Living on a $400 income as a fun-loving human in Dar es Salaam
Heeey fam!
So, when I wrote my last post about how I’m reconciling my $70,000 degree with my $400 wage -$435 (TZS 1,000,000) to be exact 😂- I thought I’d just have to come back here n’ share a cute lil-spreadsheet with my monthly expenses on it and be like, there! 😂But, the comments, questions and love all y’all’s gave me on that piece made me realise I kinda have to share the whole shebang now! 😂 Which is huge! One because I’ma be exposing myself even further and two, because I get to say, -read in a typical YouTuber voice- “I know a lot of you have been asking me,” LOL! 😂 But on a serious note though, I’m truly grateful for the affirmations and for giving me the courage to keep being a #VulnerableCreative.
Now that that’s out of the way, let’s talk about this budget thing, shall we! So, the whole point of a budget to me is to manage and spend my money in a way that lets me 👏 live 👏 my 👏 best 👏 life! And that looks different for everyone so, you need to figure out what that looks like for you and pick any budgeting method out there to help you get to that goal. I just happen to use the zero-based budgeting method. The whole concept of a zero-based budget is to make sure that by the end of each budgeting period your income minus expenses equals zero. This ensures that each one of your $ is accounted for, which is especially important when you only have $435 of them to go around 😂.
My actual budgeting process is very simple! I have a spreadsheet to plan out my ideal monthly budget. And, I use the Money Lover app on my phone to manually record daily expenses. That’s it! Fortunately for those of you in the Americas, an app like Mint might make more sense and be even more useful because it can connect directly to your bank account and automatically record all your expenses as you use your card.
The budget itself is also nothing special. It’s just a reflection of where I’m at with my finances today. So, before you go download or copy and paste it as it is, please consider the following thought process that I went through to arrive to this budget:
1: Know where your money is coming from and where it is/should be going
When I moved back home to Dar es Salaam from the Serengeti, I took a pay cut. On top of that, I already knew that my expenses were bound to increase because of the nature of urban life -the clubs, the beach, the endless list of happening places. So, I sat down and made projections of potential expenses that I might incur and then proceeded to keep a close eye on how my income was being used. After two months, I knew exactly how much money I was guaranteed to earn every month, and how I needed to allocate the funds between competing needs and wants.
Currently, and even then really, my only guaranteed income is my monthly stipend which as I mentioned before is only TZS 1,000,000 ($435). And because I’ve chosen to use the zero-based budgeting method, that amount is spent in full each month. I’m literally living paycheque to paycheque! 😂
Which is why my next point is so important!
2: Define your best life and prioritise allocating money to expenses that let you live it
Like I mentioned before, budgeting for me is just a way of making sure I’m getting the greatest amount of joy and comfort possible out of the money I already have a.k.a #livingmybestlife. And I understand that everyone’s definition of “best life” i.e. what makes them feel accomplished, happy and fulfilled is different. So,I had to spend some time figuring out what living MY best life could mean. The things I had to consider when thinking about this were; my means, my values, my goals and my priorities. And the answer for me was that I value living a healthy, clutter free, creative, and growth filled life. And my goals are to advance in my career, to open a creative social business someday, maybe get a PhD in the process, to own a home one day, and most importantly to attain financial freedom. As such, my expense list prioritises things that propel me towards these joys, comforts and futures. But, it’s not enough to just define your priorities and assign a $ value to them, you need to know how they rank in your life because when push comes to shove -and push will- you wanna know what you’ll be willing to sacrifice.
Below is a snapshot of MY current monthly expenses, in order of priority -literally what I pay for first to last- as a benchmark…. but AGAIN, please 👏do 👏what 👏feels 👏right 👏for 👏you.
This leads me to my next point:
3: Be flexible with your budget and be prepared to shift things around when you need to
Imagine, even when you’re living paycheque to paycheque like me, your expenditures vary from month to month! So, you really need to know your budget well enough to know how to adjust it when you need to. For example, in June this year, I wanted to go on a 🏝beach trip which would’ve cost me more than the TZS 25,000 ($10.87) I’ve allotted for outings. The trip was gonna cost TZS 60,000 ($26.09). Now, because this was an important trip for me, I chose to combine my drinks and restaurant budgets as well as reallocate some money from my tea fund to accommodate it in my tight budget.
Now, adjusting your budget isn’t just about reallocating funds, it could also mean an unexpected increase in income or decrease in expenditure. Just last month, for example, my sister paid for my nail appointment. Because of that, I saved TZS 20,000 ($8.70) from my personal grooming budget which I was able to put into my investment fund. Isn’t that great! Now, I could have just decided to spend that money on something ridiculous like a pizza or something but I didn’t 😂. Because pizzas weren’t part of my journey that day 😂but then also because I actually have a rule on how I spend any extra cash that I get.
If it’s a small amount resulting from a reduced monthly expense, I just put it in my UTT Liquid Fund Investment account. If it’s a significant amount from an additional income, my strategy is to save 20%, invest 70% and spend 10% of it at my own discretion. So, how you decide to spend any additional income or funds saved from reduced expenditure, should ideally still reflect your values and goals. Don’t just buy a new makeup kit or extra lives on Candy Crush 😂 because you got a bonus cheque! Unless your goal in life is to be a makeup artist or a professional candy crusher or something, LOL!😂
And finally,
4: Cut down or cut out expenditure that isn’t in line with your best life
Literally shed off all the things that don’t help you live or get to your best life fam! For me this has meant making decisions like:
Living with my siblings instead of getting a random roommate -that’s the secret to my low rent you guys 😂;
Putting my mattress on a pallet on the floor instead of commissioning a custom bed frame for TZS 600,000 ($260.87) - saves space and a dime 😂;
Getting a TZS 70,000 ($30.43) wooden clothing rack instead of a TZS 2,000,000 ($869.57) custom fitted wardrobe -if you thought it was a Pinterest inspired decision please keep that thought 😂;
Locking my hair because I couldn’t justify spending TZS 50,000 ($21.74) on beautifying dead cells every month 😂;
and -perhaps the most controversial of all- Opting to use reusable sanitary towels instead of the overpriced disposable ones. Good for the earth and my wallet! Doesn’t get any better than that!
I understand that some of these may be a little extreme for you so, don’t think I’m asking you to make these exact decisions. What I’m saying is that, there’s probably room in your current budget to also cut down some expenses in favour of your long term goals. You catch my drift? Something as simple as reducing the amount of times you frequent an ATM is TZS 1500 ($0.65) saved. Going on an alcohol-free steak for a couple of days (or weeks if you’re brave LOL! 😂) may be just what you need to afford those sneakers you’ve been dying to get! Honestly, any small adjustment you make to save money goes a long way in ensuring you’re spending on, or saving for, the things that actually matter to you!
Et voila! That’s how you get a budget that works and allows you to live your best life!
So, fam tell me... Is there anything I mentioned that particularly piqued your interest in the way I budget or spend my money? Let me know in the comment section below. I’m excited to hear your thoughts!
Much love,
Bernie
