It is that time of the year where friends, family and colleagues will be asking what our new year resolutions are. The secular new year holds no special significance for Muslims who follow a lunar calendar. However, many of Muslims will have time on their hands before starting a new chapter in their lives which means that this is the opportune time to plan the time ahead. Three import plans to make from a financial perspective are the following:

Zakah. If an individual has excess wealth in their possession for an entire lunar year then zakah would be obligatory provided the amount is equal to the nisaab. Now would be a good time to take stock of when the time for paying zakah will be and to plan accordingly. The beginning and end of the zakah year should be developed if it hasn’t been done yet. Some good resources regarding zakah can be found on the websites of SANZAF and Jamiatul Ulama.

Wills. Males and females inherit different amounts based on their relation to the deceased. These shares have been set by Allah (Qur’an 4:7). However, if a Muslim in South Africa decides not to prepare a will, their estate will be distributed in terms of the laws of South Africa, which are contrary to Islamic ethics (shariah). Therefore, it is imperative to ensure that a will is set up. Muslim religious bodies such as the MJC and Jamiatul Ulama offer advice on wills from an Islamic ethical perspective (shariah). Your financial advisor should also be able to assist you in this regard.

Investments. Investments along with an investment timeline would depend on the particular goals of an individual. If someone invests for a holiday at the end of the year it may look a bit different to investing for retirement. Now will be a good time to reorient investment strategies to ensure that the investment philosophy is in line with current goals and, in conjunction with a financial advisor, ensure that these investments are on track to finance those goals, dreams and objectives. Additionally, those investments should be in line with Islamic ethics (shariah). There are many investments in South Africa and abroad which have been vetted for shariah compliance by qualified scholars. Any personal, long-term investments should also be revaluated periodically for shariah compliance as they may change with new developments.

Allah knows best