Greetings, and welcome to 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 the tips to help you keep up your routine savings without falling behind. This week, we shift gears to help you avoid lifestyle creep and ensure your financial stability grows with every pay rise you get.

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 Your Salary Might Feel Bigger Than It Actually Is

When my friend Brian’s salary doubled, he thought life would change overnight. For years, he’d been grinding in entry-level roles, just getting by. The day he got his big promotion, we all celebrated — beers, nyama choma, bold talk about finally buying that car he’d always wanted.

But a few months later, when I asked him how life felt with a bigger paycheck, his answer surprised me. “Honestly, I still feel broke,” he said.

Sound familiar? It happens to more people than you think — that strange feeling where your salary gets bigger, but somehow your bank balance doesn’t. You’re earning more, but the struggle feels exactly the same.

That’s Lifestyle Creep at work.

It’s what happens when your income rises, but so do your expenses — quietly, gradually, and often without you noticing. You start spending a little more here, upgrading a little there. Before long, your lifestyle has expanded to match your income, and your financial situation feels stuck on repeat.

It’s subtle:
✅ A nicer phone because “you deserve it.”
✅ More dinners out, spontaneous weekend plans.
✅ Upgraded clothes, gadgets, and subscriptions.
✅ Maybe a new car or a move to a pricier neighbourhood.

None of these things are wrong. But when they all happen together, without a plan, your salary increase gets swallowed whole. You’ve worked hard, your payslip has grown — yet the pressure, the stress, the constant worry about money? Still there.

Why the Salary Jump Doesn’t Always Feel Like Progress

We tell ourselves that more money will fix everything. But with every raise comes new expectations — from ourselves, from family, even from society. Suddenly, there’s pressure to “show success.” To live like someone earning more.

In Kenya, many also face extra financial obligations as salaries rise — black tax, school fees, and emergencies. Combine that with the worsening economy, peer pressure, and easy loans, and it’s easy to see how even a decent salary can feel like it’s not enough.

Breaking the Cycle

So, how do you make sure your salary increase actually improves your financial life?

Start by flipping the script. Treat a pay rise as an opportunity, not an invitation to spend more.

💡 Automate your good habits first. Before you adjust your lifestyle, adjust your savings, your emergency fund, and your investments.

💡 Upgrade selectively. Want to treat yourself? Pick one meaningful thing, not ten impulsive ones.

💡 Track the numbers that matter. A bigger salary feels good, but real progress shows in your savings rate, reduced debt, and growing investments.

💡 Expect hidden expenses. Promotions, new jobs, and even higher salaries often come with extra costs — transport, housing, work clothes, and social expectations. Don’t let them sneak up on you.

Brian learnt this the hard way. That first big salary bump disappeared as fast as it came. But with time, he shifted his approach — saved more, spent intentionally, resisted the temptation to upgrade everything at once.

The next time your salary grows, ask yourself: Am I building more freedom, or just more expenses?

It’s your income. Make sure it works for your future, not just your lifestyle today.

CONCEPT CORNER

Lifestyle Inflation

Lifestyle inflation is a phrase used to describe an individual's increase in expenditure as their income increases, such that what was formerly considered a luxury becomes a necessity. 

Here’s an example - a fresh graduate gets a new job and lives in a one-roomed bedsitter in an Eastlands estate in Nairobi for Ksh10,000 rent. After six months, the graduate is promoted, gets a salary bump, and chooses to move into a one-bedroom apartment at what’s considered an exclusive neighbourhood. This added expense in rent (because the graduate wants to and is not out of need) is referred to as lifestyle inflation. Read More.

Money Tips & Career Advice

MONEY254 #MONEYTOK

What Happens to the Personal Documents You Leave at the Cyber? (e.g. ID & Payslip)

How do you protect yourself from identity fraud? A woman was preparing to board a plane at JKIA when she was pulled aside and told she couldn’t leave the country. Why? Because she reportedly owed the government millions in unpaid taxes — from a company she didn’t even know existed.

Across Kenya, innocent people are being caught up in a growing wave of identity fraud. Scammers are opening fake companies, claiming VAT refunds, importing goods, and even applying for loans — all using stolen personal information.

@money254hq

𝐖𝐡𝐚𝐭 𝐇𝐚𝐩𝐩𝐞𝐧𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐬 𝐘𝐨𝐮 𝐋𝐞𝐚𝐯𝐞 𝐚𝐭 𝐭𝐡𝐞 𝐂𝐲𝐛𝐞𝐫_ (𝐄.𝐠 𝐈𝐃 & 𝐏𝐚𝐲𝐬𝐥𝐢𝐩) #money254 #trendingvideo #moneytip #moneymanagement #fyp... 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.