I am 29 and a mother of one. I live in Eastlands, Nairobi, with my son and I have a permanent and pensionable job earning a Sh43,300 net salary. However, I am poor with money. The money I make only covers basic necessities including rent, water, power, food and clothing. I don’t have black tax since my parents are financially stable and my siblings have better-paying jobs than I do. I wanted to try and save in MMF but I changed my mind after my friend got less than Sh200 per day after saving hundreds of thousands.
I want to try business but I don’t know how to save up capital for it or what type of business I should start. I also want to save and raise money to sue my baby daddy so that I can start getting child support. How do I achieve all this? Edith
I want to try business but I don’t know how to save up capital for it or what type of business I should start.
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Gertrude Njeri is an accountant, personal finance and investment consultant and the founder of Financial Buddy Africa Ltd.
Edith, the most important sentence in your question is not your salary or your business idea. It is this: "I am poor with money."
That level of self-awareness is actually a strength because you cannot solve a problem you are unwilling to admit.
The good news is that I don't think you have an income problem. I think you have a money management problem.
Let's look at your situation. You earn a net salary of Sh43,300 every month. You have a permanent and pensionable job. Your parents are financially independent, your siblings do not rely on you, and you have no black tax. At 29, those are advantages many people would love to have. Yet you say your salary only covers your necessities, and nothing is left over.
That tells me one of two things. Either your expenses have quietly grown to match your income, or you are spending without intentionally directing your money towards specific goals. Before doing anything else, I would challenge you to track every shilling you spend for the next month. Many people are surprised to discover how much disappears into transport, eating out, mobile money charges, online shopping, subscriptions and impulse purchases. You cannot improve what you do not measure.
You also mentioned that you changed your mind about investing in a money market fund because your friend earned less than Sh200 in a day despite saving hundreds of thousands of shillings. This is one of the biggest misconceptions about MMFs.
A money market fund is not designed to make you rich. It is designed to protect your savings, earn a better return than leaving money in a bank account, and give you quick access to your money when you need it.
Think about it this way. If someone has Sh500,000 in a money market fund and earns around Sh200 a day, that is roughly Sh6,000 a month without running a business or taking investment risk. More importantly, the Sh500,000 is still available whenever they need it. The real question is not whether Sh200 a day is exciting. The real question is: where else can you keep your emergency savings, earn a return and still have easy access to your money?
An MMF should not be viewed as your wealth-building investment. It should be viewed as the foundation that gives you financial stability while you pursue bigger goals.
I also noticed that you have three different goals: starting a business, building savings and pursuing child support. They are all important, but trying to tackle all three at once may leave you making little progress on any of them.
Start by putting your goals in order. First, build an emergency fund. Aim to save three to six months of your essential expenses in an MMF. You do not need to start with large amounts. Even setting aside Sh3,000 to Sh5,000 every month, immediately after payday, will help you build the habit
Second, pursue child support. Your child's father has a legal responsibility to contribute to your child's upbringing. Before assuming court is the only option, consider first seeking assistance through the Children's Office or mediation if appropriate. It may resolve the matter more quickly and at a lower cost. If legal action becomes necessary, then proceed knowing you have explored the available options.
Only after you have established a consistent savings habit should you think about starting a business
But don't ask yourself, "What business should I start?" Instead, ask, "Who can I serve?"
One of your biggest advantages is that you already have a stable workplace and interact with colleagues every day. Those colleagues are your first potential customers. Instead of renting a shop immediately, consider starting a small side business selling products that people buy regularly, such as office-friendly lunches, perfumes, handbags, office wear, children's clothes or beauty products. Start by taking orders through WhatsApp and serving people you already know.
Most importantly, do not quit your job to start a business. Let your salary continue paying your bills while the business grows in the background. That removes the pressure of expecting a new business to immediately replace your income.
Your salary should become your investor, while your business becomes your wealth creator. Let your salary build your emergency fund and provide the capital to grow your business steadily, rather than forcing the business to carry all your financial responsibilities from day one.
And finally, remember this: money flows where there is a plan. Right now, your money is reacting to life instead of being directed by you. Once every shilling has a purpose, you will stop wondering where your money went and start seeing it move you closer to the life you want.
If you have any money problems, send us an email at [email protected] and leave your number for contact. Money questions will be answered on this column.
