By employing a phased strategy, you can effectively upgrade your mud house into a structurally sound semi-permanent home.
I work as a fundi in construction and earn Sh1,200 a day, but I struggle to manage my money. I’ve damaged my reputation by borrowing from colleagues and friends and then failing to pay them back.
My wife often meets me at the work-site after a long day to ask for money for groceries. Because I’m usually broke, she suspects I’m spending on other women, but most of my money goes toward repaying debts. I admit I do drink and bet on football, but I don’t think I spend too much on that.
I’m tired of the embarrassment and want to change my situation. I’ve thought about joining a Sacco but worry about losing my savings if I leave, as I’ve heard happens to some people. I have one child who will be entering senior school in two years, and I want to be financially prepared.
We don’t pay rent since we live in a small mud house on half an acre I inherited from my late father. My dream is to build a decent home for my family. It’s painful to build luxurious houses for others while my own family lives in a mud house. Please, I need help. – Paul
Dominic Karanja, a financial planning and investments consultant.
Your current earnings amount to Sh1,200 per day, translating to Sh6,000 weekly and approximately Sh24,000–Sh26,000 monthly, dependent on working days.
The primary concern is not the income level, but rather the frequency of daily payments, which often leads to rapid expenditure. Managing daily income requires consistent financial discipline. The fundamental issue arises when funds are depleted before they can be allocated effectively.
It is essential to promptly assess your spending patterns and identify significant areas of leakage. For the next two weeks, diligently record every expenditure, regardless of the amount, using either a notebook or the notes application on a basic feature phone.
The first and most crucial step is to immediately stop losing money and begin restoring your reputation by being completely honest with your wife. Sit down together, share this plan, and admit that the money has been going toward debts and gambling, not other women.
Afterwards, create a clear and comprehensive list of every debt you owe, from small payments to larger obligations, so the problem feels more manageable. With this list, approach each creditor personally, apologise sincerely without making excuses, and propose a realistic daily repayment plan to show your commitment to change and to start repairing your reputation.
To effectively transform your financial habits, it is recommended to implement the "Pay Yourself First" strategy as soon as you receive your Sh1,200 wage. This involves promptly allocating the funds into four specific categories: Sh480 (40 per cent) for your spouse to address family needs and future educational expenses, Sh360 (30 per cent) toward structured debt repayment, Sh240 (20 percent) as dedicated savings for a future home, and Sh120 (10 percent) for personal daily expenses. Adhering to this allocation not only limits discretionary spending but also encourages healthier financial behaviours by reducing expenditures on non-essential activities.
By progressively minimising such expenditures and redirecting those resources toward debt reduction or savings, you are likely to experience greater long-term financial satisfaction.
Restoring trust within a marriage is achieved not through verbal assurances, but through sustained, demonstrable actions that reflect genuine change. Regularly transferring a set amount of money to your spouse, reducing alcohol consumption, resolving minor debts that may cause discomfort, and maintaining a disciplined savings habit can collectively help re-establish financial stability. As these efforts reduce financial uncertainty, mistrust is likely to diminish, thereby fostering renewed harmony and affection within the household.
To boost your income as a fundi, focus on specialising in a high-demand skill like tiling, gypsum installation, painting, welding, cabro work, or roofing, which pay much more than general labour. You can learn on-site from experienced colleagues without formal schooling. Dedicating time to mastering one area can lead to higher pay, steadier work, and improved financial stability for your family.
If you want to secure your future by building on your own land, it is important to move past any fears about Saccos. Registered and regulated Saccos are generally safe and can be very helpful in your situation: they encourage regular saving by collecting money up front, prevent impulsive spending by limiting access, grow your savings with dividends, and eventually offer access to large, low-interest loans ideal for building your home.
To get started, join a reputable Sacco and commit to saving Sh240 every day. In two years, you will have over Sh120,000. More importantly, after a year of steady deposits, you will qualify for a housing loan worth three to four times your savings, giving you the capital to buy materials and begin construction on your property.
Your child will join senior school in two years, and preparing now will prevent financial stress later. By saving just Sh2,000 per month, you can accumulate Sh48,000 in that period, and this is easily achievable through small, consistent steps. Saving Sh100 daily already gives you about Sh3,000 per month, and reducing betting or drinking can free an additional Sh1,500–Sh3,000 monthly. With these simple adjustments, you can comfortably build the school fees fund your child will need.
Since you already possess land, which constitutes the primary asset, you can embark on constructing your ideal home gradually and cost-effectively, thereby minimising financial strain. Consider segmenting the project into practical phases. Begin with Phase 1, during which you will level the ground and systematically acquire materials such as ballast, sand, and stones.
Progress to Phase 2 with a budget to facilitate foundation excavation and the construction of the ground ring beam. Subsequently, proceed to Phase 3 by adding rooms incrementally as funds become available. By employing this phased strategy, you can effectively upgrade your mud house into a structurally sound semi-permanent home within three to five years.
As a skilled fundi with expertise, land, and family, all you need is financial discipline. Use your current situation to motivate regular Sacco deposits; after a year, your savings will bring lasting pride, unlike fleeting pleasures from drinking or betting.
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.
