With discipline and a clear plan, you can attain financial independence.
My name is Sofia, a mum of two. I work on an annual contract basis, renewable every year. Over the last two years, my pay has reduced from Sh35,000 in 2023 to Sh29,000 in 2024 and now Sh25,000. My employer says these cuts are due to changes in business performance.
My expenses at home are minimal because my husband handles everything. I only pay our house-help Sh10,000 per month. Personally, my expenses are on transport, salon, clothes, tithe, support for my mum in the village, merry-go-round (Sh4,000), and bank savings Sh2,000. I am expecting to eat the merry-go-round cash in February 2026. We are 20 members and I expect to pocket Sh80,000.
I currently have Sh150,000 saved at the bank. I would like to start a side hustle but I don't know which one, or how to go about it. I would also like to acquire some assets under my name and privately away from my husband, like a plot. How do I do this with my reduced salary?
Muthoni Njakwe is an accountant and the author of personal finance book 'Her Shilling, Her Power: A Woman’s Guide to Financial Freedom'
First, analyse your current financial situation. Start by clearly understanding your income, expenses, and savings. Over the last two years, your income has been reduced, which signals possible uncertainty ahead. You must therefore manage every shilling carefully and prioritise building savings and alternative income. You already have Sh150,000 in savings and expect to receive Sh80,000 from your merry-go-round, this gives you a total of Sh230,000. Allocate this money strategically. It will protect you from future income uncertainty and provide capital for your goals.
The second step is to set financial priorities. Focus on three key priorities. Emergency fund. Set aside Sh60,000 - Sh80,000 to cover three to six months of personal expenses. This will ensure stability even if your contract is not renewed. Put this money in a money market fund where it will be protected from inflation while generating some compounded daily interest.
Side hustle capital. Allocate Sh20,000 - Sh40,000 to start a manageable, low-capital side hustle that can grow over time and reduce reliance on your salary.
Long-term savings: Save the remaining balance in a high-interest account or a secure investment. Keep these funds separate from daily expenses. This will ensure your emergency fund is protected, your side hustle has growth capital, and your long-term savings steadily accumulate toward assets under your own name.
As a third step, start a side hustle. Choose one that requires low initial capital, fits your schedule, and can grow steadily over time. Pick a hustle that will support you without disrupting your routine in case your contract is renewed. Options include online resale of mitumba clothes or beauty products, home-based food preparation, tutoring, or offering services based on your existing skills.
Start small and focus on one idea at a time. Channel most or all of the early profits back into the business instead of letting them blend into daily expenses. This discipline will help your side hustle to grow, become more profitable, and eventually create a reliable income stream to support your goals.
Once your side hustle is running and your savings are growing, acquire assets under your own name, such as a plot or small investment. Research affordable and legally secure options. Check titles, location, and long-term value carefully. Allocate a portion of your consolidated savings toward a down payment or installment plan, keeping these funds separate from your daily expenses.
Even starting with a small asset is important. It gives you ownership, builds long-term security, and strengthens your financial independence. With consistency and discipline, you can gradually expand your asset portfolio over time.
Financial independence is built through consistency. Review your budget, savings, and side-hustle progress each month to ensure you’re following your priorities. As your side hustle grows, continue reinvesting a portion or all of the profits to help it scale and eventually become a dependable second income stream.
Adjust your budget as your salary changes or your business expands, and keep learning about financial management and investment opportunities that align with your goals. Most importantly, maintain a clear separation between daily spending, your emergency fund, and long-term asset investments. This strategy keeps you in control, builds momentum, and moves you steadily toward full financial independence.
Financial independence doesn’t happen overnight, but with discipline and a clear plan, you can reshape your future. Every shilling you save, every profit you reinvest, and every asset you secure shifts you from uncertainty to confidence. Your income may be unpredictable, but your strategy doesn’t have to be.
Whereas there is a social value for participating in a merry-go-round, this form of saving is not the most ideal as your money doesn’t grow and is instead exposed to inflationary factors. The better alternative is to save through the money market fund or even a Sacco, of which your chama can open an account and be allowed to pool resources together.
Stay consistent, stay intentional, and keep building because the life you want is not a matter of luck, but a result of the choices you make starting now.
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
