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Costly Mistakes to Avoid Making During the First Week of Receiving a Salary
Receiving your salary can feel like a fresh start, a moment of financial freedom. But for many Kenyans, that feeling is quickly replaced by a sense of dread as the money seems to vanish in a matter of days. The first week is crucial, as the spending habits you adopt then often set the tone for the entire month.

Greetings, and welcome to the 36th edition of the Wallet Wellness Newsletter - your midweek source of practical financial tips to elevate your money management skills!
We hope you got a chance to read last week’s edition, where we discussed how to grow your savings through the no-spend challenge. This week, we shift gears to the costly mistakes to avoid making during the first week after receiving your salary.
As always, be sure to check out the Concept Corner below for a deep dive into the money concept of the week.
Let’s dive in!
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MONEY254 TIP OF THE WEEK
Costly Mistakes to Avoid Making During the First Week of Receiving a Salary
Receiving your salary can feel like a fresh start, a moment of financial freedom. But for many Kenyans, that feeling is quickly replaced by a sense of dread as the money seems to vanish in a matter of days.
The first week is crucial, as the spending habits you adopt then often set the tone for the entire month. To secure your financial health, it's essential to avoid these costly mistakes.
1. Falling for ‘Treat Yourself’ Culture
After a month of hard work, it's tempting to ‘treat yourself’. This often leads to overspending on non-essential luxuries right after payday. You might justify buying an expensive lunch, a new outfit, or going for a night out with friends.
These expenses, while seeming harmless, eat into your budget before you've even accounted for your needs. Instead, set aside a small, fixed amount for treats after you've covered all your essential bills.
2. Paying Bills Late and Incurring Penalties
Some people delay paying bills to enjoy their newfound cash for a few days. This can be a grave error. Late payments on rent, electricity bills, or loans can lead to hefty fines and penalties.
For example, a late bill of Ksh 500 from your utility provider might lead to an extra Ksh100 in charges. Furthermore, if you’ve taken a mobile loan, a late payment can severely damage your credit score, making it difficult to access credit in the future.
3. Impulse Shopping and Online Deals
The first week of the month often coincides with tempting online sales or promotions. While a deal might seem attractive, buying something you don't need is never a good deal. Resist the urge to make impulse purchases, whether it’s a new gadget advertised on social media or an outfit from an online store.
A good rule of thumb is to wait 24 hours before making a non-essential purchase. If you still want it the next day, it might be worth considering.
4. Lending Money Without a Plan
When you have cash, friends and family in need may come to you for help. While it's important to support your loved ones, lending money without a clear plan can put you in a tough spot.
Only lend what you can afford to lose and make sure it doesn't compromise your own financial stability. For example, if you lend out Ksh5,000 right after payday, that's Ksh 5,000 that can't cover your bus fare or groceries later in the month. It's often better to offer non-monetary support if you can.
5. Delaying Your Savings
A common and costly mistake is to save what's left over. The problem is, there's rarely anything left over. The most effective way to save is to pay yourself first.
The moment your salary hits your account, transfer a fixed amount (whether it's 10% or just Ksh 1,000) to a separate savings account, a Sacco, or a Money Market Fund. This ensures your savings grow consistently, regardless of your spending habits for the rest of the month.
Final Thought
The first week sets the tone for your entire month. If you overspend, delay bills, and neglect savings, the next three weeks will feel like punishment.
But if you pay essentials early, save before spending, and control lifestyle temptations, your salary stretches further — and so does your peace of mind.
Remember: it’s not how much you earn, it’s how you handle the first week that decides how far your salary takes you.
CONCEPT CORNER
Equated Monthly Installment (EMI)
EMI is a fixed payment amount made by a borrower to a lender on a specified date each month. The EMI payment is used to pay off both the interest and the principal (the original loan amount) over a set period of time. Read more.
Money Tips & Career Advice
MONEY254 #MONEYTOK
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11 Kenyan banks risk losing their licenses if they fail to raise Ksh3 billion each in minimum capital by December, as required under new CBK rules. Collectively, the lenders must raise Ksh15 billion in the next four months.
The affected banks include Paramount, ABC, Credit Bank, UBA Kenya, Access Bank Kenya and others. CBK says the new requirement will strengthen the sector, with minimum capital set to rise further to Ksh10 billion by 2029.
@money254hq 𝟏𝟏 𝐁𝐚𝐧𝐤𝐬 𝐑𝐢𝐬𝐤 𝐂𝐥𝐨𝐬𝐮𝐫𝐞 𝐎𝐯𝐞𝐫 𝐅𝐚𝐢𝐥𝐮𝐫𝐞 𝐭𝐨 𝐌𝐞𝐞𝐭 𝐂𝐁𝐊’𝐬 𝐂𝐚𝐬𝐡 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞 11 Kenyan banks risk losing their licenses if they fail to raise Ksh3 billi... See more
That's it for this edition of Wallet Wellness. We hope these financial tips have added some energy to your hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week, and watch out for Money Weekly in your inbox this Friday.
Also, don’t forget to download the Money254 App on the Google Play Store, and remember that we can help you compare over 300 loans, savings accounts, current accounts, and more if you’re thinking about your next product.
Cheers to your wallet's well-being!
Money254 editorial team.
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