I'm Paying for a Ksh200K Dubai Holiday Without Touching My Savings

I am spending my Christmas in Dubai! It’s my first time going outside of Africa. And the good thing is, I’m not spending a cent of my own money. Well, it's complicated. I'm sure you are already making assumptions about me. Do I have a sponsor? Is my family secretly rich? Do I earn a million shillings a month? The answer to all of that is a resounding no. 

I work as a nurse at a private hospital in Nairobi. My take-home is about Ksh130,000. I’m good with money, not because I’m a genius but because I’m always learning. Until recently, I was stuck in the same cycle of Christmas Sherehe that is common to many Kenyans. 

I use the 50/30/20 rule to budget my income- This is 50% of my salary goes to needs, 30 per cent to wants, and I save 20 per cent. Every year, I would take a small portion of my savings and direct it to the Christmas budget. It wasn’t a need, but it felt necessary. Yet I always felt guilty and some pain seeing my savings balance reduce as I enjoyed the festive season.

Also Read: Start Saving For Your Year-End Holiday Using These 6 Tips

A New Idea is Born

In December 2022, after my usual withdrawal, I decided I was done with the guilt. I spend roughly Ksh40,000 a month on my 'Wants'—the 30% kitty: dining out, occasional travel, and kujibamba with friends. I love travel, and I realized I needed a dedicated pot of money just for that guilt-free joy.

That’s how my 'Fun Fund' was born. I committed half of my Wants budget—Ksh20,000—to this new account every single month. I opened a separate Money Market Fund (MMF) account for it. 

The rule was simple: this money pays for travel and fun, and absolutely nothing else. By December 2023, with consistent contributions and an average return of around 14% on the MMF, the fund had grown to about Ksh280,000.

That Christmas, I spent about Ksh20,000 on my trip upcountry, and here’s the kicker: that money came entirely from the interest the fund had earned that year. I didn't touch my main savings. It was a beautiful, energetic feeling.

Also Read: Ways to Improve How You Save Money Before the Holidays

Small Small Sacrifices

I was motivated. I decided I wanted the fund to be fully self-sustaining—a pool of capital large enough that the interest alone could fund my biggest travel dreams, year after year. I continued topping up the Ksh20,000, and thanks to a few side gigs where I worked extra shifts, the portfolio hit Ksh500,000 by August 2024.

But then the returns kept falling. The MMF was clocking in below 12%. My main wealth was secure in low-risk savings, so I decided I could afford to take a slightly bigger calculated risk with my Fun Fund. I moved the entire portfolio into a regulated special investment fund known for higher potential returns but with a lock-in period. I locked mine for 16 months. 

My philosophy was clear: if it's just for fun, and my future is secure, why not make the fun money work harder?

Read Also: How to Create a Goal-Based Savings Plan 

Dubai Here I Come

Last year, I used my usual savings for the Christmas travel since I had locked the money. 16 months later, which was last week, my Fun Fund hit the Ksh1 million mark. 

When I do the math, the interest I have earned this year is Ksh196,000.

I immediately withdrew just that interest—the Ksh196,000. Not a single shilling of my usual savings was touched. Even the fun fund capital is all untouched. Yet I am spending my Christmas holidays in Dubai, 100% funded by the interest from my Fun Fund.

It is the most guilt-free, delicious expenditure I have ever made.

Looking ahead, if these returns remain consistent, I now have a minimum of Ksh200,000 guaranteed every festive season for travel, just from the interest. If I continue topping up my Ksh20,000 monthly, that figure will only grow.

I’ve already started eyeing my next big milestone: a Cruise Ship holiday for my 35th birthday, two years from now. I’ve done the projections, and yes—the interest alone will cover that, too.

The biggest lesson I learned? Separate your savings from your wants. Never let your joy borrow from your future. By giving my fun money its own job, I am able to enjoy my life to the fullest without ever stretching my wealth.