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7 Ways To Survive Tough Economic Times With Reduced Income

Majority of Kenyans are lamenting the increasing cost of living, with few unable to purchase everything they need for a decent living

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The Kenyan economy is likely to decelerate towards the end of the year due to the erosion of household purchasing power, the lack of dollars and the weakening Kenyan shilling.

Already, a majority of Kenyans are lamenting the increasing cost of living, with few unable to purchase everything they need for a decent living.

Despite the increased cost of living, for a majority, their income remains stagnant, or rather shrinking due to the skyrocketing cost of basic needs.

Business Today highlights a few ways you can steady the boat in tough economic times like these:-

  1. Rent

A popular standard for budgeting rent is to follow the 30% rule, where you spend a maximum of 30% of your monthly income before taxes (your gross income) on your rent.

According to previous research, it has been found that people who spent over 30% of their income on housing were “cost-burdened.”

2. Savings

Experts recommend that you save at least 20 percent of your income every month. The savings should be able to take you through tougher times, when your income is not steady.

According to financial experts, your savings should be able to take you through six months without any supplementary income, should you lose your income.

3. Budget

It is always a rule of thumb that you live on a budget.

Depending on your income, you should have a periodic budget for needs and wants such as food, electricity, water, transport, clothing and other needs.

Once you have such a budget, be disciplined and stick to it. The only way to stick to your budget is by living within your means, avoiding impulse buying and avoiding being influenced to spend by family and friends.

4. Offers

Before you spend on your budget, look for the cheapest options. Sometimes major retailers have offers on goods you had planned to buy.

If you get any offers, buy during that time. It will help you save more.

5. Extra income

Sometimes, if you are employed, your salary might not cater for everything you would have wished to have.

To supplement your income, have some income-generating activity aside from your main job, what Kenyans term a side hustle.

It could be from a skill set you have or a business, or from an asset that you rarely use.

For example, if you have a car that you use for business you can convert it to a taxi after work and during weekends.

6. Network

They say your network is your net worth. In the modern world, the best way to market yourself is to have people know about your skills or your business. If the people who know you get opportunities that fit what you offer, they are more likely to recommend people they know, including you, if you are good at what you do.

7. Learn an extra skill

The world is fast moving away from unskilled labour.

Employers are looking for holistic people rather than specialists who do not possess extra skills in other fields. Keep abreast and learn a skill that your employer can not let go in turbulent moments.

Also, the extra skill can help you engage in other income-generating activities.

Read: Ecobank Partners With Visa To Equip MSMEs With Practical Business Skills

>>> Regional Jitume Labs Launched To Equip Youth With Digital Skills

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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