How can I budget and survive with my little savings, salary and a newborn in Nairobi?
I am in my mid-20s and employed with a salary of Sh20,000. I am pregnant and expecting a baby in about three months. Once I go on maternity leave, my pay will remain at Sh20,000 for the first three months and be reduced to two-thirds for the next three months.
When I return to work after six months, my full net pay of Sh20,000 will be reinstated. I live in a single room in Kawangware. I have savings of Sh65,000 in the bank. I am hesitant to ask for help from my parents and siblings when I give birth, as I do not want to burden them.
How can I budget and survive with my little savings, salary and a newborn in Nairobi? Is it wise to sue my baby daddy to get additional support instead of burdening my parents with a responsibility that isn't theirs?
Chacha Nyaigoti Bichang’a is a financial coach at Chachanomics Consulting Firm and the author of Mastering Your Money
From now until you deliver a baby in three months, your salary stands at Sh20,000 and you have saved Sh65,000 in the bank for any emergency. The most critical period will be between four to six months when your salary takes a nosedive as your expenses rise tremendously due to the expected baby.
This scenario is likely to deplete your savings and make you financially vulnerable because you do not have any side hustle or reliable sponsor to cushion you.
Work with a crisis budgetary guideline. It is advisable to use the 50/30/20 budgeting guide (whereby 50 per cent or Sh10,000 goes to needs or essentials, 30 per cent or Sh6,000 is channelled to savings and 20 per cent or Sh4,000 is utilised for wants or discretionary expenses), but this is not practicable considering your dire financial situation. Identify the most essential expenses and those of the child.
Break your expenses into your personal living or essential costs (70 per cent or Sh14,000) and baby care needs (30 per cent or 6,000). Allocate 70 per cent (Sh14,000) of your net income to your needs or essentials such as rent at an average of Sh4,000 (20 per cent) which is ideal for a single room in Kawangware which hopefully is not far from your place of work, food Sh5,000 (25 per cent), transport Sh2,000 (10 per cent) utilities Sh1,000 (5 per cent) airtime Sh1,000 (five per cent), and miscellaneous Sh1,000 (five percent). As for your medical cover, you ought to have registered with SHA and your employer definitely remits the requisite statutory contributions via check off.
Considering the baby's expenses, allocate the following amounts: diapers, nappies and wipes Sh2,000, baby's clothes Sh2,000, washing detergents and ointment Sh1,000, other essentials Sh1,000 to Sh3,000.
This totals about Sh8,000, which leaves you with a deficit of Sh2,000 per month that can be offset by using your bank savings as a stop-gap measure. When your salary reduces to Sh13,333, you will have a deficit of about Sh10,000, which will further necessitate dipping into your savings for three months. This scenario is likely to deplete your savings by at least Sh36,000.
This amount does not factor in the one-off expenses upon delivery of a child whereby you will incur an enormous expenditure occasioned by buying new clothes for the new born baby, lesos, baby's bedding and foodstuffs. This is likely to cost you about Sh20,000, which will be obtained from your emergency savings.
Get a relative to assist you in managing the Herculean task of taking care of the baby and other household chores as you recover from postpartum depression. This will equally have some additional financial implications. By the end of the six-month maternity period, you will have exhausted your savings and incurred some debt.
Third, practice some smart saving and budgeting tips. These include: buying foodstuffs and other consumables in bulk, buying second-hand clothes at Gikomba and Eastleigh at least once a month, using reusable cloth nappies during the day while at home and diapers especially at night and/or when travelling to save money.
Breastfeed continuously for six months and resist the temptation of using the baby formula because breastfeeding is far healthier and cost-effective. Organise for baby showers with friends, workmates and relatives which will boost your supplies and reduce some shopping expenses.
After six months, gradually readjust your lifestyle and start replenishing your savings reservoir through meaningful side hustles and cutting down on unnecessary expenses. Engage in a side hustle, probably three months after delivery, once you have settled down and gotten somebody to assist you with domestic chores.
You can venture into some light online gigs in line with your passion or areas of interest, start reselling or selling second-hand (mitumba) baby items which you fetch from Gikomba or Eastleigh. You can put up a grocery stall in your estate or do any legit business that earns you an extra income to meet your rapidly increasing expenses.
Fourth, hold a candid conversation with your parents and siblings. They need to know about your pregnancy and financial situation so that they can give moral and possibly financial support.
Do not shy away from disclosing your current situation, especially in the context of a runaway baby daddy. They will give you the much-needed psycho-social support to handle postpartum frustration. You need adequate prenatal and postnatal care from health providers and your next of kin.
Do not be afraid to ask for help from your parents. In fact, they might embrace you and your newborn.
Fifth, consider having a calm, straightforward conversation with your boyfriend and tell him your needs and expectations.
If this approach does not work, visit the children's office and seek legal advice. The children's office will summon him and have a candid discussion with you two on the need for co-parenting.
Any sane man will heed the advice given and commit to sending you a certain proportion of his income.
You have to be emotionally and financially prepared to cope with the challenge of co-parenting and footing the legal expenses should the matter proceed to court, in which case you may need to have a professional family lawyer to hold your hand.
Overall, you need to be fully prepared financially, emotionally and psychologically for the birth of the baby. Work with the recommended budgeting framework by considering your needs, the baby's requirements and your wants.
Consider cutting down on unnecessary expenses and seek psycho-social support from friends, workmates and parents or relatives to surmount the effects of postpartum depression. I wish you all the best.
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