1st January 2026. New year, new goals, new expectations. Suddenly, everyone’s saving, investing, glowing up, and somehow also training for their next marathon. The new year starts with promise, but the pressure starts building up, too.

Talking about money can feel daunting, anxiety-inducing, or let’s be honest, just plain boring. Yet it’s one of those things that shapes our lives, whether we choose to engage with it or not. It’s easier to bury your head in the sand or quietly wonder if you’ll ever manage to save enough for the life you want. But now is the perfect opportunity to reset our intentions – and that applies to finances as much as anything else.

There’s a lot of demand this time of year to spend, spend, spend. The January sales push us into bagging a bargain on things we don’t really need; retail therapy is an even more tempting coping mechanism in these dark, short winter days and every influencer under the sun seems to be telling us that we need a whole new wardrobe to match the new person we are becoming this year.

So, this is our guide to cut through all that noise. This isn’t a hustle-culture, “never buy coffee again” guide. This is a realistic, Muslim-girlie-approved approach to saving in 2026, based on intention, balance and doing what you can.

Saving… but Make it Halal

Before we dive into practical tips on how to be more financially savvy with your money, it’s important to go back to basics and understand what Islam says about money. Money is an amanah – a trust from Allah ﷻ.

In today’s society, the idea of accumulating wealth is frequently portrayed as the ultimate measure of success. A view which is consistently reinforced by consumerism, social media culture and peer pressure. But wealth is viewed very differently in Islam. Wealth and money are a means, not the end goal.

As Muslims, we are not prohibited from growing our wealth, but we are told to use it well, for our family and wider social good.

So first things first, we need to change our mental state. We need to get rid of the scarcity mindset that is perpetuated by social media, as it can be debilitating to our perspective on wealth. Not only can it lead to anxiety about not having enough, but it can also impair our decision-making.

We should instead remind ourselves that Allah is Ar-Razzaq – the ultimate provider of all things spiritual but also material. If we handle our money with the correct intentions, then we don’t need to buy into fearmongering about not having enough, running out, or constantly comparing our provision to others.

That’s why accruing savings is something that we should approach positively as Muslims. Saving in Islam is not about becoming stingy or saving money for the sake of it. If anything, Islam encourages us to avoid extreme stinginess and excessive spending. It all comes down to balance. And saving is really about peace of mind.

We save so that:

We’re not constantly stressed
We’re not reliant on debt
We can help ourselves and others when life happens

Islam is all about balance. We spend, enjoy, give, save and invest. No extremes.

So, How Do We Actually Save Islamically?

Whilst the financial system, particularly in the West, is not catered to Muslims, this is not to say that we do not have options. There are ways to save, grow, and protect your money while staying true to Islamic principles.

Islamic Savings Accounts

These accounts are designed to avoid interest (riba) while helping you build a safety net. The returns aren’t huge, but that’s not the goal. The focus is on consistency and discipline in your savings. Even small amounts saved regularly can grow over time, giving you peace of mind and a foundation for the future.
If you have a conventional bank account, you can request an annual statement showing how much interest it earned. This can help you determine how much needs to be purified or given in charity, because money acquired through interest is unlawful wealth, and it is Islamically prohibited to make personal use of any of it.

Sukuk (Islamic Bonds)

Sukuk are often described as Islamic bonds, but a simpler way to think about them is this: you’re helping fund a real, physical asset, and in return, you earn a share of the profits it generates.

An example of this was in 2025, when the Egyptian government issued a sukuk bond to raise funds, as they needed money. Instead of borrowing at interest, the government issued a sukuk bond and asked investors to lend it money (i.e., invest in its sukuk). The government used a piece of land by the Red Sea as the backing, which meant that investors who bought the sukuk effectively owned a share in the benefit/use of that land. The Egyptian government was obliged to then pay investors their returns based on that arrangement. So the investors in that sukuk were not just lending money; their investment was tied to a real, physical asset (land).

Because they are backed by real assets, sukuk are generally considered more stable than investing in individual companies (also known as stocks), making sukuk a good option if you’re looking for steady, long-term growth without the high risk.

Halal Investment Funds and ETFs

If choosing individual stocks feels confusing or overwhelming, halal investment funds and Exchange Traded Funds (ETFs) offer a much simpler alternative.
They invest in a wide mix of companies that meet Islamic guidelines – no interest, gambling, alcohol, and other prohibited industries.
As your money is spread across many companies, you spread your risk and reduce the impact if any single company performs badly. Investing in ETFs is a simple, hands-off way to grow your wealth over time while also keeping your investments halal.

Quick Zakat Reminder – What Is It?

It’s worth keeping in mind that as your savings grow, so does your responsibility. Zakat is one of the five pillars of Islam and is a way to purify your wealth and support those in need. Importantly, it is not just for the rich. It is a tax on your total net wealth accumulated over the past year and is also one of the subtle ways that Islam encourages us to use our money for social good – either you do it yourself, or it’ll be distributed via your Zakat!

How Zakat Fits Into Your Financial Planning

1. Treat it like a savings goal

Set aside your Zakat gradually, rather than waiting until the end of the year.

2. Calculate the total value of your Zakat

Work out what you own. So add up all your Zakatable assets, such as:
• Cash and savings in bank accounts
• Gold and silver above personal use
• Investments and business inventory
• Money owed to you (if you expect it to be repaid)
Take away what you owe – Subtract any immediate debts you must pay soon, like bills or short‑term loans.
Check the nisab – see if what’s left is equal to or more than the nisab threshold (the minimum amount that makes Zakat compulsory).
Calculate 2.5% – If your net total meets/ exceeds nisab, calculate 2.5% of it. That’s the amount you owe in Zakat.

There are a number of websites which offer an online calculator, so you don’t have to do all the maths yourself, like the National Zakat Foundation’s calculator.

3. Automate or schedule it

Consider automatic transfers to a Zakat fund or charity
Or set aside a small portion each month to make it manageable

4. Distribute wisely

Pay directly to those in need or through trusted charities.

Why Zakat Matters

Paying zakat is more than a duty. As we said at the start, remember that our wealth is an amanah (trust), and money should benefit the community, not just ourselves. Making it a regular habit keeps your wealth purified and our obligations fulfilled.

Also Read:

8 Muslim Women Tell Us How They Optimise Their Savings

How to Calculate Your Zakat

A 10-Point Guide to Paying Your Zakat This Ramadan

A Guide to Paying Zakat on Gold

Financial Literacy (Without the Finance Bro Energy)

Financial literacy isn’t about knowing fancy terms. It’s about understanding enough to feel confident with your money and not feel lost or taken advantage of. Regardless of your age, whether you are still in school, or out of university, a young mum or your children have moved away, learning about money as an adult is not embarrassing. It’s powerful.

So, how can we actually get financially literate? Start small. Like, really small.

Learn the Basics

What even is interest? Why is it haram? Why do credit scores matter? What’s the difference between saving and investing? These might seem simple, but they’re the nuts and bolts of money management. For more resources on the basics, follow our page – the Muslim Finance Girlies!

Look At Your Money (Track Your Spending!)

You don’t need a fancy system to track your money. Just notice where it is going. The “little” things add up fast. Differentiate between these three categories:

Needs – Essentials you must spend on, like rent, utilities, groceries, transport and basic clothing. You can’t live without these.
Wants – Non-essential spending that makes life enjoyable, like eating out, hobbies, TV streaming platforms, travel or new gadgets. These are flexible and can be adjusted depending on your budget.
Saving / Giving: Money you set aside for the future: emergency funds, investments, or charity/zakat. This category ensures you’re building security and barakah in your finances. A common approach is: 50% needs, 30% wants and 20% saving/giving.

Set goals that actually excite you: This could be Hajj, travelling, or a new car. Goals give your money direction.

Budget in percentages: “10% savings” feels way nicer than “£300 a month.” Percentages grow with you.

Start investing gently: You don’t need a lot of money. Start small, learn as you go, and stay consistent (follow Muslim Finance Girlies to keep you regularly updated!).

Celebrate tiny wins: Saved £5 by making coffee at home? That counts. Progress is progress.

Lifestyle Shifts That Actually Help You Save

It would be disingenuous to say social media hasn’t influenced us over the past few years, pushing us to splurge on the latest skincare craze, becoming Pilates babes, or obsessing over matcha. Meanwhile, anyone careful with their money often gets labelled “cheap.”

But being frugal isn’t being cheap. Frugality means being intentional; being cheap means cutting corners that hurt your quality of life. There is a big difference.

In Islam, we know the importance of being intentional. Doing things with purpose and mindfulness is something which is deeply valued in Islam. The Prophet ﷺsaid: “Actions are judged by intentions…” which means that what matters most in Islam is why you do something, not just what you do. Even small actions like dipping into your savings pot to help a family member are seen and rewarded by Allah.

Simple Habits That Make Saving Easier

Pay yourself first: Automate your savings so it’s gone before you can spend it.

Audit your subscriptions: If you forgot you had it, you probably don’t need it.

Cook at home more (we are not saying always!): Balance, not perfection.

Buy less, but better: Quality over quantity saves money long-term.

Question convenience spending: Do you need that Uber, or is walking actually fine?

Let’s Talk About Privilege

Not everyone has the same opportunities to save, invest, or build wealth, and it’s something worth keeping in mind the next time we find ourselves comparing our financial journey to someone else’s. Some of us benefit from stable incomes and family support and have fewer financial responsibilities, which makes getting ahead easier. These advantages are privileges, and they play a big role in shaping access to wealth.

Acknowledging our privilege isn’t about guilt; it’s about responsibility. With more wealth comes a duty to use it wisely, to help others where we can and manage it as an amanah (trust) from Allah.

Privilege calls us to be more generous, compassionate, and mindful in how we handle what we’ve been given.

What does Islam ask of us? Not to hoard our wealth but to spend with intention and share what we have. That can look like:

giving sadaqah regularly (small + consistent = loved by Allah)
supporting local businesses
funding educational programs or scholarships through trusted charities
donating to zakat-eligible causes
investing in Islamic impact fund projects

Or non-monetary ways of supporting and sharing your privilege could be:

sharing knowledge
mentoring or volunteering
using your platform to uplift others

Cost Of Living

We won’t pretend that saving is easy right now. The cost of living has risen sharply, inflation has hit hard, and almost everything costs more than it did a few years ago. In fact, research shows that the current financial climate has a disproportionate impact on Muslim women. We get it – for many people, the priority isn’t building wealth; it’s simply getting through the month. So if saving feels slower, harder, or less consistent, that’s not a personal failure. It’s a reflection of the unfortunate economic reality that we’re living in.

Progress in this context looks different, and that’s okay.

What Can Help?

Use Your ISAs (Individual Savings Accounts)

They exist for a reason, so if you’re able to, make use of them. In the UK, ISAs allow you to save or invest in a tax-efficient way, helping you keep more of what you earn. Even small, regular contributions can make a difference over time. There are similar accounts across the world. However, be mindful that your usual ISA at your bank account will generate interest, which isn’t halal. To keep your money compliant with Islamic principles, there are Shariah-compliant ISAs that let you save and invest your money without earning interest, but allow you to benefit from the tax efficiency.

Investing

Investing is simply a way of putting your savings to work instead of letting them sit still and lose value to inflation. This doesn’t mean taking big risks or needing lots of money to start. The key is consistency, patience, and choosing options that align with your values and risk tolerance. For all things investing, follow our page – the Muslim Finance Girlies, where we break down complex financial concepts into simple, easy-to-digest content.

Switch Brands and Shop Smarter

Cheaper doesn’t always mean worse. Trying supermarket own brands, buying second-hand, or shopping more intentionally can free up small amounts of money that quietly add up.

Extra Income (With Boundaries!)

Side hustles can help cushion rising costs, but they shouldn’t come at the expense of your health or well-being. Rest is also productive. We shouldn’t romanticise burnout or turn every free moment into work; sustainable progress matters more than constant hustle. But you might want to think about easy ways that you can earn extra cash whilst protecting your rest, like selling clothes you don’t wear anymore online.

Saving isn’t about being perfect. It’s about showing up, being intentional, and trusting that small steps add up. Remember, you are running your own race; comparison will only distract you, and your future self will thank you for starting (it is never too late to start!).

Most importantly, it’s about trusting in Allah – Ar-Razzaq, the Provider and Al-Qayyum, the Sustainer.

So, even if saving in 2026 might look slower, messier, and far less aesthetic than social media suggests, that’s okay. Do what you can, with what you have. Be kind to yourself. Be mindful with your money. And remember, barakah matters more than anything.

Muslim Finance Girlies

Everything You Need to Know About Savings – A Complete Guide