How To Budget A 20 000 Salary In Kenya

How To Budget A 20 000 Salary In Kenya

The amount of income determines the kind of lifestyle to live. This article will explain how to survive with a 20000 shillings salary in Kenya.

It is a fact majority of Kenyans don’t earn big salaries, especially those working in the informal sectors. However, there are success stories of people who manage to live within their small salaries comfortably.

Below are some tips on how to survive on a 20000 shillings salary in Kenya.

  • Rent a House in an Affordable Neighborhood

Housing is among the biggest cost elements in Kenya with the majority of people spending most of their income on it. This becomes harder if you are living in the big towns and cities where the cost of housing is higher than in the rural areas.

As per the financial rules, you should not spend more than 30% of your income on housing. With a 20,000 shillings salary, the maximum you can spend on rent is 6,000 shillings.

This guides the kind of areas you should search for a house especially in big cities such as Nairobi. Some of the areas you could settle for with this salary are low-income neighborhoods areas such as Kawangware.

Another option would be to go for house sharing. This requires you to get a roommate to share the housing cost with. Finding a roommate will help you reduce the rent amount since you will cost-share the rent amongst yourselves.

The only challenge with house-sharing is that it takes away privacy and is prone to frequent conflicts.

  • Create a Monthly Shopping list

Shopping is another expense that requires proper planning and control with this salary. You have to incur some periodic expenses purchasing items necessary for survival. These include items such as clothing. Foodstuff and detergents.

Therefore, to avoid spending recklessly, you should come up with a monthly shopping list that helps you manage money better.

With a 20,000 salary, do not go for high-end products as they are more expensive.

You should also consider shopping in more cost-friendly areas such as farmers’ markets for groceries and meat products. These places offer products at a lower price compared to purchasing items in a supermarket.

How much salary is enough in Kenya?

The salary range for people working in Kenya is typically from 28,190 KES (minimum salary) to 118,058 KES (highest average, actual maximum salary is higher). This is the total monthly salary including bonuses. Salaries can vary drastically among different job categories.

What percentage of salary should go to rent in Kenya?

The 30% rule is the standard rule of thumb for determining how much rent you can afford. According to this rule, you should spend 30% of your net monthly income on housing costs. Most economists agree that the 30% rule is a helpful strategy to guide you in allocating funds for different expenses at the household level.