How to budget KES10000 using the 50/30/20 budgeting method

Let’s budget KES10000.

Budgeting is not for the rich or high-income earners only. Anyone can budget, any amount. No matter how small the income might seem, learning how to budget is crucial.

But what is budgeting? Budgeting is simply telling your money where to go instead of wondering where it went.

In this article, we are going to budget kes10,000.  But before we get started, we need to come up with a subject. That is someone to budget for.

Let’s call our subject Lucy. Lucy is a twenty something year old lady who lives with her parents.

You might be wondering why we are giving these details about our subject. The reason is because personal finance is personal, that means what may work for you may not work for another person. Hence, I have a few assumptions about our subject, Lucy.

Assumptions about our subject

  1. Lucy lives with her parents. That means she doesn’t pay rent. However, she helps out with some of the bills at home.
  2. She works near home. Therefore, Lucy doesn’t incur transportation expenses. She simply walks to work and back.
  3. Her place of work serves lunch during work days. That means Lucy doesn’t have lunch expense during work days.
  4. Lucy is a Christian; therefore, she tithes every month.
  5. She does not have kids, that is she does not have direct dependents apart from helping out with some bills at home.


a calculator,notebook and notes of money

Budgeting KES 10,000 using the 50/30/20 budgeting method.


The 50/30/20 budgeting method states that, 50% of your income should go to your needs. Needs include housing(paying rent/mortgage), utility bills like water and electricity, food, shopping and so on.


30% of your income should go to wants. Things like luxuries. 20% of your income should go to your savings and investments.

Kakeibo Budgeting method

Let’s budget KES10000 for Lucy.

Lucy’s monthly income is KES10,000. According to the 50/30/20 budgeting method, 50% of her income should go to her needs. In this case, 50% of KES 10,000 is KSH 5,000.


Lucy can use KSH3,000 to do some shopping or give her parents as part of helping out with some of the bills. The remaining KSH 2,000 she can use it for her other needs like paying for medical cover KES 500.


30% of KES 10,000 is sh3000. This amount can go to her wants. Things like getting her hair and nails done at around KES 1500, the remaining amount can cater to other miscellanies like airtime.


20% of KES 10,000 is Ksh2,000. This amount can go to savings and investments. In this case, our subject Lucy is a Christian, therefore half of this amount, 10% will go into tithing. That is KSH 1000. The other KSH 1000 will go into saving in a money market fund.


As seen above we have budgeted KSH10,000 monthly income. Despite this amount being small we have been able to cater to our subject’s needs, wants and even giving and saving/investing. This has proven that a small income can still be budgeted.


Let me know, how much should we budget next?

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