Quote of the Week: "The cold harsh reality is that we have to balance the budget."~ Michael Bloomberg.

budgeting tool

If you are a regular follower of our blog, the Weekly Update (or read a couple personal finance tips) you will have come across the topic of budgeting a couple of times.

Everything about personal finance seems to revolve around a budget. Want to save more? Budget. Want to clear your debt? Budget. Want to avoid debt? Budget. Thinking about saving for retirement? Budget. Where do you start with your budget then?

Let’s look at budgeting in-depth. The following is a template of a budget. For the purposes of illustration, we will budget with a salary of Ksh. 20,000 in mind. Obviously, this will vary with every person.You can use this template to tailor your own budget to fit your income, needs & goals.

Item Percentage Amount Budgeted Amount Spent

Living Expenses

(Rent, power, water, gas/charcoal)

40% 8,000

Everyday Expenses

(Shopping, daily groceries, transport)

40% 8,000


(Emergency Fund, goal-based saving, Retirement savings)

10% 2,000
Entertainment 5% 1,000
Miscellaneous 5% 1,000
Total 100% 20,000

Note: If you have a loan, include debt repayment in your budget. Miscellaneous expenses are all small expenses that you may incur during the month.

Conclusion: Budgeting is not an alien concept. Governments do it so do individuals. This simple template is not cast in stone. It is just a basic guide and you can tailor it to fit your goals & needs. But sometimes, setting a budget is never the issue. The problem starts when you start implementing it. Many don’t follow their budget. Most don’t review it. Don’t make the same mistake. Having a budget & following it will give you financial discipline which is often the difference between wealth & financial struggle.

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