How To Budget A 40 000 Salary In Kenya
Kenya’s economy is at an all-time low, with high living standards, high costs of living, and absurdly expensive pricing for everything, and it’s gotten to a point where a 40k income can only help you survive the economic downturn.
Having a 40 000 salary may appear small but you are much better than most jobless people. However, budgeting with a 40k salary can be hard at this time when the cost of living is high.
Nevertheless, I have a good plan to help you be in a better position to budget your salary and live well.
Tips To Budget A 40 000 Salary In Kenya
These are the tips on how to manage a 40k salary in Kenya:
1. Accommodation
It makes no sense to earn 40k and pay 20k in rent. Nevertheless, this is where the majority of people’s incomes go, which is quite dumb.
Rent a home in a low-cost neighborhood near your workplace.
Maybe places such as Pangani, Donholm, Pipeline, Dandora, Utawala, Kahawa West, etc somewhere where a good bedsitter or a one-bedroom can cost about 10K.
2. Transport Cost
Most people use public transport to go to work and it is not free. Setting aside Ksh 150 which is about Ksh 5000 for transport can be a good start.
If you used more than Ksh 200 on fare a day then rethink. You better shift and rent someplace near in order to get more value for your money.
3. Shopping
A house shopping of about 5k where 3k is for non-perishable such as tissue and cereals and 2k for perishable goods such as milk, and vegetables for the month.
Bulk shopping is the way to go. For instance, some wholesalers sell a 20-pack of tissue for Ksh 200 which can last you the whole month.
On the other hand, a 4-pack of tissue is a supermarket can cost Ksh 80 to Ksh 100. Now, do the math and see how much you can save.
4. Phone Bills
We all have phones and the cost of making calls or buying data bundles cannot be underestimated when planning a budget.
As a result, choosing cheaper data bundle options and call rate options can be a great way to save.
For instance, both Airtel and Telecom bundles are cheaper than Safaricom bundles only that the network may not be good in some places.
Nevertheless, it is worth trying.
5. Savings And Investment
If you stay focused, and find a saving plan that works for you whether through Sacco, Chama, or banks among others, you can go far toward achieving your ultimate financial goals.
You have to treat yourself. Set aside 11k for this. The cost includes personal maintenance such as a salon, clothes upgrade, minor medical expenses, and entertainment.