The No-Spend Challenge: 4 Steps to Growing Your Savings

Greetings, and welcome to the 35th 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 practical ways to cut junk expenses to build your wealth. This week, we shift gears to the no-spend challenge and how you can use it to grow your savings.

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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This week’s newsletter is brought to you by Umba Microfinance Bank. Umba is Kenya’s digital Microfinance Bank licensed by the Central Bank of Kenya. 𝐖𝐢𝐭𝐡 𝐔𝐦𝐛𝐚'𝐬 𝐋𝐨𝐠𝐛𝐨𝐨𝐤𝐋𝐨𝐚𝐧, 𝐲𝐨𝐮 𝐜𝐚𝐧 𝐚𝐜𝐜𝐞𝐬𝐬 𝐛𝐞𝐭𝐰𝐞𝐞𝐧 𝐊𝐬𝐡𝟏𝟎𝟎,𝟎𝟎𝟎 𝐚𝐧𝐝 𝐊𝐬𝐡𝟏.𝟕 𝐦𝐢𝐥𝐥𝐢𝐨𝐧 𝐚𝐭 𝐣𝐮𝐬𝐭 𝟑% 𝐢𝐧𝐭𝐞𝐫𝐞𝐬𝐭. Plus, you keep your car while using the funds to solve your financial needs.

MONEY254 TIP OF THE WEEK

The No-Spend Challenge: 4 Steps to Growing Your Savings

Feeling like your salary disappears the moment it hits your bank account? You’re not alone. Many Kenyans fall into the trap of small, habitual expenses that prevent them from making real financial progress. The good news is, a simple challenge can help you flip the script. The No-Spend Challenge is a powerful exercise where you voluntarily stop all non-essential spending for a set period. It’s not about suffering; it’s about becoming more mindful of your money and putting yourself back in control. Here’s how you can do it.

Step 1: Set Your Rules and Timeframe 

First, decide what "no-spend" means for you. This isn't about starving yourself or walking to work. It's about cutting the "wants" while keeping the "needs."

• Needs: Rent, bills, groceries, transport, school fees, and debt payments. These are non-negotiable.

• Wants: Eating out, buying snacks or sodas, new clothes, salon trips, movie tickets, or any impulse purchases. These are your targets.

Next, pick a timeframe. Starting with a short period, like one or two weeks, is more manageable and increases your chances of success. For example, you could decide not to buy any ready-made food or new clothes for the next 30 days.

Step 2: Prepare for the Challenge 

Success in a no-spend challenge is all about preparation. Without it, you'll be tempted to give up on day one.

• Stock up on essentials: Before your challenge begins, do a big grocery shopping trip. Buy what you need for meals and snacks for the entire period. This prevents you from having to pop into a shop later, where you might be tempted to buy something you don't need.

• Create a meal plan: Plan your meals for the week. This helps you stick to your grocery list and avoids the last-minute urge to order biryani or fried chicken from your local food joint.

• Look for free entertainment: Find free ways to pass the time. Instead of going to the movies, watch something on TV. Instead of going to a restaurant, invite friends over for a home-cooked meal. Go for a walk or read a book.

Step 3: Track Your Progress and Temptations 

Keeping a record is key. Use a simple notebook or a note on your phone to track your journey.

• Log your spending: At the end of each day, write down any money you spent and whether it was a "need" or a "want." This helps you stay accountable.

• Note your temptations: Write down every time you feel the urge to spend on something non-essential. Understanding your triggers, for example, a craving for a soda after a long day at work, is the first step to managing them in the future.

Step 4: Celebrate Your Savings and Plan the Next Move 

At the end of your challenge, you'll be able to see the results. The money you didn't spend is now money you can save.

• Transfer the cash: Immediately move the money you saved into a separate account. This could be a savings account, a money market fund, or a chama contribution.

• Reflect and learn: Look back at your notes from the challenge. What did you learn about your spending habits? What were your biggest temptations? This knowledge is your most valuable takeaway. It helps you make more conscious financial decisions going forward, ensuring that the habits you've built stick long after the challenge is over.

Final Thought
The No Spend Challenge isn’t about deprivation. It’s about hitting pause, spotting where your money leaks, and redirecting it toward your goals. Even if you save just Ksh5,000 in two weeks, that’s school shopping sorted, an emergency fund boosted, or part of an investment contribution.

CONCEPT CORNER

Centi-Millionaire

A centi-millionaire is a person whose net worth is at least 100 million dollars (Ksh12 billion). According to a report by Henley and Partners, there are 16 centi-millionaires in Kenya. Since 2023, the number of centi-millionaires in Kenya has not changed. Read on. 

Money Tips & Career Advice

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All The Taxes You Pay In A Day If You Earn Ksh80K

If you earn Ksh80,000 gross per month, you’ll pay about Ksh776 in taxes daily—that’s over Ksh23,000 monthly in PAYE and indirect taxes. After statutory deductions, your take-home is Ksh58,212, but everyday spending (rent, food, fuel, electricity, airtime) adds more hidden taxes.

In total, statutory deductions plus direct and indirect taxes push your monthly tax burden to around Ksh31,000. Here is the full breakdown.

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𝐀𝐥𝐥 𝐓𝐡𝐞 𝐓𝐚𝐱𝐞𝐬 𝐘𝐨𝐮 𝐏𝐚𝐲 𝐈𝐧 𝐀 𝐃𝐚𝐲 𝐈𝐟 𝐘𝐨𝐮 𝐄𝐚𝐫𝐧 𝐊𝐬𝐡𝟖𝟎𝐊 If you earn Ksh80,000 gross per month, you’ll pay about Ksh776 in taxes daily—that’s ove... See more

That's it for this week’s Wallet Wellness edition of 2025! We hope these financial tips have added some energy to your weekly hustle. Stay tuned for more practical insights in our next edition of "Wallet Wellness" next week, and watch out for Money Weekly.

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.