With the high cost of living and the probability of an even more difficult year, it is important to begin 2024 prepared on how to maximize your income.
According to statistics from the Kenya National Bureau of Statistics (KNBS), the average monthly income for Kenyans stood at Ksh20,123 as of December 2022.
You don’t have to go broke in 2024 if you did in 2023. The new year comes with its sets of
This article expounds on some of the key tips that could help you navigate another rough economic year, 2024.
Consider moving houses in 2024
One of the ways you can reduce expenditure is to reduce your rental expenditures.
Economists advise that one should only spend 30 per cent of their monthly income on rent, including utility bills like garbage, water and electricity costs.
To do this, you can choose to move houses depending on the size and location of the house you lived in, in 2023.
If you still want to maintain the location, you can downscale. For instance, move to a one-bedroom house if you really don’t need that extra bedroom.
Also Read: Sakaja Increases Taxes on Rent and Drinks
Alternatively, if you do not want to let go of that house, you can decide to accommodate a roommate and cost share. However, this arrangement comes with fair share of challenges.
This way, you can reduce your expenditure while still enjoying your favorite home or location.
In other words, the bottom-line is to live within your means.
Save as much as you can from the little you earn
The savings rule according to financial experts is to save at least 10 per cent of your monthly income.
According to the World Economic Forum report 2023, it is important to rethink what you consider future crises to avoid misuse of funds on non-crises.
This means that if there is something that you absolutely don’t need now, don’t buy it. Save that money for when you will actually need it.
Also Read: A Percentage of Tala Borrowers Have Adopted Saving Culture
If you don’t have to eat a Ksh2000 burger and fries for lunch today, don’t. Find a cheaper, just as satisfying and tasty alternative.
You can also save by making bulk purchases to reduce your spending. However, you should be careful not to overstock in order to avoid wastage when the food you purchased goes bad.
Stick to a Budget
You should avoid extravagant habits such as takeout, impulse purchases, and an excessive partying lifestyle. To avoid living beyond your means, it is best to stick to a budget.
When you don’t plan, you can easily get into debt or rely on loans for your survival.
In 2024 however, it is critical to budget once you receive your salary in order to avoid living beyond your means.
