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How to budget Ksh 80,000 salary in Kenya


“I am currently earning a monthly net salary of Ksh 80,000. I live in Nairobi’s Rongai Estate. Over the past 3 years I have been living beyond my means. I spend all the money and by date 15 I have exhausted my salary.I have borrowed from 7 loan Apps and also from friends.I hide a lot and always switch my phone not to get calls from those apps and the people I owe money. I own a car and live in a Ksh 21,000 apartment. I also have 4 girlfriends. I also take one for the road at least once a week.

I have not invested anywhere since I was employed in 2018.I now feel left behind because most of my friends have bought land and others built their own homes. Please help me budget my money so that by age 40 I have something to show the society”


There are a couple of things you should drop from your life. Ksh 80,000 is not a lot of money, if not well budgeted for, you will end up borrowing from all loan Apps without repaying the money. First, stop taking alcohol or drink once a month if it’s a must to drink. You should also sell your car because it’s a liability. That car of yours needs insurance, servicing and replacing of spare parts. It also needs fuel.If possible commute.

I will also advise you to drop most of your girlfriends and remain with 1. Women won’t let you save money.

You should also downgrade from Ksh 21,000 house to Ksh10,000 to Ksh 15,000 house. Since you aren’t married and have no kids I don’t see the reason you should rent a very big house.

With all those adjustments, you should budget your money like this:

Ksh 12,000 rent

Ksh 20,00 food and shopping

Ksh 10,000 transport

Ksh 5,000 miscellaneous expenses

Ksh 5,000 entertainment

Total expenditure=Ksh 52,000

Savings Ksh 28,000

Open an account with a Sacco where you will save Ksh 10,000 every month. The money will yield dividends of 12%-18% per year. You should also save Ksh 10,000 in Money Market Fund. The interest from MMF is 13%-18% per year and it’s calculated daily.If you invest Ksh 120,000 per year on money market fund, you will earn interest of Ksh 15,000 to Ksh 30,000 within that period.

After a couple of years, think of starting a side hustle to supplement your income.

With good financial management, you will own your own business, your own home and investments worth millions in 10 years.Your future will be smooth.

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