My Wake-Up Call

I remember sitting in my nonprofit’s office in 2020, staring at a donor’s request: “Can you accept stock donations?” I had no idea how to answer. Despite running a successful organization, there was so much about finance I still didn’t understand. That question became my wake-up call.

While others were perfecting their sourdough starters during the pandemic, I found myself reading books about personal finance and money management. I searched everywhere for resources that approached financial literacy from an Islamic perspective, but came up empty-handed. So I started with what was available – books like “The Latte Factor” by David Bach and John David Mann – and began the work of filtering these mainstream financial concepts through an Islamic lens. This journey would ultimately transform how I thought about money, wealth, and giving as a Muslim woman.

From Checkbook Charity to Strategic Impact

I remember the first time I learned about Donor-Advised Funds (DAFs—charitable giving accounts that let you contribute assets and recommend grants to charities while receiving an immediate tax deduction). DAFs truly transformed how I distributed my zakat. I realized I could give significantly more than previous years – not because I earned more, but because I finally understood how to give smarter. Instead of just writing checks, I learned to donate appreciated stock, reducing my tax burden while increasing my charitable impact.

This financial knowledge wasn’t just about personal gain—it revealed a critical connection between money management and serving others. Had I understood this earlier, it would have transformed my early career decisions. For instance, when I first started in the nonprofit sector, I worked for two years without taking a salary because I mistakenly believed that being paid would somehow diminish the spiritual rewards of my work. I now realize this mindset was counterproductive. By undervaluing my own financial well-being, I was actually limiting my long-term capacity to give and serve. Financial literacy taught me that being compensated fairly and managing money wisely actually amplifies our ability to help others sustainably.

Allah tells us in the Quran:

“Those who spend their wealth in the cause of Allah and do not follow their charity with reminders of their generosity or hurtful words—they will get their reward from their Lord, and there will be no fear for them, nor will they grieve.” [Surah Al-Baqarah: 2;262]

The Ripple Effect of Strategic Giving

Let me share a recent example that demonstrates the power of intentional financial planning. Last year, an organization that supports Deaf and Deaf+ Muslims in our community was raising funds for critically needed programs. Their initiative focused on expanding American Sign Language resources and developing Culturally & Linguistically Appropriate Services tailored to our diverse Muslim community. The organization had identified significant gaps in accessibility that many community members faced when participating in religious gatherings, educational workshops, and social events.

“Those who spend their wealth in the cause of Allah and do not follow their charity with reminders of their generosity or hurtful words—they will get their reward from their Lord, and there will be no fear for them, nor will they grieve.” [PC: Christian Dubovan (unsplash)]

The impact multiplied beautifully beyond my initial contribution. Today, the organization offers weekly ASL classes, has hired Deaf instructors, and has developed specialized resources that serve many families who previously felt disconnected from community activities.

This experience reinforced my belief that financial empowerment isn’t just about personal security—it’s about expanding our capacity to support initiatives that align with our deepest values and strengthen our community bonds.

The Prophetic Model of Financial Management

Abu Hurairah narrated that the Prophet ﷺ said: “While a man was in a barren tract of land, he heard a voice in a cloud saying: ‘Irrigate the garden of so-and-so.’ The cloud moved and poured its water over a rocky area. The water collected in a channel, so the man followed it and found a person standing in his garden, directing the water with his shovel. He asked him: ‘O servant of Allah, what is your name?’ He said the name that was heard from the cloud. He then asked: ‘Why do you ask about my name?’ He replied: ‘I heard a voice in the cloud which poured this water, saying: “Irrigate the garden of so-and-so,” mentioning your name. What do you do with it?’ He said: ‘Now that you have asked, I look at what it produces and give one-third in charity, my family and I eat one-third, and I reinvest one-third back into the garden.'” [Sahih Muslim]

The Prophet Muhammad ﷺ showed us that smart financial management enables greater giving. The gardener’s secret in the above hadith wasn’t just in giving – it was in his systematic approach. He divided his harvest into thirds: charity, family needs, and reinvestment. 

I’ve adopted this principle in my own life, creating specific budgets for sadaqah while ensuring I’m also building long-term financial stability.

Practical Steps to Get Started

For young Muslims just starting their financial journey: You don’t have to wait until you’re “wealthy” to make a difference. Start with these practical steps:

1. Set up automatic transfers for charity (even if it’s just $5/month). Use platforms like A Continuous Charity or LaunchGood’s monthly giving program to automate your sadaqah.

2. Learn one new financial concept each month. Resources I recommend:

• Sign up for Fatimah Jangana’s Finance Girlie’s newsletter Financial Literacy for Muslim Women
• “Smart Women Finish Rich” by David Bach
• The “Islamic Finance Guru” podcast with hosts Mohsin Patel & Ibrahim Khan
• Follow @ZoyaFinance and @itsmalakkudaimi on social media for regular Islamic finance tips
• Join Sheikh Joe Bradford’s community to understand your Islamic education and financial journey

3. Join or create a giving circle. A giving circle is a form of collective philanthropy where a group of individuals pool their money, time, and knowledge to support causes they care about, amplifying their impact through shared decision-making and community-based giving. Organizations like the American Muslim Community Foundation (AMCF) can help you start a giving circle with friends or family. My friends and I started with just $100 each per year, and our collective impact was far greater than what we could do individually. 

4. Track your giving and watch how it grows with your financial knowledge. Use apps like Mint or YNAB to track both your spending and your giving. I use a simple Google Sheet that I review annually. And, yes, I have seen my giving grow year after year. 

5. Study the prophetic examples of combining commerce with generosity. Read about Khadijah (RA) and how she used her business acumen to support the early Muslim community. Read about other Muslim women who gave generously. Re-read the Seerah with this lens. Books I have enjoyed: 

• Khadija Bint Khuwaylid (The Age of Bliss) by Mehmet Buyuksahin
• Women Around the Prophet by Muhammad “Ali Quib
• Muhammad: His Life Based on the Earliest Sources by Martin Lings

The Divine Connection Between Wealth and Impact

Remember the cloud that was commanded to rain on the gardener’s land? That wasn’t just a story about blessings – it was a lesson about the divine connection between smart money management and impactful giving.

It’s 2025, and I’m still learning. But I know this: understanding money isn’t just about materialism – it’s about maximizing your ability to help others. Whether it’s supporting Palestine relief efforts, contributing to a sister’s medical fund, or helping establish a new masjid – your financial literacy is a tool for change.

Your Next Steps

Want to dive deeper? Here are some immediate actions you can take:

1. Calculate your actual zakat properly – Islamic Relief and Zakat Foundation offer free zakat calculators online
2. Open a no-fee investment account – Look into halal options at Sharia Portfolio or Azzad Asset Management
3. Join an online Islamic finance community – Muslim Women and Finance on Facebook has members sharing tips
4. Schedule a financial “date” with yourself monthly – Set aside just 30 minutes to review your finances and giving goals
5. Attend a workshop – Organizations like Sharia Portfolio and AMCF offer regular webinars. Sign up! 

The world needs more Muslims who understand both wealth creation and generous giving. Start now, start small, but start with intention. When you combine financial knowledge with the desire to serve, you unlock a powerful form of ibadah that can transform not just your life, but your entire community.

The best investment? It’s investing in your ability to help others.

Related:

– Money And Wealth In Islam: The Root Of All Evil?

– 3 Urgent Financial Questions to Ask A Potential Spouse