Many Kenyan employees rely on walking to work, with only a few affording personal vehicles or public transport.
This highlights the challenging economic times, where high deductions such as the housing levy and increased NSSF contributions, along with loan repayments, leave little disposable income.
However, there are ways to make earnings last until the next paycheck.
Your job description and benefits might tempt you to live in an upscale neighborhood, often associated with well-off individuals and premium social amenities.
However, the rent in such areas can be exorbitant, ranging from tens of thousands to six-figure amounts monthly. Additional services like garbage collection and internet may also come at a cost.
Opting for a more budget-friendly residence is not a downgrade but a smart financial decision. Evaluating annual rent expenses may reveal that the amount spent could secure a plot of land elsewhere.
Concerns about security in less costly areas should be assessed on a case-by-case basis rather than dismissed outright.
While buying small quantities, commonly referred to as the “kadogo economy,” seems convenient, it often results in higher long-term costs. For instance, purchasing cooking fat in small sachets may appear affordable, but calculations show that buying in bulk saves money.
The same applies to other household essentials. Bulk purchases reduce overall expenditure, freeing up funds for other needs or savings.
Carrying homemade meals can significantly cut down daily expenses. Eating at food kiosks or hotels varies in price, yet the ingredients used are often the same. For example, a plate of githeri may be relatively cheap at a local food joint but much pricier in an established hotel, with little difference in taste or nutritional value.
Preparing meals at home ensures better quality and hygiene while preventing exposure to questionable cooking practices. Reports suggest some food vendors use additives such as painkillers or soda ash to speed up cooking, which may pose health risks.
Many people subscribe to premium cable TV packages but rarely have time to watch due to work commitments.
If most of your time is spent at work and weekends are dedicated to social activities, consider a lower-tier package or a free-to-air decoder.
Similarly, home internet subscriptions should align with actual usage. If your internet consumption is minimal, opting for an expensive plan may not be cost-effective. Evaluating and adjusting these expenses can contribute to better financial management.
By making these small yet impactful changes, employees can better navigate economic hardships, ensuring their earnings last longer while still meeting essential needs.
