The Question: My name is Eunice. I work in the public sector. My gross salary is Sh50,000 and after taxes and deductions I take home Sh38,000.
My husband is an intern teacher at a public primary school in Nairobi. His take home is Sh17,000. We have one child who is in kindergarten and requires after school care since we work full day. We are seeking help on how to budget our earnings and start growing wealth.
Our short-term goals are to become financially stable, meet our personal needs, and move from Mathare to a better neighborhood. Our long-term goals are to buy a plot within the Nairobi metropolitan areas (Kiambu or Machakos) within the next five years and start building.
We would also like to secure our child’s education so that we don’t struggle in future. Please help us plan.
The Answer as provided by Muthoni Njakwe, an accountant and the author of personal finance book Her Shilling, Her Power: A Woman’s Guide to Financial Freedom:
First, let me commend you and your husband for being intentional about your future. The fact that you are thinking about budgeting, financial stability, and investing with what you currently earn shows maturity and foresight.
Many people wait until they start earning huge salaries before they begin planning, but that is not how wealth is built. Wealth is built by people who begin with what they already have and grow it step by step.
You already have two important advantages: stable incomes and clear goals. With discipline and proper structure, it is very possible for you to achieve the goals you have set for your family.
Actionable steps to undertake
Your combined income after deductions is Sh55,000 per month. Let’s go step by step on how you can structure it to meet your household responsibilities while also securing your future.
1). Organize your monthly budget
The first step is to give every shilling a purpose. With 55,000 per month, your money needs to balance three key areas: living expenses, savings, and future investments.
A practical and sustainable structure would look like this:
Living Expenses – 50 percent. This covers rent, food, transport, childcare, utilities, and other basic household needs. 50 percent of 55,000 is 27,500. This means your core monthly expenses should ideally stay around 27,500. This forces discipline and ensures that your income is not fully consumed by day-to-day living.
Savings – 30 percent which amounts to 16,500.
This portion should go toward an emergency fund, saving for the plot and setting aside money for your child’s future education. Savings is what turns your income into security and opportunity.
Personal and flexible Spending – 20 percent which amounts to Sh11,000.
This covers personal needs, small family treats, clothing, social obligations, and other lifestyle expenses. Having a controlled portion for flexible spending helps you maintain balance without feeling deprived.
The goal is not to deprive yourselves, but to avoid lifestyle inflation, where spending increases every time income increases.
2). Build an emergency fund first
Before you start investing or acquiring assets, build an emergency fund first. Life is unpredictable. Unexpected medical issues can arise, jobs can be delayed, or family emergencies may occur.
An emergency fund is a buffer that ensures that if such events happen, you don’t have to borrow money or disrupt your other savings.
An effective fund should cover three months of your essential living expenses. For example, if your essential monthly spending is around 30,000, your target emergency fund would be approximately 90,000.
Keep the fund in a safe and accessible place, such as a Money Market Fund (MMF), so it is available whenever you need it while still earning some return that helps it grow over time. This step creates a solid foundation for financial stability and gives you peace of mind before pursuing bigger financial goals.
3). Start saving for land and your child’s education
Once your emergency fund is fully established, it’s time to focus on your next priorities: purchasing land and preparing for your child’s education.
Instead of putting all your savings into one goal, you can split your Sh16,500 monthly savings:
Sh14,500 per month toward your land goal
Sh2,000 per month toward your child’s education
By saving Sh14,500 per month for land, you would accumulate approximately Sh174,000 per year. In two years, you would have around Sh348,000, slightly more if placed in a high-yield interest account.
This could either secure a plot outright in developing areas within the Nairobi metropolitan region, or serve as a strong deposit, which will give you a solid start toward owning land.
By allocating Sh2,000 per month to your child’s education at the same time, you begin building a foundation for future school costs early. Over time, even small monthly contributions grow into something meaningful.
Splitting your savings in this way allows you to make steady progress on both goals at the same time, without having to delay one goal in order to pursue the other.
See More: This is how I budget my Sh22,000 monthly salary in Nairobi
4). Look for ways to increase your income
One of the fastest ways to reach your goals is to increase your income, even by a small amount. With your current plan, you are already saving and managing your finances well, but additional income can accelerate your progress significantly.
You can start small side hustles – anything from selling groceries, snacks, school supplies, or household items online, to offering services within your community. You can also explore part-time work or leverage your existing skills to earn extra income.
Even an additional Sh2,000–5,000 per month can make a meaningful difference. This extra income can help strengthen your savings, support your child’s education fund, and even help you prepare financially for other goals like moving to a better neighborhood. The key is to remain consistent, realistic, and choose opportunities that fit your schedule and energy.
5). Plan your move to a better neighborhood gradually
Moving from Mathare to a better neighborhood is an important goal for your family, but it should be done carefully and gradually so that it does not disrupt the financial progress you are making.
Start by identifying affordable areas that are still improvements from your current location. Areas such as Ruai can offer safer environments, better amenities, and more space for your family while still remaining within reach of your income.
When planning the move, remember that relocation usually requires a rent deposit, rent advance, and small moving expenses. This is where the additional income you generate can be very helpful.
By setting aside part of that extra income for several months, you can build a small moving fund without interfering with the savings you are setting aside for land or your child’s education.
Also ensure that the new rent fits comfortably within your living expenses and does not reduce the money you are saving for your long-term goals. The objective is not just to move, but to improve your living situation while keeping your finances stable.
6). Track your progress
Tracking your progress is what turns financial dreams into clear, achievable milestones. Keep a simple record of your income, expenses, and savings each month. Regularly check how much you’ve saved toward your emergency fund, land, and your child’s education, and make adjustments where necessary.
Remember, progress isn’t just about hitting the final target, it’s about celebrating small wins along the way and using them to build momentum toward bigger achievements.
Eunice, building financial stability and achieving your goals is a journey, not a race. With discipline, careful planning, and consistent action, every step you take brings you closer to a secure future for your family. Start with what you can control today, stay focused on your priorities, and watch how steady progress transforms your dreams into reality.
A version of this question and answer was previously published in the Saturday Magazine. The Saturday Magazine is a publication of the Nation Media Group.
