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A Kenyan man wrote:
"Hello TUKO, kindly assist me if possible. My net pay is KSh 96,000, which I think is decent, but I am struggling financially. Here's how I spend it: Rent: KSh 17,000, loan repayment KSh 17,000 HELB KSh 4,500, welfare KSh 1,000, pension KSh 6,000, Wi-Fi and Netflix subscription KSh 5,000, baby mama KSh 16,000, support for parents KSh 8,000, electricity KSh 2,500. I don't buy airtime because I am on the employer's post-pay. This leaves me with about KSh 19,000, which I don't budget well; I end up spending on food and shopping. As a result, I often resort to borrowing salary advances, Tala loans, etc. For instance, this month, I've already taken a KSh 35,000 salary advance and spent nearly all of it. This means my next paycheck will only be KSh 61,000, leaving me in the same cycle of borrowing again. How can I break free from this trap? Please help."
Doris Anindo is a financial advisor and Certified Public Accountant (CPA).
Doris Anindo, a financial advisor and Certified Public Accountant (CPA), advised the man to manage his expenses by reducing some of them to create room for savings.
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For Wi-Fi and Netflix subscriptions, she recommended switching to cheaper options.
"I would advise you to change the subscription fee to a cheaper option, such as Poa Net and Mawingu, which charge a subscription fee ranging from KSh 1500 to KSh 3000, depending on Mbps."
According to Anindo, the middle-income earner should consider renegotiating the amount to be deducted from the loan to be around KSh 15,000 from KSh 17,000.
"It will increase the time frame for the loan repayment, but you will be able to save some amount."
She asked him to honestly discuss with his parents how to adjust the monthly support figure to around KSh 5,000 until he's more financially comfortable supporting them.
The financial advisor requested the man in dilemma explain to his baby mama his financial challenges.
"Try and renegotiate the amount to be sending her for the support in the mean time until you are financially stable."
Budget well using this remaining amount by:
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.
In related news, 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.
Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.
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