Major Principles in Islam: Seeking Halal Income (part 2)
Seeking halal income
Earning a ḥalāl living, which is called al-kasb in Arabic, is a very important topic related to everyone’s business transactions, dealings, sales, and so on. It’s essential to understand what is permissible, what is not, the boundaries, the details, and so forth.
As I mentioned last time, the first to write on this topic was Muhammad ibn al-Hasan, the student of Abū Ḥanīfah. He himself was a mujtahid, a great scholar in Islam. He wrote not a huge book, but a small treatise, under the title al-Kasb, meaning “earning”.
This was in the second century after hijrah. Since then, many scholars have written on the topic. Among them was Imām al-Ghazālī, who lived in the fifth century (d. 505 AH). He dedicated a substantial chapter to this subject in his famous work Iḥyā’ ‘Ulūm ad-Dīn (The Revival of the Religious Sciences). I will share a summary of that chapter with you in a future session, in shā’ Allāh, as the original is quite detailed and extensive.
First we will look at Imām Muhammad ibn al-Hasan al-Shaybānī’s work on al-Kasb.
Categories of earning
He beautifully divided earning into four categories:
- Obligatory (farḍ)
- Recommended (mustaḥabb)
- Permissible (mubāḥ)
- Forbidden (ḥarām)
Based on this classification, we can examine our own transactions: where do they fall? Are they in category one, two, three, or four?
He mentioned that seeking the ḥalāl is obligatory, but to what extent? He said, to the extent that it is sufficient to cover your needs and responsibilities. If you are married, then your wife. If you have children, then your children. If you have elderly parents you are responsible for, then them as well. So, seeking provision to cover your responsibilities is an obligation. What about single women who have dependents? It is responsibility of the men in their families to look after them. If there are no male relatives, then it becomes the duty of the state. However, if the woman is young and able, she may work to support herself and those in her care.
Not seeking provision becomes a sin
What happens if someone refuses to work, he decides he has no interest in earning, and chooses to stay at home doing nothing?
If he is alone, with no dependents, then it becomes a separate discussion. But most of us have people under our care. If someone has responsibilities but fails to fulfil them, and does not work or try to provide for those under his care, then he is neglecting an obligation, and he will be sinful. It is recorded as a sin against him.
Just to illustrate: if someone has the time, but decides not to pray, saying, “I have nothing to do, but I won’t pray,” they are neglecting their obligation. That is a sin. Or if someone is watching TV, a film, a match or snooker, and they miss their ṣalāh, they are sinful. This shows how neglecting an obligation results in sin.
Obligations vs sunnah
Fulfilling an obligation is highly rewarding, like praying dhuhr on time. Yes, praying the sunnah after dhuhr is also rewarding, but the reward for the farḍ is much greater than the sunnah. There is no comparison between them.
I mention this because when we wake up early, prepare ourselves, and go to work, this is fulfilling an obligation. Seeking ḥalāl sustenance is fulfilling our farḍ. Any extra work is nafl, additional.
So, working to meet your needs and your family’s needs is obligatory. Needs, and I underline this, needs, not luxuries. We will come back to that later when discussing whether earning beyond your needs is an obligation (it is not).
The example of the Prophet ﷺ
Fulfilling obligations is required from every single person.
When we look at the sunnah of the Prophet ﷺ, we see his generosity was beyond our comprehension. He was so generous, and never said “no” to someone who came asking for financial support.
There’s a story where he gave someone a huge flock of sheep, so many that the man asked in disbelief, “Are you mocking me? All of this for me?” When the Prophet ﷺ replied he was genuinely giving it all to him, that led the man to embrace Islam.
We also find many examples in the sunnah where people would come and ask for help, and sometimes even return more than once. Especially in Madinah, when the Prophet ﷺ had access to more financial means, he would assist them.
Even in his Farewell Ḥajj (year 10 AH), people would come and ask him for financial assistance. This shows us the needs in the community and how he responded to those needs. But the Prophet ﷺ also gave direction and advice. For example, if a young person came asking repeatedly, he would help the first time, but not the second or third. Instead, he would say something like:
“Take an axe, go to the woods, chop wood, sell it in the market. Be self-sufficient and do not humiliate yourself by constantly asking people for help, when you are able to help yourself.”
This advice shows the balance of Islam, between compassion and responsibility.
To seek a ḥalāl livelihood is not merely recommended, it is a farḍ for those who have dependents. Failing to do so is sinful. Just as praying is a daily obligation, so is providing for those under your care.
And in doing so, you are following the way of the Prophet ﷺ, who said:
لَأَنْ يَحْتَطِبَ الرَّجُلُ حُزْمَةً عَلَى ظَهْرِهِ، فَيَبِيعَهَا، فَيَكْفِيَ بِهَا نَفْسَهُ، خَيْرٌ لَهُ مِنْ أَنْ يَسْأَلَ النَّاسَ، أَعْطَوْهُ أَوْ مَنَعُوهُ
“It is better for a man to take a rope and bring a bundle of wood on his back and sell it than to ask people, they may give him or refuse.”
Sahih al-Bukhari
Let us be among those who uphold their responsibilities, earn ḥalāl income with dignity, and follow the prophetic path of generosity, self-reliance, and excellence in conduct.
The prophetic model of self-sufficiency
The Prophet ﷺ actively helped people develop a mindset of self-sufficiency, to be self-employed, entrepreneurial, and independent.
There are many examples where he encouraged people to start their own businesses. One instance involves a young man who came to the Prophet ﷺ asking for financial support, once and then again. The Prophet ﷺ realised the man was young and capable.
He asked him,
“Do you have any money?”
The man said, “No.”
“Do you have anything to sell?”
The man replied, “Only a large wooden bowl and a small rug at home.”
The Prophet ﷺ told him, “Go and bring them.” The man returned with the items. The Prophet ﷺ took them in his hands and began an auction:
“Who will buy these two items?”
Someone said, “I’ll give one dirham.”
He said, “Who will increase?”
Another said, “Two dirhams.”
And the bidding continued.
This event also shows us that auctioning is ḥalāl, because the Prophet ﷺ himself did it.
He sold the items for three dirhams, then gave the money to the man. Paraphrasing, the Prophet ﷺ said something along the lines of:
“Take this money. Use part of it to buy food, and the rest to buy an axe. Then go chop wood, sell it in the market, and trade.”
He added:
“I don’t want to see your face for fifteen days.”
Fifteen days later, the man returned with some surplus money, perhaps ten dirhams. The Prophet ﷺ told him to buy food and clothing for himself and his family, and reinvest the remainder into his business.
This laid the foundation for sustainable living and reinvestment. It was the Prophet ﷺ who taught them to divide wealth — one-third for reinvestment, one-third for personal needs, and one-third to save.
Trade, agriculture, and manufacturing encouraged
There are many narrations praising the best types of earnings — from trade, agriculture, and manufacturing. Islam values productive, ethical business. The Prophet ﷺ encouraged independence, enterprise, and fulfilling one’s responsibilities.
To be employed is not ḥarām, but it should not be the default mindset. Islam honours entrepreneurship and self-sufficiency. The key is ambition paired with intention: to support yourself, your family, and others without burdening society.
If you are capable of earning but still ask others for support, you are not fulfilling your obligation, and this can be sinful.
Fulfilling your financial obligations
The Prophet ﷺ taught that earning enough to provide for yourself and your dependents is farḍ (obligatory).
That includes:
- yourself
- your spouse
- your children
- your parents (if they depend on you)
- and any others under your care
It also includes paying off your debts.
Paying debts is not optional. If you borrowed money, even during financial hardship, then you must repay it. If you can work and earn, you must do so.
Some people avoid work, saying “I have no money,” while spending on luxuries, hobbies, or unnecessary purchases. This is wrong and sinful.
مطل الغني ظلم
A wealth person’s delaying repayment of a debt is a form of oppression
Sahih al-Bukhari
I knew someone who was in debt, yet spent freely, taking golf trips (which are very expensive), remarrying, travelling for his honeymoon, and enjoying a lavish lifestyle. Meanwhile, he ignored his creditors.
If you have money, but fail to repay your debts, you are sinful.
This is a betrayal of those who helped you in your time of need.
The Prophet ﷺ once refused to pray the janāzah over a man who had died without repaying his debts. He asked the companions:
“Has he left any unpaid debt?”
They replied, “Yes.”
He said:
“Then pray over your companion.”
He did not declare him a disbeliever, but wanted to send a powerful message to the community: neglecting your financial obligations is a serious matter.
Eventually, a companion offered to repay the debt, and only then did the Prophet ﷺ agree to lead the prayer.
نَفْسُ المُؤْمِنِ مُعَلَّقَةٌ بِدَيْنِهِ حَتَّى يُقْضَى عَنْهُ
“The soul of the believer remains suspended because of his debt until it is paid off.”
Sunan al-Tirmidhī
Debts owed to banks or individuals
Some argue, “But my debt is large, a mortgage or housing loan of £200,000 or £300,000. I can’t repay that all at once.”
That’s fine, because your contractual obligation is to pay it in instalments, not all at once. So long as you pay the agreed monthly amount, you are fulfilling your duty.
But for personal debts, to friends, neighbours, or family, repayment is often not contractual, but moral. You must not delay. You can’t say: “I don’t feel like it,” or “I’m not ready.” If you have the money, repay the debt.
Spending:
- Earning through ḥalāl means to support yourself and others is an obligation.
- Repaying debts is also an obligation — and delaying it unnecessarily is sinful.
- Islam promotes self-sufficiency and entrepreneurship — not dependency.
- The Prophet ﷺ set up systems and gave real-life examples for economic empowerment.
- If you misuse your wealth while neglecting your obligations, you are accountable before Allah.
وَأَوْفُوا بِالْعَهْدِ ۖ إِنَّ الْعَهْدَ كَانَ مَسْئُولًا
“And fulfil [every] commitment. Indeed, the commitment is ever [that about which one will be] questioned.”
Surah al-Isrā’ (17:34)
1. Earning as an obligation
The Prophet ﷺ said that seeking a ḥalāl income is obligatory to the extent that a person becomes self-sufficient, meaning, they don’t need to depend on others. This includes covering:
- food and drink
- clothing
- rent
- bills
- transport
- other essential living costs
Going on holiday, for instance, is not a ḥājah (need), it’s a luxury. A need is something you cannot live without. This is very close to the definition of ḍarūrah (necessity).
So, we have:
- Ḍarūrah (necessity): what you must have to stay alive or avoid serious harm
- Ḥājah (need): what you require for stable living
- Kāmilāt (luxuries): what you can live without
The obligation applies to the first two levels. Failing to earn enough to meet your obligations, or to repay debt, makes one sinful.
يَـٰبَنِىٓ ءَادَمَ خُذُواْ زِينَتَكُمۡ عِندَ كُلِّ مَسۡجِدٍ۬ وَڪُلُواْ وَٱشۡرَبُواْ وَلَا تُسۡرِفُوٓاْۚ إِنَّهُ ۥ لَا يُحِبُّ ٱلۡمُسۡرِفِينَ
O Children of Adam! Don your adornment at every place of worship, and eat and drink, but do not be excessive; He truly does not love those who are excessive. (7:31)
وَٱلَّذِينَ هُمۡ لِأَمَـٰنَـٰتِهِمۡ وَعَهۡدِهِمۡ رَٲعُونَ
and who are faithful to their trusts and to their pledges. (23:8 / 70:32)
2. Earning beyond needs (recommended)
Imām Muhammad ibn al-Ḥasan then said it is recommended to earn beyond your needs. Why?
To help others, especially the poor and your relatives.
الصَّدَقَةُ عَلَى الْمِسْكِينِ صَدَقَةٌ، وَعَلَى ذِي الرَّحِمِ اثْنَتَانِ: صَدَقَةٌ وَصِلَةٌ
“Charity to a poor person is charity, and charity to a relative is both charity and maintaining family ties.”
Sunan al-Tirmidhī
So giving £1 to a stranger earns you the reward of charity. But giving that same £1 to a poor relative earns you two rewards:
- Charity
- Maintaining family ties
This is why Islam encourages looking after family, especially if they are in financial hardship. Supporting them is both virtuous and rewarded doubly.
So it is recommended to work beyond what you need, if your intention is to help others or support family. That additional work is not counted as wasted time in the sight of Allah, rather, it is recorded as an act of worship, because of your intention.
3. Permissible earnings (for luxury)
The third category is earning what is mubāḥ, permissible, meaning it is neither an obligation nor recommended. This is related to luxuries.
For example, going on holiday. Do you need a break? Yes. Is it a basic need? No. But having a rest, a change of scenery, or time to refresh your mind is permissible.
Another example is upgrading your car. If your current car is working fine and meets your needs, then upgrading is a luxury. Are you allowed to earn more to buy a better car? Yes, as long as it’s used in a ḥalāl way.
The luxury itself isn’t the problem. What matters is how you use it.
So if you:
- go on a ḥalāl holiday, fine.
- drive a nicer car for a ḥalāl purpose, fine.
- use either for ḥarām, then it becomes impermissible.
The careful distinction of scholars
You can see how careful the scholars were in making these distinctions. They looked not just at what we earn, but why we earn it, and how we use it.
What they emphasised was:
- your intention
- your usage
- your accountability
This clarity helps us remain balanced, not becoming slaves to wealth, nor careless with our obligations.
إِنَّمَا الْأَعْمَالُ بِالنِّيَّاتِ
“Actions are judged only by intentions.”
Sahih al-Bukhari
Beyond the outer actions, the importance of intention
When forming a blueprint for how we earn and spend, it’s not just about rules and external actions, intention is central.
If your intention behind earning is to support your parents, it is highly rewarding. If your intention is to buy a new car, that’s fine, it falls within what is permissible. But if your intention is to spend on sin, then even the earning becomes ḥarām.
And if the source of the income is ḥarām, such as bribery or deceit, then even fulfilling your basic needs does not justify it. You cannot say, “I had no other option.” That is not an acceptable excuse in Islam.
وَمَن يَتَّقِ اللَّهَ يَجْعَل لَّهُ مَخْرَجًا، وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ
“And whoever is mindful of Allah, He will make a way out for him, and provide for him from where he does not expect.”
Surah at-Ṭalāq (65:2–3)
So stick to the ḥalal, and Allah will ensure you get what has already been written for you. You’ll either take your provision through ḥalal means if you are patient, or through ḥaram means if you are hasty, but the total amount is the same.
Weighing permissible luxuries
Now, let’s talk about working extra hours to earn for permissible luxuries. This falls into the mubāḥ category. You must ask yourself: is it worth it?
Maybe you worked two or three extra months just to afford a two-day holiday. Was it worth the exhaustion? Did it affect your ṣalāh? Did you miss prayers due to fatigue? If so, you need to reassess your priorities.
The action is permissible, yes, but you must judge the impact it has on your religious obligations. The time and energy you spend should not compromise your duties to Allah ﷻ.
Sometimes, you can fulfil your need for relaxation without spending excessively, with local outings, simpler breaks, or creative, affordable alternatives. Luxury is not inherently bad, but it must not distract you from your higher purpose.
4: Disliked earnings (makrūh)
Imām Muhammad al-Ḥasan also included a fourth category: makrūh, disliked earnings.
This refers to those who work endless hours, 7 days a week, 10 hours a day, not out of need, nor to support others, but simply to accumulate wealth. Why? To boast. To prove their status. To say: “I am better than them.”
This is where intention becomes corrupt. Even if the income is from ḥalāl means, the motivation behind it makes it makrūh.
إِنَّمَا الْأَعْمَالُ بِالنِّيَّاتِ
“Actions are judged only by intentions.”
Sahih al-Bukhari
If your intention is arrogance, pride, or rivalry, to show off or compete, then your entire pursuit becomes blameworthy, even if technically permissible. That arrogance can lead to major sin.
وَلَا تَمْشِ فِي الْأَرْضِ مَرَحًا ۖ إِنَّكَ لَن تَخْرِقَ الْأَرْضَ وَلَن تَبْلُغَ الْجِبَالَ طُولًا
“And do not walk upon the earth arrogantly. Indeed, you will never tear the earth [apart], and you will never reach the mountains in height.”
Surah al-Isrā’ (17:37)
You may find two people doing the exact same thing:
- Working long hours
- Seven days a week
- Sacrificing rest and energy
But one is doing it to show off, the other to support relatives in crisis.
The first is makrūh, or even sinful, if the arrogance is dominant.
The second is recommended (mustaḥabb), with reward multiplied by intention.
So, the outcome depends on two things:
- The intention behind the earning
- The means by which the money is earned
Summary of the four (or five) categories of earning
According to Imām Muhammad ibn al-Ḥasan, earnings fall into these categories:
- Obligatory (farḍ): To provide for yourself and your dependents, and to repay debts.
- Recommended (mustaḥabb): Earning beyond needs to help others, especially family in difficulty.
- Permissible (mubāḥ): Earning for luxuries, like holidays or upgrading your car, if used in ḥalāl ways.
- Disliked (makrūh): Earning purely for pride, boasting, or rivalry, even from ḥalāl sources.
- (Optional addition) Prohibited (ḥarām): Earning through impermissible means (e.g. bribery, riba, theft, deception), regardless of the intention.
Dealing with doubtful earnings (shubuhāt)
When it comes to doubtful earnings, where you’re unsure whether the money is 100% ḥalāl, the guidance is clear: stay away from it.
الحلال بَيِّنٌ والحرام بَيِّنٌ، وبينهما أمور مشتبهات لا يعلمهن كثير من الناس، فمن اتقى الشبهات فقد استبرأ لدينه وعرضه
“The lawful is clear and the unlawful is clear, and between them are doubtful matters that many people do not know. So whoever avoids the doubtful matters has protected his religion and honour.”
Sahih al-Bukhārī and Muslim
So if you come across something doubtful, don’t rush. Take your time. Investigate. Ask:
- Where is this money coming from?
- What are the mechanisms behind the transaction?
- What contracts are involved?
- Is any part of it ḥarām?
If you still feel unsure, seek the advice of someone trustworthy in their knowledge and religion. Sometimes, through discussion and questioning, the issue becomes clearer, and often, what is considered “doubtful” turns out to be closer to ḥarām than ḥalāl.
Some scenarios may have both ḥalāl and ḥarām elements, making it hard to separate the two. That “contamination” is a risk to your spiritual state and reputation. Avoid it, and trust that Allah will provide you with something better, and He often does.
وَمَن يَتَّقِ اللَّهَ يَجْعَل لَّهُ مَخْرَجًا، وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ
“And whoever fears Allah, He will make a way out for him and provide for him from where he does not expect.”
Surah at-Ṭalāq (65:2–3)
So yes, it might look like a “great opportunity” on the outside, but income and success are not just about numbers. It’s about source and intention. Don’t be fooled by big numbers; ask what’s behind them.
Intention matters even with permissible earnings
Shayṭān will often whisper and tempt you, saying things like, “You can use this money for good,” or “Think how much charity you could give.” But the money is tainted, and the good outcomes do not justify the bad means.
If your heart feels something is off, don’t ignore it. The believer’s heart is often the first alarm.
استفت قلبك وإن أفتاك الناس وأفتوك
“Seek a verdict from your heart, even if others give you fatwas again and again.”
Musnad Aḥmad
So when in doubt, stop and ask:
- Allah, to guide you to what is ḥalāl
- A person of knowledge, for clarity
Make duʿāʾ:
“O Allah, if this is good for me in my dīn, my livelihood, and my final outcome, then facilitate it. And if not, then turn it away from me and turn me away from it.”
Intention and reward
Let’s return to the topic of intention and reward. Suppose you give £5 to someone, but not with the intention of charity, just because you felt pressured in public and didn’t want to appear rude. That same £5 has no reward.
But if you gave the £5 intending to help a needy person, then it becomes charity and is rewarded.
And if you gave it with the intention of showing off, then the act becomes sinful. So yes, the intention affects the reward (or punishment), and not necessarily how you acquire the money, as you may still earn it in a ḥalāl way. But ultimately, both how you earn it, and why, determine whether it is a source of blessing or a source of regret.
A good intention helps in earning ḥalāl
Having a good intention when setting out to earn is not just spiritually beneficial, it can affect the outcome. If you intend to:
- earn ḥalāl
- support your family
- repay debts
- assist your parents, children, or relatives
The intention aligns with your purpose as a believer. That intention itself can make the means mubārak (blessed), and the income can be recorded as an act of ʿibādah (worship).
To summarise:
- Avoid doubtful income. If in doubt, ask and research.
- Rely on trusted scholars for clarity.
- Don’t be rushed by opportunity or tempted by Shayṭān.
- Make duʿāʾ to stay in the ḥalāl.
- Be conscious of your intention, it can make the same act either rewarded or sinful.
- Earning with the right intention becomes an act of worship.
اللَّهُمَّ اكْفِنِي بِحَلَالِكَ عَنْ حَرَامِكَ، وَأَغْنِنِي بِفَضْلِكَ عَمَّنْ سِوَاكَ
“O Allah, suffice me with what You have made lawful against what You have made unlawful, and make me independent of all others besides You by Your bounty.”
Sunan al-Tirmidhī
We still have more to explore, in shā’ Allāh. In the coming sessions, we will continue looking at ḥalāl earnings, exploring different scenarios, examples, and rulings, including perspectives from Imām al-Ghazālī, which I will summarise.
Cryptocurrency and Bitcoin
- Scholars have three main views:
- Haram: Too volatile, likened to gambling.
- Halal: Acceptable if widely accepted as a currency.
- Undecided: Too new, decentralised, unregulated.
- The speaker’s personal view: Bitcoin is halal if the person is educated and understands its mechanisms. Otherwise, it’s risky and potentially financially damaging.
- Not all cryptocurrencies are the same. Bitcoin stands apart due to its decentralised and fixed supply model.
Interest on Bank Accounts
- Receiving interest without intending it does not contaminate the rest of your money.
- The interest should be disposed of (e.g., donated without expectation of reward).
- Better to move funds into halal investments to avoid interest altogether.
Halal Investment Options
- There are now several Islamic banks offering housing finance in the UK:
- Gatehouse Bank
- Al Rayan Bank
- Al Hilal Bank
- Nomo Bank (new)
- QIB (UK)
Intention and Reward
- Intention transforms the value of an act:
- Giving charity to show off makes it sinful.
- Giving with sincerity brings reward.
- Earning with the intention to provide and support brings reward.
- You should never regret helping someone even if they wrong you later. You helped them for Allah — that reward is secured.
Mortgage and Property
- Use halal Islamic mortgage options where available.
- If you genuinely cannot afford them and exhaust all halal options, discuss with a scholar.
- Having a mortgage for your own home may be excusable under necessity in some views. Mortgages for investment (second or third homes) are not permissible.
Delivered to the Convert Club by Shaykh Haytham Tamim on 7th May