Akram in The Marital Rights of Women in Islam, that also allows for a greater ability to save.

An Amaliah Asks contributor, 30, who earns 50k AUD and has 173k AUD savings in cash and gold, drops her savings gems.

“Don’t do 50/50 in a marriage. Women shouldn’t be paying bills to live with a man haha. Don’t buy designer clothes or follow trends, buy high-quality clothes that last. Don’t try to keep up with the Joneses. I spend money on what’s important to me, not what will impress others.”

Of course, not contributing to household bills and rent in a marriage isn’t a choice available to everyone, and might not be what’s best for your particular situation. But Sofia is frank about the privilege that her marriage set-up has brought her. 

“I think people don’t talk enough about the privileges that come with marriage. I’ve been married for a while so I don’t have to contribute to household costs, rent and big bills alhamdulillah as my husband covers all of this. My money is my money and it hugely increases my savings capacity. It’s an unspoken financial privilege which knocks onto other areas of life, for example not having to chase money in your career aspirations because you’re not the breadwinner, and instead being able to invest your money into hobbies and joyful things. I also appreciate that not everyone’s set-up with their husband is like this, but it’s an important aspect to mention if we’re going to talk honestly about the ability to save.

I’m also aware of this when it comes to my single friends and try and do little things for them that a partner would do, like pay for their Uber to go home when it’s late, or treat them when we go out because I’m acutely aware of the many small moments in which I benefit from marital financial privileges and it’s my way of paying it forward.”

Fahima, 27, echoes some of the same sentiments, but from a perspective of those rights and responsibilities upon Muslim women.

“When it comes to marriage, we need to be aware of our Islamic rights and feel no shame in asking and implementing them. Your shelter, your food, your maintenance, your clothing, all within a limit, is your husband’s duty. Not every Muslim marriage is the same, some of us forego our rights for a better and bigger reason, and that is fine and entirely our choice. Spending on your husband and kids is a means for extra barakah. However, spending on our parents is an obligation, and it’s important to remain mindful of what responsibilities Allah ﷻ has ordained on us and remind those around you if they aren’t aware or try to make it out as otherwise. I always remind the women in my life to really consider who they spend and lend money to because I feel that women are susceptible to being too open and helping out our husbands and family members without thinking of the bigger picture.”

Lifestyle Considerations

Anyone can afford a house if they cut down on the avocado toast and cancel their streaming subscriptions. Just kidding. We live in a time of historic inflation levels alongside wage stagnation, which resulted in a cumulative real wage decline of 15-20% over two years, as well as high demand for a continuously dwindling housing supply. It’s deeply frustrating to hear the sentiment that you should live a dull life void of any recreational activities or creature comforts in pursuit of a seemingly impossible goal repeated over and over by people who bought their three-bed terraced house in the 80s on the equivalent of a £25k salary.

That said, if we want a fighting chance to build our savings for a car, a course, or (inshaAllah) a mortgage deposit, we need to be willing to consider our lifestyle choices and make some sacrifices in the short term to see long-term benefits. That’s not to say that the only way to live well in the future is to be miserable in the present, not at all. But we live in a time of unparalleled consumption, with limitless opportunities to spend on home gadgets, clothes, skincare and services. We are constantly marketed to as we wait for the tube, watch TV or listen to a podcast, as well as both through ads and within the content itself as we scroll on our social media platform(s) of choice.

Of course, we deserve nice things and to enjoy our day-to-day existence, but to build substantial savings we need to learn to cut through the noise and ignore the 56th Tiktok that has appeared on our For You Page flogging another ‘holy grail, absolutely life-changing’ product.

An Amaliah reader, 24, has saved £3k on a £38k salary and puts it simply, “live with your parents.” Not everyone has this privilege, and some would rather have the peace of mind that comes with having their own space. 

Shabna actually did move back home and credits that with her ability to buy a house. “It’s so hard to save for a deposit if you’re paying rent, especially in London. If it’s possible for you to move or stay home then do it! Yes, you’ll pay with your mental health,” she laughs, “but it’s worth it. I moved home during lockdown where I was able to save a lot anyway. Most friends I know who have bought had to move home or they’ve bought with a partner.”

I asked her how she was able to show enough restraint to afford a deposit, wasn’t she tempted to splurge on herself? “I don’t even physically move the money myself, it goes to savings through a direct debit, and I don’t like going through the effort of moving it back. I’m also pretty self-disciplined so I don’t need to do things like not have the savings account’s app on my phone or the card linked to my Apple Pay, though that can be useful for a lot of people.”

Having saved £200k on a £75k salary, another Amaliah Asks contributor, 29, recommends, “Save on items you can but give yourself the opportunity to spend on those things which make you happy! Set yourself spending limits and stay within them.”

Fahima suggests some lifestyle considerations that have helped her build up a healthy savings pot. “Financial independence and security should never be underrated. Whether or not your parents are well off or your husband takes care of the household finances, it’s important to have a job and have your own money since you never know what Allah has planned for you.

“I only spend within my means and I don’t use credit cards despite how heavily advertised they are to young people. Unless you’re completely confident that you can make each payment before the interest hits, I wouldn’t recommend them since they’re a short-term solution that leads to a long-term trap since they encourage lifestyle inflation.”

“I prioritise fun experiences but try to keep my lifestyle as simple as possible and even live below my means. When I do spend on the things I need I make sure they’re high quality and durable.”

“The majority of clothes you buy will end up in landfill in the global south, ask yourself if you really need the thing,” advises another Amaliah reader.

Marya gives me her hacks for cutting corners on subscriptions, “I’ve saved a lot of money by reviewing my non-essential costs. This doesn’t mean I don’t let myself have nice things, but, for example, I’m saving £13 by paying my Amazon Prime subscription yearly instead of monthly and £26 by doing the same for Audible. Audible has a New Year’s deal right now where you can get a subscription for £0.99 for the first three months then it’ll be the usual £7.99/month which still saves you £21 if you’re unable to pay for the year upfront. I save £42 annually by being on a Spotify duo plan, but you can also get a £120 gift card that would save you £23 on an individual plan!”

After I sent out a tweet lamenting the price of prescriptions (I was prescribed four medications at once), I found out about the NHS Prescription Prepayment Certificate. It allows you to get unlimited prescriptions for £32.05 for three months or £114.50 for the year. If my prescriptions average out to two per month, I end up saving £123.10. Another thing I deeply regret not taking advantage of beforehand is signing up to all the supermarkets’ loyalty schemes. I’ve always had a Tesco Clubcard, it easily gets the most airtime with ‘clubcard’ becoming synonymous with a loyalty scheme – probably because Tesco has the best Meal Deal by a country mile – but I’ve been shopping from Lidl for over a year now and have only just discovered their equivalent scheme. Offering up the data on my shopping habits in exchange for both general and personalised discounts, and freebies like free baked goods and long-life tote bags feels like a fair trade-off to me.

One Amaliah Asks contributor, 26, who’s saved £8k on just under £30k suggests, “Ask yourself before buying anything: would I rather have the thing or the money?”

Aaminah advises, “As a general rule you should try and save around 3-6 months of your living costs just in case the worst happens, for example, you lose your job.”

Blessings In Your Bank Account

It’s a lot to think about, I know. But it’s not an impossible thing to integrate into your lifestyle or something that’s only accessible to people on a six-figure salary. If there’s one thing you take from this, it’s that you should start now and start small! Be realistic, let yourself enjoy things, don’t go from zero to a hundred and only eat beans on toast from now on and never meet your friends for coffee.

One more thing to consider is charity. Zakat is obligatory, of course, and you’ll need to pay it on any savings you’ve accrued. Amaliah has a great guide on calculating your zakat, as well as a guide to paying zakat on gold. Beyond Zakat, the benefits of giving sadaqah are endless, and the Prophet ﷺ emphasised that, “Sadaqah extinguishes sin just as water extinguishes fire.” (Tirmidhi)

As Fahima put it, “You will never ever have less by giving to charity. Donating monthly and consciously is a very important part of managing your finances. I’d encourage sending money back home for those of us who know exactly where it’ll go.” I’d also add that it’s important to consider those in need at our doorsteps. Muslims and non-Muslims alike are struggling in our local communities. The Prophet ﷺ said, “Angel Jibreel advised me continuously to take care of the neighbour until I thought that Allah is to make him an inheritor.” (Sunan Ibn Majah) 

Always remember that Allah is Ar Razzaq (The Provider), and He can place endless barakah (blessings) in even the smallest amount of material wealth. Faith Space recently held an insightful talk with a lot of practical advice on increasing the blessings in your life.

Aaminah leaves us with some wise words, “I think lastly don’t be put off by hearing how much other people have saved etc. Everyone has to start somewhere and if you start today you will thank your future self.”