💸 Why You’re Always Broke by Mid-Month – And How to Fix It

Greetings, and welcome to the tenth edition of Wallet Wellness in 2025 - your midweek source of practical personal finance tips to elevate your money management skills.

We hope you had a chance to check out the last edition where we ventured into the role of tech in personal finance and the apps and tools you need in 2025. In today’s edition, we discuss some of the reasons you are always broke by mid-month and practical tips on how to fix it.

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! 

MONEY254 TIP OF THE WEEK

💸 Why You’re Always Broke by Mid-Month – And How to Fix It

Mid-month is here. You check your account balance, and it’s worryingly low. Where did all your money go? You do a quick mental audit—rent is paid, a few bills here and there, some shopping… nothing extravagant. Yet somehow, you’re back to counting coins and hoping the days fly by to the next paycheck.

Sound familiar? You’re not alone.

Many of us start the month with the best intentions, but somehow, halfway through, the struggle kicks in. Small financial habits, overlooked expenses, and unconscious spending add up—before you know it, mid-month feels like a financial crisis.

Suddenly, you’re borrowing, cutting back on essentials, or anxiously waiting for payday. But it doesn’t have to be this way.

Today, let’s break down why this keeps happening—and, more importantly, how to break the cycle so you stay financially steady all month long.  Let’s get to it.

1️.  Lack of a Spending Plan 📝

Without a budget, it’s easy to spend money freely, only to realize later that you’ve stretched yourself too thin. A well-structured plan helps you stay on track and ensures your money lasts the entire month.

• Why It Matters: A budget gives your money direction, preventing unnecessary stress and financial shortfalls.

• Common Challenge: Many people rely on mental tracking, but small, frequent expenses add up quickly.

• What to Do: Use budgeting apps like M-Pesa App, Chumz, or Money Manager to automate tracking and stay in control. Read More.

2️. Underestimating Small Expenses 💸

Daily spending habits like that mid-morning snack or frequent eatouts may seem insignificant, but over time, they take a serious toll on your finances.

• Why It Matters: These seemingly minor expenses accumulate, leaving little room for essential costs later in the month.

• Example: Spending Ksh 300 daily on takeout adds up to Ksh 9,000 per month—money that could be put to better use.

• What to Do: Track small expenses for a week. Identify areas to cut back and redirect those funds toward savings or investments. Read More.

3️. Overlooking Mid-Month Expenses 🏠

Some costs—like rent and loan repayments—are accounted for at the start of the month. However, others, like internet bills, school fees, or Sacco contributions, may surface later, leading to financial strain.

• Why It Matters: Without planning for staggered expenses, mid-month feels like a financial squeeze.

• Example: You may have paid rent but forgotten about the power bill, leading to last-minute adjustments.

• What to Do: Automate your payments to help you organize your bills better even those that you may pop up later in the month. 

4️. Depending on Future Income 🤞

Many people justify spending today based on expected earnings tomorrow. But relying on commissions, bonuses, or anticipated payments can be risky if those funds don’t arrive on time.

• Why It Matters: Spending ahead of your income often leads to overreliance on overdrafts, salary advances, or mobile loans.

• Common Pitfall: Using short-term credit like Fuliza or borrowing with the assumption that “next month will be better.”

• What to Do: Consider following the 50/30/20 rule—allocate 50% to needs, 30% to lifestyle, and 20% to savings and investments to ensure sustainability. Read More.

5️. Lack of an Emergency Fund 🚨

Unexpected expenses—like a medical bill, car repair, or urgent travel—can throw off your entire budget if you don’t have savings in place.

• Why It Matters: Emergency expenses often lead to borrowing, which can create long-term financial setbacks.

• Example: Instead of dipping into monthly cash flow, an emergency fund provides a safety net for unexpected costs.

• What to Do: Start small. Consider a Money Market Fund to build a financial cushion over time. Read More.

6. Relying on One Source of Income 💰

Relying solely on your salary means you’re financially vulnerable if unexpected expenses arise. A side source of income can provide much-needed financial relief.

• Why It Matters: A salary alone may not be enough to sustain rising expenses, making it crucial to have alternative income sources.

• Example: Selling digital products, investing in dividend-paying assets, or earning from a side hustle can supplement your main income.

• What to Do: Explore passive income options like Sacco dividends, unit trusts, or I-REITs to boost your cash flow. Read More.

Being broke by mid-month isn’t always about how much you earn—it’s about how well you manage what you have. By making small but intentional changes, you can create financial stability and avoid the stress of running out of money too soon.

CONCEPT CORNER

Cash Flow

Cash flow refers to the movement of money in and out of your finances—essentially, your income versus your expenses. A positive cash flow means you’re bringing in more than you’re spending, which allows for saving and investing. A negative cash flow indicates your expenses exceed your income, leading to financial strain.

In short, managing cash flow well ensures you’re not just making money but also keeping and growing it. Learn More.

From a High Flying Businessman to a Boda Rider on Thika Road: Peter’s Money Story

“...He woke up to find his home emptied—his expensive photography equipment and other valuables gone. That single incident threw him into a financial crisis. All his wealth had been tied up in his equipment and lifestyle. With no savings, passive income, or financial backup, he found himself with nothing…Read On.

MONEY254 #MONEYTOK

WhatsApp Link Alert: How Kenyans Are Getting Conned in Seconds

Perhaps you have come across or heard about fake money promotions making rounds on WhatsApp groups or even on personal chats and texts. Just recently, one of our readers fell victim to this scam and shared her story to serve as a warning to us.  In this week's MoneyTok, we talk more about this  WhatsApp link scam and how to avoid it. Watch the video and dive into the details in this article!

@money254hq

𝐇𝐨𝐰 𝐊𝐞𝐧𝐲𝐚𝐧𝐬 𝐀𝐫𝐞 𝐋𝐨𝐬𝐢𝐧𝐠 𝐌𝐨𝐧𝐞𝐲 𝐓𝐡𝐫𝐨𝐮𝐠𝐡 𝐖𝐡𝐚𝐭𝐬𝐀𝐩𝐩 𝐇𝐚𝐜𝐤𝐢𝐧𝐠 𝐂𝐨𝐧 WhatsApp scams are on the rise in Kenya—fraudsters send links promising job opp... See more

That's it for the tenth 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.