For one month, meticulously record every shilling spent, regardless of the amount.
I’m an administrative assistant and a single mother of two after leaving a toxic marriage. I'm experiencing a devastating financial situation. I earn Sh28,000 net. Sometimes I earn Sh30,000 when I have Overtime. My expenses are as follows: Rent Sh9,000, Token Sh500, Tithe Sh3,000, Fees last month I paid Sh3,000, now I have a balance of Sh3,000, Saving Sacco Sh1,500, Gas refill Sh1,200. Gas Sh2,400. I do shopping, buy clothes, and go to the salon with leftover money.
I have a Sacco loan of Sh35,000 which I borrowed to apply for a passport and to fund my relocation to my current residence. I have Sacco savings of Sh51,000 only. By 15th of every month, I find myself borrowing money from friends or family members. Where I live, bedsitter rent is between Sh9,000 and Sh12,000. A single costs from Sh6,500 to 9,000 but you have to buy water. A single mabati house rent ranges from Sh3,500 to Sh5,000 but the security is not good. I left my marriage four years ago. I don't have any support. I market myself on LinkedIn to build my brand. I want to become a freelancer to earn extra coin but I'm struggling. Please help me. Beatrice
Dominic Karanja is a financial planning and investments consultant
Your fixed monthly obligations total Sh18,200. After accounting for these essential expenses, you retain Sh9,800 for other costs such as food, transportation, clothing, and loan repayments. Such a constrained budget shows the difficulties you are experiencing in maintaining cash flow.
For one month, meticulously record every shilling spent, regardless of the amount. This will enable you to identify exactly how your funds are allocated.
Frequently overlooked expenses may include transport, groceries, airtime, and personal care items. With a thorough understanding of your spending, you will be better equipped to make informed financial decisions.
Your current rent of Sh9,000 represents a considerable portion of your income. Relocating to a less expensive area, or opting for a smaller living space could significantly improve your financial flexibility.
For instance, renting a single room for Sh6,500 to Sh9,000 may result in only marginal savings; however, securing a safer mabati house at between Sh3,500 and Sh5,000, would offer substantial financial relief.
I acknowledge your concerns regarding security, so it is crucial that any relocation is carefully considered . Saving even Sh2,500 per month on rent equates to an additional Sh30,000 annually, which could be allocated toward accelerating your loan repayment or strengthening your emergency fund.
Lowering your monthly Sacco savings from Sh1,500 to Sh500 will release an additional Sh1,000 each month. Maintain the minimum required contribution to retain membership status.
The surplus funds can be allocated toward accelerating repayment of your Sacco loan, thereby expediting debt clearance and reducing overall financial obligations. This adjustment will allow for a disciplined savings practice while prioritising debt elimination.
You have already established a solid foundation by developing your professional brand on LinkedIn. The next step is to leverage your experience as an administrative assistant and apply your transferable skills to freelancing opportunities.
Consider offering services such as virtual assistance, data entry, transcription, social media management, or content writing. Beginning with small, short-term projects will allow you to build both your portfolio and your confidence.
Initially, the focus should be on gaining experience and establishing momentum rather than maximising earnings. Dedicating one or two hours during evenings or weekends can help you establish a modest portfolio, while utilising free online platforms to secure clients.
A reasonable goal would be to earn an additional Sh5,000–Sh10,000 per month within the first six months.
You may wish to temporarily reduce your tithe to Sh1,000–Sh1,500, or stop this expenditure until your finances stabilise. While faith is important, achieving financial stability for yourself and your dependents should take precedence.
Allocating part of or all of your tithe to savings or loan repayment, even temporarily, may positively impact your financial situation. Additionally, assess other expenses such as salon visits or clothing purchases.
While these contribute to well-being, adjusting their frequency or choosing more cost-effective options can help manage costs during this period.
After paying off the loan and creating another source of income, allocate at least Sh1,000 per week to build a six-month emergency fund.
Once this fund is underway, continue adding to Sacco savings for improved financial stability. For long-term financial progression, pursue certifications or seek higher-paying administrative roles. Participating in free online courses may improve your skills and earning potential in freelancing.
Government programmes such as school bursaries or housing initiatives can be considered to help manage financial obligations.
In the short term (three to six months), it is possible to stabilise your budget and increase income by Sh5,000–Sh10,000 through freelancing to reduce mid-month borrowing. For a year, work towards repaying your Sacco loan, establishing an emergency fund, and increasing freelance earnings to Sh10,000–Sh20,000 per month.
In the long term (two to three years), transitioning to full-time freelancing may be considered, aiming for an average monthly income of over Sh50,000.
You have mentioned that you are currently divorced and shouldering all the burden of parenthood alone. There are legal avenues you can consider to have the other parent contribute financially so that you are not drained. Consult a professional family lawyer.
The process may be challenging, but making budget adjustments, pursuing additional income sources, and maintaining consistency can help achieve financial progress.
Reducing loan amounts, and utilising support networks like single mothers’ groups can provide practical assistance. Persistence in these efforts may contribute to greater financial stability for you.
If you have any money problems, send us an email at [email protected] and leave your number for contact. Money questions will be answered in this column
