If you are earning Ksh40,000 in Nairobi,here is how to manage the salary:
Rent—Ksh 6,000
Transport—Ksh 5,000
Food and shopping—Ksh 12,000
Electricity+Water—Ksh 1,500
Other expenses—Ksh 5,000
Total=Ksh29,500
The total expenses can rise to Ksh 30,000 if your rent is increased to Ksh10,000.
Investments
Invest in a Sacco or money market fund.
Sacco—Ksh 3,000
Money market Fund—Ksh 5,000
You will remain with Ksh3,000 to Ksh5,000 to spend on entertainment and miscellaneous items.
When earning such low salaries, avoid things like alcohol, gambling and multiple partners. You should also avoid owning a car. When you own a car, it comes with insurance cover, expenses for car wash and repairs. Fuel will also double or triple your expenses.
