Across Kenya and many other parts of the world, the economy has become a daily battle. Salaries remain stagnant while food, transport, and rent keep climbing. Yet millions of people still find ways to navigate these tough times and stay financially afloat. It takes discipline, strategy, and sometimes a complete shift in mindset. Here is a practical, reality-based guide on how you can survive—and gradually thrive—even when your salary is small. In Kenya, the cost of living crisis is driven by factors like high food prices, fuel costs, and taxes, making it essential to adopt smart financial habits.

1) Live below Your means

It may sound obvious, but it is one of the hardest habits to master. Living below your means, means choosing the cheaper house even when your heart wants the more stylish one. It means cutting off some luxuries, resisting impulse buying, and learning to differentiate between wants and needs. While it may feel restrictive, this simple mindset shift creates space in your finances and reduces daily pressure. For instance, in Nairobi, opting for affordable housing and transport can save thousands of shillings monthly, as many Kenyans downscale by cooking at home and limiting dates or outings.Financial experts recommend tracking expenses to identify leaks, such as unnecessary subscriptions or high-interest loans, which can exacerbate financial strain in tough times.

2) Learn High- paying Skills

One of the smartest responses to a tough economy is upgrading yourself. High-paying skills are the new currency. Whether it is digital marketing, coding, graphic design, social media management, copywriting, or data skills, learning something valuable can open doors to better-paying opportunities. Many of these skills can be learned online at little cost. In a world where salaries can take years to grow, skills can change your income far faster. In Kenya, skills like data analytics, AI, cyber security, and cloud computing are in high demand for 2025, potentially leading to salaries over Ksh 100,000 monthly with online platforms offering free or low-cost courses. Other valuable options include web design and content creation, which can be self-taught and turned into freelance gigs earning substantial side income.

3)Do monthly budgeting

If you are earning little, budgeting is not optional—it’s survival. A monthly budget helps you track how every shilling is used. You get to see what to cut, what to prioritize, and how to stretch your income to the very end of the month. Think of it as your financial map; without it, it is easy to get lost. For low-income earners in Kenya, the 50/30/20 rule—50% on needs, 30% on wants, 20% on savings—can be adapted; for a Ksh 50,000 salary, this means Ksh 25,000 for essentials like rent and food.Use zero-based budgeting where every shilling is assigned, starting with true take-home pay after deductions, and prioritize essentials while tracking with apps or spreadsheets.

4)Save and invest

People often say they cannot save because their salaries are too small, but saving is more about consistency than size. Even small amounts build up over time. Once you start saving, begin exploring simple investment options—SACCOs, money market funds,stock markets or government securities—anything that helps your money grow. In a tough economy, savings and investments act like your financial shock absorbers. In Kenya, money market funds (MMFs) offer 8-11% annual interest with starting amounts as low as Ksh 500, making them accessible for low earners.Other options include Treasury bills, mutual funds, and mobile wallets for automated savings, or joining chamas for group saving with low capital. Aim for an emergency fund covering 3-6 months of expenses to buffer against economic shocks.

5) Avoid partying

Let’s be honest—nightlife is expensive. Transport, drinks, food, entry fees, and spontaneous spending can wipe out your budget in a single evening. Scaling down your partying habit can significantly improve your financial stability. It does not mean you stop having fun; it simply means choosing fun that does not drain your pocket. In Kenya, a night out can cost Ksh 2,000-5,000 per person on drinks and food alone, depending on the venue, making frequent outings unsustainable for small salaries. Opt for home gatherings or free community events to maintain social life without the high costs.

6) Avoid Eating out frequently

Eating out may feel convenient, but it quietly consumes a big chunk of your income. Cooking at home is one of the most effective ways to cut costs. A single restaurant meal can equal two or three home-cooked meals. Meal prepping, buying groceries in bulk, and planning your weekly meals can save you thousands every month. In Kenya, an inexpensive restaurant meal costs around Ksh 500, while a mid-range meal for two is Ksh 4,000, compared to home cooking which can reduce food expenses by half.Bulk buying staples like maize flour and vegetables at markets can further lower costs for low-income households.

Conclusion

Surviving a harsh economy with a small salary is not easy—but it is absolutely possible. With the right combination of discipline, smart planning, and strategic upskilling, you can stretch your income, build financial security, and position yourself for better opportunities. The journey may be tough, but every small step today builds a stronger financial tomorrow. Remember, supporting local production and efficiencies in supply chains can also help mitigate broader economic pressures.