Greetings, and welcome to the 41st 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 5 quick money moves to make the day you’re paid. This week, we shift gears to why you're always broke by week two of payday & how to break the cycle

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 Week Two of Pay Day & How to Break the Cycle

It’s week two after payday. Your salary hit your account just the other day, but somehow, you’re already calculating how to stretch the remaining few shillings to the end of the month.

You’re not alone. On many occasions, some salaried Kenyans often run out of money before mid-month despite earning decent incomes. So why does this happen, month after month?

Let’s break it down.

1. The “Payday High” Effect

When your salary lands, your brain releases dopamine — that “feel good” hormone. Suddenly, everything feels affordable. You’re treating friends, buying that outfit you’ve been eyeing, or saying yes to every plan.

The problem? This rush fades fast, leaving you with commitments that eat into your essentials later.

Fix: Give yourself 48 hours before making any non-essential purchases. Let the excitement pass, then decide if it’s still worth it.

2. Front-Loading All Expenses

Many Kenyans rush to clear everything on payday — rent, school fees, loans, groceries, family requests — leaving nothing for mid or end-of-the-month needs. It feels responsible at first… until you realize you didn’t budget for transport, airtime, or emergencies.

Fix: Spread your budget into weekly allocations. Think of your salary in four parts — one per week. This helps you avoid exhausting all funds in the first 10 days.

3. Lifestyle Upgrades

Every salary increment brings an “upgrade”: a better apartment, more takeouts, maybe a new phone. But if your spending grows as fast as your income, you’ll never feel progress.

Fix: Lock in a savings percentage before lifestyle upgrades. If you get a raise, let at least 30% of that increase go directly into savings or investment.

4. Black Tax and Peer Pressure

We love helping family and friends — it’s part of our culture. But when you’re everyone’s emergency fund, your finances take the hit. Likewise, that “it’s just one night out” with colleagues quickly adds up.

Fix: Set a clear monthly limit for support or social spending — and communicate it early. It’s not selfish; it’s sustainable generosity.

5. No Real Financial Plan

In some cases, some people may not have an actual plan — just bills and vibes. Without a system, money slips through your fingers quietly.

Fix:

• Create a zero-based budget — give every shilling a job before it leaves your account.

• Automate savings through standing orders or apps.

• Review your spending weekly — even 10 minutes makes a difference.

The Bottom Line

Being broke by week two isn’t about how much you earn — it’s about how intentionally you manage it.

Break the cycle by turning payday from a spending spree into a planning day. When your money has direction, you’ll notice something remarkable — peace of mind that lasts the whole month.

CONCEPT CORNER

Diversification

Diversification is the process of spreading your money across various assets to reduce the risk of losing all your money if one investment goes under. If, for instance, you keep all your savings in one SACCO and, due to poor management, the SACCO fails, you will instantly lose all your money. But if you spread your savings across different savings accounts, SACCOs, MMFs, and bonds, you will limit losses if one fails. Read more. 

Money Tips & Career Advice

MONEY254 #MONEYTOK

The Real Story About Surveillance in Kenya

Many people point fingers at telecommunication companies whenever cases of state surveillance against civilians arise, accusing them of sharing private data.

But did you know that government surveillance doesn’t depend on telcos, and state agencies have long had ways of monitoring communication, with or without court orders? Here are some precautions you can take to protect yourself from secret state surveillance.

@money254hq

𝐓𝐡𝐞 𝐑𝐞𝐚𝐥 𝐒𝐭𝐨𝐫𝐲 𝐀𝐛𝐨𝐮𝐭 𝐒𝐮𝐫𝐯𝐞𝐢𝐥𝐚𝐧𝐜𝐞 𝐢𝐧 𝐊𝐞𝐧𝐲𝐚 Many people point fingers at telecommunication companies whenever cases of state surveillance ag... 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.