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 in this time where 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
This are the tips on how to manage 40k salary in Kenya:
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.
You end up squandering a lot of money by paying your landlord or landlady, but you don’t get anything in return.
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 that 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 some place near in order to get more value for your money.
Do bulk shopping which sometimes can be bought in wholesale rather than retail and you end up saving some cash.
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 vegetable for the month.
Bulk shopping is the way to go. For instance, some wholesalers’ sale 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 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 cost of making calls or buying data bundles cannot be underestimated when planning a budge.
As a result, choosing cheaper data bundles options and call rates 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
With a salary of 40 000, it is recommended to save 6,000 shillings each month to attain a certain financial goal.
If you stay focused, and find a saving plan that works for you weather through sacco, chama, or banks among others, you can go far towards achieving your ultimate financial goals.
6. Personnal Maintenance And Miscellaneous
You have to treat yourself. Set aside 11k for this. The cost includes personal maintenance such as salon, clothes upgrade, minor medical expenses, and entertainment.
I believe this article has been helpful, good luck.