10 Money Habits of Financially Stable People

Last Updated on May 17, 2026 2:26 am by Maxwell Aliang’ana

Stability Is a Set of Behaviours, Not a Salary

Financial stability is what most Kenyans envision when they think of it: a big paycheck, a bountiful bank account or an inheritance. Walk into any estate in Nairobi and you will find individuals who have Ksh 150,000 per month income, but spend the entire month without enough money to take care of their basic needs, while others with Ksh 40,000 monthly income own land, run side businesses and sleep in peace at night. It is not income that is the difference. It is habit. However, financially stable people have in common certain types of behavior that are not based on luck, but on discipline. Anyone can learn these habits, repeat them, and they’re remarkably easy. This article examines 10 particular money habits that make the difference between those who are doing well and those who aren’t, and provides a few examples of each one for Kenyan earners of all income levels.

Habit One: They Know Exactly Where Their Money Goes

Well off financially, never guess their expenditure. It is not because they feel threatened, but because they value their own work, they keep an eye on every single shilling. The average Kenyan who is not a money tracker borrows KSh 5, 000 from an ATM, pays KSh 300 for fare, spends KSh 500 for a lunch and KSh 200 for a soft drink and when it gets evening time, he says to himself “Where did the money go”. The stable person, on the other hand, employs a plain notebook, an excel spreadsheet and even the M-Pesa statement to classify each and every bit of spending. They don’t have to do this for all their lives. The big leaks typically can be spotted after three months of careful monitoring. If you are aware that you are spending Kshs 3500.00 monthly on airtime which you don’t use and another Kshs 2000 monthly on delivery fees, you can make a conscious decision to stop. Ignorance is expensive. Knowledge is a budget budget.

Habit Two: They Pay Themselves First, Not Last

Kenyan earners make the most common financial mistake of saving what’s left after paying. There is no natural limit to spending and so nothing can ever be left. This equation is reversed by financially stable people. When they get paid they put a certain amount of their take-home pay into a savings account or money market fund before paying their rent or buying their food, before sending money home, etc. This is referred to as ‘paying yourself first’. If a person’s salary is KSh 50,000 and is saving 20 per cent of it, he will be moving KSh 10,000 immediately to a stable person. They then have the remaining Ksh 40,000 to live on. The constraint helps to make better spending decisions. After three months the brain adapts. You no longer feel bad and begin to feel like you have control. It’s all about automation. Make a regular transfer to a savings wallet, using a standing order from your bank or a regular M-Pesa transfer. Where there’s no money there you won’t miss it.

Habit Three: They Distinguish Between an Emergency and an Inconvenience

Those who are financially stable have an emergency fund and even more important, they have a clear idea of what is an emergency. A real emergency is a situation that poses a risk to your life and/or livelihood. Admission to the medical hospital, a huge repair job on your car that you can’t do without getting to work, or a sudden eviction notice. All other things are inconveniences. It could be a friend’s big day or a sibling’s school trip, a discount TV sale or an upgrade to the phone. The stable person does not dip into his/her emergency fund for mishaps. Having discovered that a small cause will produce a large effect, they are getting ready to break the rule for a larger cause. This practice is even more essential in Kenya where emergencies such as funerals, and sudden illnesses are frequent. Safeguard your emergency fund. Let it be in another account that is separate from your M-Pesa or Debit card. Make it difficult to gain access to. The higher the barrier for spending, the more you will be inclined to not spend it for a real emergency.

Habit Four: They Use Debt as a Tool, Not a Lifestyle

Debt is not evil. Debt must not be indulged; it is bad. People who have enough money do not borrow unless the assets they are buying will appreciate or produce income, or for something that is an absolute necessity, and has a definite plan for repayment. They don’t take out a loan for a wedding, a vacation or a designer purse. Digital lenders such as Fuliza, Zenka and Tala have taken the art of borrowing in Kenya to dangerous proportions, with a loan for Ksh 500 now easily obtainable to settle lunch bills, and loans of Ksh 3,000, obtainable on a whim to go out for a night out. The stable person doesn’t want to have anything to do with this. They will borrow money for a home, to buy an used vehicle to become a taxi, or to buy a small business stock. They work out the total amount that they will need to pay back on the loan, including the interest and all the fees before signing on to it. They don’t borrow money to pay back a different loan, either. That’s the start of a vicious cycle which has ensnared thousands of Kenyan families. The stable person asks himself one question: do I need something or do I want something if I don’t have the money to afford it. If it’s a want, you’re given the opportunity to wait and save it. If it’s a need, you are able to find the most inexpensive means of financing it.

Habit Five: They Live Below Their Means, Not Within Them

It’s a lie to be living within your means. If your income is KSh 60,000 and your expenditure is KSh 60,000, you are on the verge of trouble! The well-off have a very small lifestyle. They build up a margin between their income and their expenditure and they maintain that margin with zealous dedication. This is not to say that they live in poverty. It is a conscious decision to make choices, that many of their peers would consider embarrassing. The stable person with a monthly income of KSh 150,000 could be driving a second-hand Toyota Vitz at KSh 300,000 while another with an income of KSh 80,000 is paying KSh 1.5 million for a Volkswagen Polo. The stable one is living in a modest two-bedroom apartment in a safe but unfashionable neighbourhood, while a peer stays in a luxurious apartment in Kilimani.

Habit Six: They Automate Their Finances

If one is financially stable, he does not need to remember or be motivated. They automate everything. On the day that paychecks are deposited, money is automatically channeled to the savings, investment and bills accounts. So the only account that you can easily access for spending is the wants account, which only has a relatively small amount of money in it. Automation is becoming more accessible than in Kenya. Recurring withdrawals can be made using a savings wallet or automatic funds transfers to a money market fund (MMF) e.g. Mali or CBA Loop.Standing orders may be arranged through the bank; recurring M-Pesa withdrawals to savings wallet or automatic funds transfers to a money market fund (MMF) e.g. Mali, CBA Loop. Stable individuals also make their bill payments automated. Schedules include rent, electric, water, Internet and black tax (a flat fee). All is on paper. As a result, they never see late fees, never miss an investment opportunity and never have to wonder where their money went. This system works for them when they are asleep.

Habit Seven: They Have a Spending Plan for Their Wants

People who are well-off enjoy their money, even though some people think that they don’t. They just make a plan for it. The stable person sets aside a definite percentage, say 10 to 15 per cent of his income for pure wants. They spend money that doesn’t make them feel guilty. It can be used for a night out, new clothes, a weekend getaway to Naivasha or a gift for Mom. The simple rule is that once the want money is depleted, no more want till next month. This helps to curb the habit of many Kenyans of spending money on wants at spur of the moment and later feeling remorseful of doing so. The stable person lets the budget explicitly allocate to the wants and takes the place of shame. They don’t take money out of their rent or savings and spend it on a whim. This is how and why financial stability is sustainable.

Habit Eight: They Regularly Review and Renegotiate Expenses

Loyalty to service providers is only to those who are financially stable. They check all their recurrent costs at least on a half-yearly basis. A stable person will call their provider and request that they get a better deal. They will switch from postpaid to prepaid if it will save some amount of money. They will stop subscriptions after 30 days if not used. Many households in Kenya sign up for Netflix, Showmax and Spotify at the same time, but don’t use it all. The stable person is a ruthless auditor of such costs. They also re-negotiate higher prices. When their lease is about to expire they could relocate to a more affordable apartment. They may switch their shopping for food from a mall to an open market. When you break down the small amounts of money saved, such as Ksh 500 saved at one place and Ksh 1,000 saved at another, you end up with Ksh 12,000 or more in savings per year.

Habit Nine: They Surround Themselves With Financially Conscious People

Habits are contagious. The financially savvy know that your social group is influential on your financial future. If the people you come into contact with always need to borrow money, buy status symbols and promote outing spending, you will have trouble saving. The stable person doesn’t sever ties with old friends, but they purposely find relationships with others who have similar values. They are not the members of consumption chamas, rather they are the members of investment chamas. They are registered for financial literacy courses. Also they listen to Kenyan personal finance content online. They openly communicate with peers about saving, investing and budgeting. This is not an attitude of superiority. It is self-preservation. Your friends know that you are not eating out for Ksh. 3,000 and do not push you. They respect you. Your habits do for you and their habits do for you, over time. If you are unable to locate such people in your circle you can find them online.

Habit Ten: They Define What Financial Stability Means to Them

The last of the habits of Money-Making People is the most neglected. They have a personal, specific and written definition for stability. To someone else, that number may be 12 months of expenses. To another person, it may be 18 months of expenses. For one, that could be having a little land in their own county. Third, it could imply that the Fuliza is completely paid, even if it means that there is no balance left. People who are stable take clear, measurable goals. They put it in writing. for example, ”In December I will save Ksh 100,000. I will pay my Sacco loan in 8 months. I will make an investment of KSh 5,000 in a Treasury bond monthly”. They celebrate and set another target when they reach for a target. This clarity reduces the stress about money and turns it into a vehicle for specific goals in life. You cannot manage what you have not defined. Make time for yourself today for 15 minutes. Put into words what financial stability means to your family. Be honest. Be specific. Then reverse plan to behaviors you need each day to get there.

Conclusion: Habits Compound Over Time

These 10 habits are not sensational in any way. Monitoring expenses, making paying yourself first a priority, planning for emergencies, using debt responsibly, and paying less than usual, automating finances, prioritizing wants, negotiating bills, being careful with friends, and writing down goals. It may sound like such a trivial thing, one habit at a time. However, it is not a one heroic act that creates financial stability. It is created from simple yet constant and unspectacular daily decisions made over a number of years. Choose one of the habits and do it for 30 days. Then add another. Your finances will be vastly different and changed in just a year. One of those folks you’ll be, who people will wonder – how do they cope with money so calmly? Now you will know the answer.