Do not have money lying idle in a current bank account when it could be earning you interest daily in an Money Market Funds.
My name is Laura, 23, single and just from campus. As I await my graduation, I've gotten a job that pays me a net of Sh20,000 a month. This is very little, but it's something. I have to practice under an expert for at least two years for me to sit for the board exams and get licensed.
I would love to move out of home (considering that transport costs to work will be Sh12,000 a month) and also dependency. The office is in a rich suburb area in Nairobi, and it's a battle between very high rent and transport costs. I need help in how I can budget that Sh20,000 and invest, plus save some for soft life and travel. Is moving in with a boyfriend a solid plan?
Gertrude Njeri is an accountant, personal finance and investment consultant
Congratulations on landing your first job! At 23, fresh out of campus and already earning something in your field? That’s no small feat. It might feel like Sh20,000 is too little, but you're off to a solid start, and this is the foundation you’ll build the rest of your financial journey on.
Spending Sh12,000 on transport is a lot. It leaves you with only Sh8,000 to survive on. Look for a small, affordable place near work. There are places like Lower Kabete, Mountain View, and Kangemi which have bedsitters or single rooms going for Sh5,000–7,000.
This rental house may not be fancy, but it will give you a shorter commute, more time and energy, as well as a bit of independence. From this, your housing and transport budget will be around Sh8,000, with at least Sh5,000 going to rent and Sh3,000 going to transport.
Once you settle your rent and transport to work, you will remain with Sh12,000. Make good use of budgeting for food and groceries by buying things like cereals in bulk and storing them for the month. You can buy them at cheap stores in Nyamakima. Also build a good relationship with your local mama mbogas for discounts, cheap groceries and market deals.
If your parents are upcountry, they may be willing to support you by sending you produce and cereals which are either cheaply affordable upcountry or readily available at home if they have a small farm. You don’t need official parcel services to receive such support as matatus offer such deliveries from upcountry. Don’t be shy to ask for such support as it will cut down your groceries budget as well as give you healthy produce for your meals.
Side hustles are no longer optional. The Sh20,000 salary is fixed but your skills, time, and creativity are not. You need to be creative. This could be through content creation, online gigs (like transcription, writing, tutoring), baking, or weekend jobs. For example, you work eight to five, you have a couple of extra hours with which you could roll up your sleeves and do a mama mboga hustle in the evening rush hours in your area.
This is a hustle that will not consume a lot of capital, and which you could scale up into vegetable deliveries for your colleagues at work. Even if this hustle will give you Sh300 per day, that’s an extra Sh9,000 per month which will take your monthly earnings to close to Sh30,000.
Right now, the best thing you can invest in is you. That means learning new skills, networking with people in your industry, attending free or affordable events or workshops and saving for a short course that boosts your career. You can start building an emergency fund using a money market fund. Money market funds are now available right on your mobile phone with compounded interests of seven and above per cent and limitless, free withdrawals and deposits between the MMF and your M-Pesa. Do not have money lying idle in a current bank account when it could be earning you interest daily in an MMF. Even Sh500 per week is a good start.
You mentioned wanting to save for travel and a bit of lifestyle freedom, and I love that. A budget that only focuses on survival is boring and unsustainable. So give yourself a “joy budget”, even if it will be for Sh1,000–Sh1,500 a month. It could be for a café date, self-care, or a solo adventure. You’re young, enjoy it, just not at the cost of your peace. At your age, temptation and peer pressure may be high, but do not succumb to the pressure of clubbing and similar lifestyle in hopes of landing a rich catch. Do not overindulge in a lifestyle that will compromise your medium to long term goals.
Do not move in with your boyfriend. There is a very high risk that you will be taken advantage of, or even abused. Right now, you don’t have the financial muscle to walk away if things go wrong. Stabilise first. Having your own money, no matter how little, gives you power over potential abuse. Build your space. Your money. Your safety net. Then you can love freely, without fear or dependency.
Join SHIF if your employer hasn’t enrolled you. It costs Sh500 per month. Health surprises can be very expensive and it is better to have some cushion. Budget for small digital costs, like Wi-Fi, airtime, or phone maintenance. Your phone is your hustle machine. Try free courses or short-term training in your field. You want to level up fast so you can sit for the board exams and double that salary. Don’t forget to rest. Free things like journaling, walking, and calling a friend can do wonders for your mental health. All the best.
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