The current difficult economic time in Kenya has become an increasingly pressing problem. Many Kenyans are feeling the pressure of higher living costs in Kenya. The value of the Kenyan shilling has been dropping, causing concerns that more challenging economic times are ahead as people have less money to spend.
Due to a drop in the value of the Kenyan shilling, more challenging times are on the horizon as the economy is anticipated to slow down. The cost of essential items has risen rapidly, while many workers are earning less, and others have lost their jobs.
The cost of necessities has risen, whereas many individuals face decreased income and unemployment. This means they need help to afford to live a good quality life. The consequences of these issues are evident as many Kenyans struggle to cope with the country’s ever-rising living costs.
Tips for Navigating the Hard Economic Situation in Kenya
As Kenyans struggle to make ends meet, finding ways to navigate these harsh economic conditions becomes paramount. Here are some practical strategies to steady the boat and weather the storm during these challenging times:
#1. Budget Wisely
During difficult financial times, a detailed budget that reflects your income could be a saving grace. A budget offers a window into how much income you have and how it is being used. With this insight, you can quickly identify where to make sensible choices. As a result, you will have reduced or eliminated useless expenditures. Consequently, you will have more cash to help you ride out the challenging financial times.
Things like rent, food, electricity, transportation, clothes, and other essential expenses should be covered by your budget. Typically, rent takes a large portion of many people’s income. Financial advisors recommend not spending more than 30% of your gross income (before taxes) on rent. According to studies, persons who spend more than this frequently have financial troubles.
#2. Save Money and Items
Setting aside some money as an emergency fund, even small, is vital. Experienced money experts suggest a good plan to have a savings fund to pay for your expenses for around six months, especially when you don’t have extra money. They also advise that setting aside at least 20% of your monthly earnings is smart. This helps keep you secure when your income is not steady such as during challenging economic times.
Alongside this, be conscious of how you spend each day between paychecks. Adopting cost-effective alternatives can make a significant difference. Find cost-effective options for essential goods and services without sacrificing quality. Explore bulk buying and consider locally sourced products.
Simple changes like using less electricity, preparing meals at home, and finding discounts on essential items can accumulate into substantial savings over time, strengthening your financial resilience. Additionally, research alternative providers for services like the internet and insurance to ensure you get the best value.
#4. Explore Opportunities to Earn Extra Income
To bridge the income gap when your salary falls short, consider engaging in an income-generating activity alongside your main job—a side hustle. Identify income-generating avenues, such as renting out unused spaces or offering services based on your skills.
This supplementary income can also come from leveraging your existing skills, launching a small business, or utilizing underutilized assets. For instance, if you have a vehicle, transforming it into a part-time taxi service after work and on weekends could provide an additional revenue stream.
Whether monetizing a hobby, providing consulting services, or tapping into the gig economy, creating additional income streams can provide you with financial stability and the ability to overcome economic challenges.
#5. Network, Collaborate, Get Referrals
In the modern world, networking is pivotal in enhancing your net worth. Make your skills or business known within your network, as recommendations from acquaintances can lead to valuable opportunities. Strengthening relationships with those who understand your capabilities increases the likelihood of being recommended for relevant opportunities.
Build a robust support network with like-minded individuals. Join relevant social media groups for guidance, tips, and shared resources. Networking with others facing similar challenges can provide valuable insights, cost-saving tips, and even potential income-generating opportunities you might not have discovered otherwise.
#6. Keep Learning and Adapting
Given the evolving job landscape, possessing diverse skills is crucial. Employers increasingly value individuals who have versatility and a range of competencies. Embrace a learning mindset. Continuously acquire new skills and adapt to evolving circumstances to stay relevant and resilient.
Tap into the wealth of free online resources and courses to learn new skills that can generate income. Online learning platforms and communities offer a wide range of courses, tutorials, and guides that can enhance your expertise, opening up opportunities for personal growth and financial gain.
Learning an extra skill can make you more indispensable to your employer during turbulent periods. This additional skill can open doors to alternative income sources and entrepreneurial pursuits.
#7. Practice Good Financial Management
Educate yourself on sound financial management. Seek resources and books that offer valuable insights into making informed financial decisions. A solid understanding of financial principles equips you with the knowledge and confidence to navigate economic challenges effectively.
Minimize debt usage, pay off existing debts, and avoid high-interest loans. Renegotiate payment terms if necessary. High-interest debts can become a financial burden, so prioritizing their repayment and working out more manageable payment plans can free up your financial resources for more pressing needs.
#8. Focus on Preventive Healthcare to Stay Healthy
Prioritize your health with a balanced lifestyle and healthy diet to prevent costly medical expenses. Consider obtaining health insurance coverage. A healthy body and mind are essential for effectively managing and overcoming economic difficulties.
Cultivate a positive outlook to help you navigate through challenges. Focus on growth opportunities and solutions rather than dwelling on setbacks. A positive mindset boosts your mental well-being and enhances your creativity and resilience in finding innovative solutions.
#9. Stay Connected with Your Community
Engage with your community, pooling resources, skills, and knowledge to provide mutual support during difficult times. Establishing strong community connections creates a safety net that can provide emotional and practical support when facing economic uncertainties.
Collaborate with trusted friends or family members to share expenses, reducing financial burdens. Resource-sharing not only lightens individual financial loads but also fosters a sense of community support and solidarity during challenging times.
#10. Support Local Businesses
The call to Buy Kenya, Build Kenya says it all. Prioritize purchasing from local businesses and artisans to contribute to the economy’s growth and stability. By supporting local businesses, you help bolster your community’s financial health and foster a sense of solidarity that can lead to reciprocal support in times of need.
#11. Energy Conservation
Reduce utility bills by conserving energy. Turn off lights and appliances when not in use, and consider alternative energy sources like solar power. Energy conservation contributes to lower bills and aligns with environmentally friendly practices, creating a win-win situation for your wallet and the planet.
Consider using public transportation when feasible, reducing fuel and vehicle maintenance costs. Opting for public transport helps you cut expenses and contributes to environmental sustainability by reducing carbon emissions.
Take Action with Balozy
In these tough economic times, let Balozy be your partner in finding affordable services and building financial resilience. Find local service providers for home repairs and maintenance to keep costs under control. Join our network to offer your services and get referrals, expanding your opportunities.