It’s normal to live beyond your means, especially if you live in Nairobi, but there are several actions and sacrifices to take in order to live within your means. Some of the actions may be painful but you have to take them anyway.
- Avoid unnecessary roadside shopping
This is a practical scenario: you have Ksh1,000 in your pocket and after alighting from a matatu,you see someone roasting maize. Since you have an extra Ksh10 and you think it is small money you decide to buy the roasted maize. When you are spending the Ksh 10 on maize, it means you are Ksh10 poorer .This kind of spending starts as a joke and with time it becomes a habit.
Another scenario is when you are just passing by the roadside and notice someone selling nice shoes for Ksh 300.You say to yourself: “these shoes are nice, let me check whether they can fit me”. The trader with a honey coated tongue will sweet talks you, you then decide to buy the shoes. You wear the shoes twice and get bored with them.Looking at your wordrobe, there are more than 20 pair of shoes lying idle…you only wear three pairs on regular basis.
When you adopt the habit of unnecessary roadside shopping, you end up wasting your money, which translates to one living beyond their means.
- Avoid women
If you are a man, earning a decent salary, women won’t resist you. As a man, you may feel a conqueror, you will feel a lion, the only king in town but at the end of the day you are a loser. Women can drain you my friend.
I believe you have noticed that successful men avoid women as much as possible. They only interact with their one wife, business partners and relatives. They do so because they understand the consequences of having a chain of women as concubines.
The only way you can budget for your money is when you know it’s only you and your family…and the only way to live beyond your means is when you have more than one girlfriend.
- Save before you spend
A newly employed person would always be excited to spend once his salary reflects in the bank account. Before he realizes he has spent a good proportion, the money is almost exhausted.
Financial advisors would tell that the most progressive people are those who save before they spend. When they do so and adopt financial discipline, chances of living beyond their means are minimal.
- Always ensure rent does not exceed 15% of your salary
Another advise I regularly give to salaried people is that rent must not exceed 15 % of their income, But the most unfortunate thing, moreso for the Nairobians,is that rent goes beyond 40 %.
Assuming your net salary is Ksh 50,000 and you rent a one bedroom house where your monthly rent is Ksh 20,000.It means you only have Ksh30,000 to spend. This money is not even enough for shopping, transport and miscellaneous expenses. If your net salary is Ksh50, 000, make sure the rent you pay does not exceed Ksh13, 000.
- Don’t buy a personal car if your net salary is less than Ksh70, 000
A personal car can consume in excess of Ksh20, 000 per month in fuel and other miscellaneous expenses. If your net salary is less than Ksh70, 000,I can bet, you will always borrow money from friends, take salary advance and even use dubious means to get money so as to finance your lifestyle.
Using public transport will be a wise decision for individuals earning below Ksh100, 000.
- Reduce alcohol, reduce friends
If you are fond of entertaining your friends and taking alcohol as you wish, chances of saving are minimal.
Most of your friends are only stuck with you because they benefit from you, if you are faced with a serious problem, you won’t see them.
You seriously need to audit your friends and eventually remain with few faithful ones.