“I Earn KSh 30k Monthly But My Expenses Exceed KSh 45k, What Should I Do?": Expert Advises

• A Kenyan man who earns KSh 30,000 sought advice on how to manage his expenses as he was left broke each month
• The man broke down his monthly expenses, including allocations to rent, his girlfriend and house shopping
• Personal finance expert Eric Muchoki advised him to reduce non-essential expenditures to ensure he saves at least 20% of his salary

A 28-year-old Kenyan man named James wrote:

"My name is James. I am in a deep financial mess. I earn KSh 30,000, but my monthly expenses exceed KSh 45,000. The breakdown is as follows: Rent – KSh 2,200, KPLC tokens - KSh 1000, Wi-Fi - KSh 2000, GOtv subscription KSh 2000, water – KSh 800, golf training – KSh 10,000, gas – KSh 1600, girlfriend upkeep – KSh 10,500 (KSh 350 per day), house shopping – KSh 10,000, gym – KSh 5,000. I am afraid of losing my girlfriend if I don’t give her some cash and I now survive on digital loans. What should I do to reduce this expenditure and start saving? Please help.

Eric Muchoki is a personal finance expert and director at Customized Solutions Insurance Agency.

Why you should learn to say no

In an exclusive interview with TUKO.co.ke, Eric Muchoki, a personal finance expert noted that James was living beyond his means.

He advised him to learn to say no when dealing with his girlfriend, who demands at least KSh 10,000 monthly.

"You're simply living beyond your means. In your case, you must be intentional about resolving your financial mess, as you put it. Be resolute and unapologetic about making necessary decisions, however tough they may be. Learn to say no when necessary. You don't have to agree with everything like everyone else. Saying yes is not always the right answer," Muchoki recommended.

The expert expounded that James's relationship was on the wrong footing and that he should find another girlfriend who would love him the way he is instead of his money.

"If you lose your job, would you still sustain it? If your girlfriend finds a guy who is more loaded than you, would you maintain that momentum? Look for someone who loves you the way you are."

Which expenditures should James cut?

Muchoki elaborated on other non-essential expenditures that James should cut to save some money.

I have quickly picked three avoidable expenditures, which will bring your monthly expenses to KSh 27,600 if you're willing to cut.

This includes switching from paid TV to free-to-air.

How often do you watch your TV? Why not buy a free-to-air decoder, which will cost you only the initial cost?

"Instead of paying KSh 5,000 monthly for the gym, why not consider jogging, buying dumbbells and any other affordable gym equipment, and starting to practice in your house? You can learn and practice guided by YouTube and still achieve results," he guided.

Disclaimer: The advice in this article is general and not intended to influence readers' decisions about solving financial challenges. Before making a financial decision, readers should always seek professional advice that considers their circumstances.

Do you have a story to tell? Want an expert's advice? Please email us at askanexpert@tuko.co.ke with 'Ask an expert' in the subject line.

Retired teacher seeks pension advice

In related news, a 61-year-old retired teacher sought advice on how to spend a lump sum pension of KSh 2.5 million he got from the government.

The man revealed that he built his retirement home, and his children had completed their education except for one who is in university.

Muchoki advised him to invest the entire amount in a Money Market Fund (MMF).

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke