Dr. Monzer Kahf, a prominent economist and counselor, states the following: “Zakah is due only on savings. Zakah is definitely not required on the amount of income made because this amount is engaged or appropriated to expenses. If savings reach the amount of Nisab (at this time it is equal to approximately US$ 1000, one thousand) then one can begin the Zakah year. Then we look after 354 days (a full lunar year) if we then have an amount equals to Nisab, we are required to pay 2.5% of the balance we have as Zakah. Zakah is due even if this amount is left aside for emergencies, but we should notice that money that is devoted for expenses for the period between the 354th day and the next time we may get income is considered not subject to Zakah because it is already “engaged” for living expenses. The Prophet, peace and blessings be upon him, said that Zakah is only out of richness and considered that if the amount you have on the 354th day is just one penny short of the Nisab (he, peace and blessings be upon him) gave the example of 199 because the Nisab of silver currency is 200 Dirham) you are not required to pay Zakah that year.”