I have secured a receptionist job in Nairobi. I will be earning Sh22,000 per month before taxes. At the moment, I am staying in a house where I pay Sh3,500 per month, but I am not very comfortable there. I am planning to move to a better house next month that costs Sh6,000 monthly.
I am a mother to a one-year-old daughter who is currently staying at home, but I am planning to bring her to Nairobi once I am more stable financially. I also have financial obligations, including a loan of Sh13,000 from Zenka and Helb. Additionally, I had a chicken project back home, though I was forced to sell some of the chickens to support myself as I transitioned into this new job. I am now planning to renovate the chicken coop and rebuild the project so I can grow it again.
Given my situation, I would really appreciate your advice on how to budget my salary well, manage my debts, and gradually grow financially.
Muthoni Njakwe is an accountant and the author of the personal finance book 'Her Shilling, Her Power: A Woman’s Guide to Financial Freedom'.
First of all, congratulations on your new job. Getting a job is a big step, especially when you are starting a new chapter and have a child to take care of.
From what you have shared, you have several things you want to do. You want to move into a better house, clear your debts, bring your daughter to Nairobi and rebuild your chicken project. All these are good goals. However, you don't have to do everything at once.
The first thing I would advise you to do is to create stability before taking on more expenses. Once you receive your salary, first find out exactly how much you will take home after deductions. That is the amount you should use when making your budget.
When your salary comes in, give every shilling a job. Start with your basic needs: rent, food, transport, airtime and other important expenses. Then put aside something for your debt and savings.
Your planned rent of Sh6,000 is reasonable, but make sure you also budget for the cost of moving. You may need to pay a deposit, transport your belongings and buy a few things for the new house. Make sure the new house gives you comfort without putting too much pressure on your salary.
The Zenka loan should be one of your priorities. Find out exactly how much you owe and how much you need to pay each month to clear it. Then make sure you stick to that plan. I would also advise you not to take another digital loan to pay this one or to meet your normal expenses.
That can easily become a cycle that is difficult to get out of. For HELB, find out your current balance and what you are expected to pay so that you can also plan for it. The aim is to gradually clear your debts so that more of your income can go towards building your future.
Start saving, even if it is little
I know you have many responsibilities, but I would still like you to start saving something every month. It could be Sh500, Sh1,000 or whatever you can comfortably manage. Don't worry about the amount at first. The important thing is to develop the habit. Going forward, I want you to build a small financial cushion that can protect you when such situations arise.
I like the fact that you are thinking about your chicken project again. You don't have to start with a large number of chickens. First, renovate the coop and make it safe and suitable for the chickens. Do the necessary repairs without spending too much money. Then start with a number of chickens that you can comfortably manage.
Most importantly, keep records. Know how much you spend on chicks, feed, medicine and other costs. Also record how much you make when you sell them. This will help you know whether the project is actually making money.
I know you want your daughter with you, and that is understandable. However, I would advise you to first settle into your job and your new home. Give yourself a few months to understand your expenses and see how much you are able to save.
Before bringing her, think about where she will stay during the day while you are at work, how much childcare will cost and the additional expenses for food, clothing and healthcare.
This doesn't mean you are delaying your plans. You are simply preparing properly. When she eventually comes to Nairobi, you want to be in a position where you can take care of her without putting yourself under too much pressure.
Sandra, you have many things you want to achieve, and that is a good thing. But you don't have to move houses, clear all your debts, rebuild the chicken project, save money and bring your daughter to Nairobi all in the same month. Take it one step at a time. For now, I would encourage you to first settle into your new job and understand where your salary is going.
From there, focus on clearing the Zenka loan while also putting aside a small amount every month for emergencies. Once you have created some stability, you can gradually renovate and rebuild your chicken project and prepare financially for your daughter to join you in Nairobi.
At the same time, keep looking for ways to increase your income as you gain experience in your new job. You don't have to do everything at once. What matters is that you keep moving forward, one step at a time.
Sandra, you are not starting from nothing. Your focus for the next 6–12 months should be stability. Don't be in a hurry to look successful. Be in a hurry to become financially stable.
Manage what you have well, avoid unnecessary debt, save consistently and grow your chicken project slowly. Small steps, taken consistently, can completely change your financial situation.
