Money saved used, then re-earned through the year and the implications for zakat

Question

I understand how to calculate Zakat, but what I'm unclear on what is considered acclimated wealth.

Let's assume, for the sake of simplifying it, that I owe zakat, and I pay what is due. At the end, I have $100 in savings.

In the following months, I spend $75, leaving me with a balance of $25 in my bank. But throughout the year, I work and earn $100 more.

When the year has passed from when I last gave Zakat, my balance is now $125. But of the original savings I had, only $25 of that remained, and the rest was earned.

So in terms of Zakat, what number would I use for my accumulated wealth? I know it's not $125, because that amount was not held for a year.

The question is if it's $100, because that's the amount I had last year when I paid Zakat, or $25, because that's what's left of the original $100 I had.

Thank you.

Answer 1

I'm not sure whether I understood your example or not so let me give you an example to explain how and when Zakat should be paid:

• First for zakat your wealth must reach the nisaab (for example a minimum amount of money)
• Secondly this money must be in your possession for a whole lunar year (hawl)

For simplification lets assume that the nisaab actually is $ 150 and doesn't change (actually the gold and silver prizes change so you need to check the actual prizes).
Further we need to assume that you don't need the money in hands to support your family (feeding etc.) so it is clearly money you have saved and don't need to use actually.

You've paid your zakat and had $ 100 left on the 1st Muharram (first day of the first month of the hijri calendar).
One month later you've had some savings and your account reached $ 140 (we now have the first of Safar the second month in the hijri calendar).
On the next month you had to spend some money and had only $ 50 in your account (we have the first of Rabi' al-Awwal).
One month later you had savings and reached $ 100 (1st of Rabi' at-Thani).
Again a month later you had savings and reached $ 160 (1st of Jummada al-Uwla).

Now if you had savings in the next 12 months or never had spent such a big amount to fall below $ 150 your money is zakatable on the 1st of Jummada al-Uwla of the next year. Else you need to wait until you may keep it at this level this is the majority view.

For example lets assume you had to spend a large amount during Jumammada a-Thaniya and only reached the nissab again in Sha'aban (two months later, reaching $ 175) and could keep this level -without going below the nissab for the next twelve lunar months in that case the majority view says you'll have to pay zakat on the amount saved in Sha'aban ($ 175) in the month of Sha'aban of the next year (which would be $ 4.375).
According the other view -in the same situation- you may need to pay the zakat on the amount saved in Jummadah al-Uwla ($ 160) one hawl later meaning in Jummada al-Uwala of the following year (which would be $ 4).