Living paycheck to paycheck? Here are tips to get off that roller coaster!

Living paycheck to paycheck means that most of one’s salary is consumed by everyday expenses, leaving little to no room for saving or investing.

This financial pattern leaves individuals vulnerable, as any disruption, like job loss or an emergency, can quickly spiral into a crisis.

Jackson Mwaniki, the Director of Fanikisha Microfinance, emphasizes the growing importance of income diversification in today’s uncertain economic environment. 

“That’s where real job security is,” he explains, noting that multiple income streams provide a critical safety net when one source fails.

He describes living paycheck to paycheck as “literally living at the brink of bankruptcy.” While many view a monthly salary as a mark of stability, Mwaniki warns that depending entirely on one income, whether from government or private employment, is a risky gamble in the current job market.

He challenges the common belief that diversifying income requires constant physical presence in each venture. On the contrary, effective income diversification, he says, involves creating systems that can run independently or integrating side projects into an existing daily routine.

For individuals with limited funds, Mwaniki recommends starting with opportunities that align with personal skills and schedules. 

“A fitness trainer could work as a club bouncer at night, an accountant might lecture part-time, and a stay-at-home parent could run a daycare from home. The key is leveraging what you already know,” he suggests. 

Mwaniki highlights Small and Medium Enterprises (SMEs) such as wines and spirits outlets, mobile phone accessory shops, consultancy services, and online gigs like content creation as some of the most accessible and profitable options for those already in full-time employment. 

“Digital platforms are especially viable for beginners since they typically require minimal capital to start,” he adds.

Despite the potential, Mwaniki notes that building multiple income streams comes with challenges. Many underestimate the long hours, discipline, and sacrifice required. 

He urges individuals to invest in business and entrepreneurship training to unlock new opportunities, but insists that mindset is the foundation for success. Quoting a well-known principle, Mwaniki believes that altering one’s attitude is key to transforming one's life.

He also encourages people not to let pride prevent them from exploring income opportunities or paying off debts, even in small amounts.

To get started, Mwaniki suggests taking one small but impactful step to learn entrepreneurial skills, engage with business-related content like books, podcasts, or seminars, and most importantly, act on that knowledge through consistent, intentional steps.