To Save or to Invest?

Assalamu Alaikum girlie! 🌸

Let’s say you get a surprise bonus - or you finally paid off your student loan and suddenly have extra cash sitting in your account.

First thought:

Great question.
And I’m gonna give you my exact framework, because both saving and investing have a role. But they’re not twins.

One keeps you safe.
The other lets you fly.

Let’s break it down.

Saving = Safety

Saving is where we start. Always.
Because life will life.

Your job might get weird.
Your car might randomly eat $800.
Or a medical bill shows up at the worst possible time.

That’s where the emergency fund comes in.

My Saving Framework:

✅ Step 1: Emergency Fund

• Choose your goal: 3, 6, or 12 months of expenses

• Keep it liquid (meaning: accessible when needed)

• Do not invest your emergency fund- it's not meant to “beat the market,” it's meant to have your back when life gets unpredictable

I personally don’t promote HYSA (High Yield Savings Accounts) because they pay interest, which is not halal. That’s not a compromise I make.

I’m currently researching the best halal alternatives! Keep an eye out for some recommendations Inshaa Allah!

The primary objective of your e-fund isn’t to make you money. It’s supposed to protect your peace.

✅ Step 2: Sinking Funds
These are your “I-know-this-is-coming” accounts.
Vacay with the girls?
A wedding next year?
Big move? Tech upgrades? Umrah?

Make a list, set a goal, divide it by how many months you have, and save toward it monthly.

You can use folders in your banking app, or go old-school and track it in a spreadsheet.
Either way: label it and be consistent.

✅ Step 3: Know When to Stop Saving
Yup. I said what I said.

As much as I love a good saving plan, I don’t believe in pilling up excessive amounts of cash. That’s not strategy, that’s anxiety disguised as “discipline.” Once you’ve reached your goal, it’s time to dive into the next level!

Investing = Growth

Once you’ve got your emergency fund locked and your savings goals mapped out?

Start investing. Immediately.

Even if it’s $50/month.
Even if you “don’t know enough.”
Even if you feel nervous.

Compound growth takes time. So the earlier you start, the more your money can work for you while you’re sipping matcha and minding your business.

What You Can Do Do This Week:

a. If you don’t have an emergency fund

💡 Decide how many months of expenses you want in your emergency fund
Not what Instagram says. What actually fits your life.

💰 Open a separate account for each goal
You can even nickname it “Emergency Only 🚨” or “Wedding 2026” (after e-fund) - whatever helps you keep your hands off it.

b. If you have an emergency fund

📈 Commit to investing a set amount monthly
$100, $250, $500 - whatever you can. Just start.

Want to build your financial future?

Book a consultation, let’s create a strategy so you can finally reach your financial goals.

Your #1 fan,

Fatimah