7 Financial To-Dos Every Muslim Should Complete in 2025

2025 is here, and with it comes the opportunity to set your financial priorities straight and align them with your personal goals and faith. As Muslims, managing wealth isn’t just about making money—it’s about doing so in a way that brings barakah (blessing), fulfils your responsibilities, and positions you to give back generously.

Whether you’re looking to save for Hajj, grow your halal investments, or create a zakat plan, this checklist will help you tick off the key financial tasks that matter most in 2025. Let’s start the year strongly and set ourselves up for success in both this life and the hereafter!

Here’s the list in brief:

1. Audit your spending
2. Make sure your finances are halal
3. Get zakat ready
4. Review your pensions
5. Do your legacy planning
6. Use your tax-free allowances before you lose them
7. Review your investing strategy

1. Audit your spending

As the saying goes, you can’t change what you don’t measure. The first step for getting your finances in shape is to go through your spending, line-by-line if need be. Pay particular attention to the regular payments you have starting with the highest value ones and check if:

1. They are still needed (in the case of subscriptions)
2. You are getting the best price (in the case of the stuff you need)

When it comes to large recurring payments such as rent or Islamic mortgages, car insurance and utilities deals, do 2 things:

1. Set a reminder on your phone for before they are up for renewal
2. Use comparison tools such as MoneySupermarket and our Islamic mortgages compare tool to make sure you’re getting the best deal

Last year, Ibrahim saved himself thousands by remortgaging his Islamic mortgage – for more on this, check out this video we made with tips on how you can do the same.

2. Make sure your finances are halal

Haram finances can block your duas from being answered, so it’s essential to transition away as soon as possible. Let’s tackle 3 of the most common issues:

1. Mortgages – Having a haram mortgage is, well, haram. You might be feeling guilty about it, but make 2025 the year where you decisively get rid of it. Explore some halal options instead. 
2. Savings accounts – Conventional savings accounts are not permissible as they pay interest. Consider Islamic savings accounts instead and/or halal fixed income alternatives here.
3. Career – If your job may (or definitely does) involve questionable practices, now’s the time to explore halal alternatives. More on how to identify whether your job is halal or haram here and here is a list of 13 halal jobs that can pay out over 100k+.

With Ramadan just around the corner, now is the time to start purifying your finances to avoid blocking your duas from being answered and opening the door to attracting barakah to your wealth.

3. Get ready for Zakat season

We’re less than 2 months away from Ramadan 2025 and it’s typically the time most people pay their Zakat. However, how many of us know how much impact our zakat is having? Are we giving strategically or are we donating emotionally to whichever advert we see first?

This year, let’s change our approach and start donating to maximise impact. Don’t just give it to make yourself feel better. Here is a whitepaper Ibrahim wrote a few years ago where he set out an approach on how we can give charity better and here is our Charity Clarity Guide from 2024.

4. Review your pensions

We ran a survey a few years ago which suggested that Muslims in the UK are sleepwalking into losing £13 billion over the next generation due to not having a pension. 

So the first thing you can do here is start opting in to your workplace pensions (if you haven’t already). The biggest reasons Muslims reported not having a pension were due to shariah-compliance concerns so here is a really simple guide on how to ensure your pension is halal. For those considering a DIY pension, we have a guide on SIPPs here.

Now moving on to those that have pensions. In the UK, there is an estimated £31bn in pension accounts that have been lost. If you think you’ve lost track of one of your pensions, there is a free Pension Tracing Service by the government that you can use here.  

Finally, if you’re over 45, it’s a good idea to head over to the Gov.uk state pension forecast page. You’ve got until April 2025 to plug any gaps in your National Insurance contributions going back to 2006. These contributions directly affect how much state pension you’ll receive, so filling in any gaps now could make a big difference later. After the deadline, you’ll only be able to make up for the last six tax years—so act now while you can!

5. Do your legacy planning

For Muslims, having an Islamic will is a religious imperative if you have something to bequeath so make this the year you get one. There’s research that shows that £9,700 is the average cost of dying without a will according to mainstream will-writer Farewill but the cost to you as Muslims would be greater if your estate isn’t distributed according to Islam. For more on Islamic wills, check out our guide here.

Plus with the recently announced inheritance tax changes in the Autumn Budget, making sure you have a tax-efficient estate plan has only become more important. We’ll be sharing more on this front in the future, so stay tuned for that and subscribe to our newsletter down below if you haven’t already.

6. Use your tax-free allowances before you lose them

Make the most of your tax-free allowances before the tax year ends. Use your ISA allowance to shield savings or investments from tax, and don’t forget the capital gains and dividend tax-free thresholds. These reset each tax year, and if you don’t use them, they’re gone forever.

7. Review your investment strategy

You should regularly review your investment strategy to make sure:

1. It still aligns with your current financial objectives
2. It still makes sense with current market conditions

Now to be clear, we’re not advocating for trying to time the market or having a short-term mindset when it comes to your investments. Rather we think it is prudent to regularly check that your investment strategy isn’t diametrically opposed to the market’s direction.

Mohsin spent some time over the last month digging into Wall Street’s analysis and predictions for 2025 and has extracted 5 key findings that investors should be aware of. He’ll personally be adjusting his investment strategy accordingly and has filmed a video spilling the beans which will be out on our Youtube this weekend so stay tuned for that. 

Final thoughts

Start 2025 strong by ticking off these 7 essentials. Do you think we missed anything important? If so let us know in the comments.

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