We are living in a very different era of financial hardship. We are all receiving salaries that we think is not enough. But did you know in matters salary, nothing is ever enough. We will dive deep and try and breakdown on how you can use your small salary to your advantage.

1. Living below your means.

It takes a lot of courage to leave a life that is not really enjoyable. People try to stretch their little money and try to have a lot of material goods that can’t build us. Mostly they destroy our money for things that depreciate as soon as they are bought.

2. 80/20 rule.

This rule dictates that 80% of your income to be used for daily expenses and 20% is used for savings. Data from the Central Bank of Kenya(CBK) shows that of the 2million bank accounts, only 2.6% have an amount above Kshs 100000. It takes a lot of discipline to save money. The 20% should then be placed in a savings account and when done consistently, a huge amount will be collected. The other 80% brings us to the last point…

3. Budgeting

The 80% should be then placed under a budget that covers all expenses. Food and rent should come first, followed by rent if any and bus fare. The next covers miscellaneous items and also some little money for you to go to a hotel and spoil yourself. This should be strict and not overpass it.

The above steps are just basic to balancing the already difficult financial situation. Remember discipline is key to financial freedom.