Ramadan is a month of spiritual cleansing. Arranging your finances this Ramadan could also support this purification – providing you do it right. In this article, we will discuss how best to optimise your finances during Ramadan.

Here is a summary of what we cover in the article:

• Being generous and giving charity with impact. We cover both Zakat and Zakat al-Fitr as well as Sadaqah.
• Plan your meals and follow the prophetic model.
• Gift and shop sustainably for your Eid and Ramadan celebrations.
• More tips on making the most out of your Ramadan, including istighfar (seeking forgiveness) which can also boost your wealth.

Give Charity

We as Muslims donate hundreds of millions during Ramadan and rightly so.

Ibn Abbas (RA) narrated, “The Prophet (peace be upon him) was the most generous of people, and he used to become more generous in Ramadan” (Sahih al-Bukhari).

So donate your Zakat if you haven’t already done so and increase in the amount of sadaqah (voluntary charity) that you give. More on these below.

Zakat

Zakat is the third pillar of Islam where Muslims purify their wealth and support charitable causes by donating 2.5% of their wealth every year. It is often given during Ramadan by many Muslims in order to maximise the rewards of donating during this blessed month.

For further information, here is our zakat FAQ series. You should definitely also check out our comprehensive zakat calculator.

Don’t forget Zakat al-Fitr.  This is a specific duty paid before Eid al-Fitr at the end of Ramadan by those who can afford it. Your local mosque should be able to advise you on the amount due.

Sadaqah

Sadaqah is a highly virtuous act of worship that has numerous benefits. It is important to bear in mind however that it doesn’t just refer to money. It is any charitable act towards another being, which could be as simple as a smile!

A neat way to increase in sadaqah is to declutter your current belongings. Donate the possessions that you have no real need of. Perhaps accept that you will never wear that unused shirt that has been sitting in your wardrobe for the past 5 years. Do make sure that anything you do donate however is of good quality.

Another way you immediately release some sadaqah money is by donating the money you would usually spend on lunch or coffee.

Also don’t be miserly and give generously! The below hadith is an important reminder to us on how charity does not decrease your wealth.

Abu Huraira (RA) reported: The Messenger of Allah, peace and blessings be upon him, said: “Charity does not decrease wealth” (Sahih Muslim).

Lastly, when donating think about how you can donate with impact. Charity is a big deal in Islam and we need to be strategic to ensure we make every penny count. We discuss this in a lot more detail in this whitepaper here.

Plan your meals

Follow the Prophetic eating habits [1]. Eat what is good for you, what is enough to sustain yourself but don’t overindulge. As the famous hadith says, fill a third of your stomach with food, another third with drink and the final third with air (Sahih At-Tirmidhi).

Keep it simple and prioritise homemade meals that you can prepare and store for later. This approach can minimise food waste and  will also free up time for you to engage in more ibadah.  Prepare a shopping list and stick to it- don’t let the empty stomach shop for you!

Also experiment with meat-free days. Not only does it really help cost-saving, it is also a healthier, lighter way of breaking your fast.

Gift and shop sustainably

Purchasing your Eid gifts early can save you money as you can look ahead for deals. It can also save you vital time, particularly in the last ten nights where you want to focus on doing ibadah. You don’t even necessarily have to go out and buy new things. Reusing current clothing, creating personalised gifts and simple sweet gestures can be more effective than the latest shiny new item.

For Ramadan and Eid decorations, reuse existing decorations or look for printable Ramadan decorations. Instead of buying decorations, you can spend quality time with your family by making them together. This will also give them a more personalised feel.

Make the most of Ramadan

As well as arranging your finances, do the best you can to make the most out of Ramadan. Spend time reading the Quran, engaging in salawat, and improving in taqwa.

Do istighfar (ask for forgiveness) which can also boost your wealth as per the following verses from the Qur’an.

‘Seek your Lord’s forgiveness, ˹for˺ He is truly Most Forgiving. He will shower you with abundant rain, supply you with wealth and children, and give you gardens as well as rivers (Qur’an 71:10-12).

Set your personal and professional niyyah (intentions) and targets for the upcoming year. Ramadan is a great time for this as during this month you are more God-conscious. This will enable you to align your targets to our ultimate goal as Muslims – seeking the pleasure of Allah swt and making it to paradise.

Summary

These are our tips on how best to arrange your finances this Ramadan. Done correctly, they can boost the rewards you can attain and help you to make the most out of this blessed month.  Let us know in the comments below if you have any other suggestions!

References

1. https://islamqa.info/en/answers/6503/eating-habits-and-diet-of-the-prophet-peace-and-blessings-of-allaah-be-upon-him
2. https://sunnah.com/bukhari:3554
3. https://sunnah.com/muslim:2588
4. https://sunnah.com/tirmidhi:2380