Losing My Job Was the Hardest Lesson I Learned How to Budget [Money & Me]

When you lose your job, you go through all the emotional stages similar to grief, from denial, anger, blame, and finally acceptance. Still, somewhere through all that is depression, self-pity, deflection of responsibility, and lack of motivation to do anything meaningful.

According to research, job loss often results in a detrimental impact on mental health. A study found that unemployed people are more distressed, less satisfied with their lives, and more likely to experience mental health issues than the employed. 

It’s a rough and emotional type of loss that can leave you feeling stressed, hopeless, and unsure of what to do next. 

Here’s My Story

I graduated from the University of Nairobi with a degree in Information Technology. This was one of those marketable courses everyone talks about. And as fate would have it, I landed a job not too long after that. It was a solid position at a well-known company with a comfortable salary of Ksh95,000.

I still remember the excitement I felt landing such a job. Fresh out of school, I was eager to apply what I'd learned and make my mark in the professional world. I threw myself into the role, eager to learn and grow.

I was the envy of many of my peers, some who were still job-hunting, and others stuck in poorly paying gigs. I was lucky, and life was good. Or so I thought at the time.

From Star Employee to Unemployed

One afternoon, I was called into a meeting and informed that, due to financial constraints, the company had to let me go.

We had seen some signs that the company wasn’t doing as well, and the management had informed us that they had lost some big international funding, which made things a little tight for them, and that they would be cutting costs by letting some people go. However, call it arrogance or stupidity, I never thought I’d be among those the company was planning to let go. You see, I was very good at my job.

I had sacrificed so much for that role. Late evenings became normal, and early mornings were expected. There were days I carried work home, staying up past midnight just to meet tight deadlines—because some assignments were too important to wait. I delivered results consistently. My name was always somewhere on the monthly performance board. I made sure of it. And it wasn’t just me who noticed—my bosses did too. They told me often how much they valued me, how much of an asset I was to the team. So no, not even for a second did I think I’d be on the chopping block. If anything, I had a slight hope that I’d get a promotion. It was about time.

Instead, I was handed a severance package and asked to return company property.

I walked out of the office in a daze, the reality of unemployment sinking in.

The following weeks were a blur of emotions—shock, fear, and uncertainty. I found it hard to leave the house, overwhelmed by the sudden loss and the daunting prospect of starting over.

What Comes Next

As days turned into weeks, the initial shock gave way to a pressing concern: finances. Without a steady income, my savings began to dwindle. I quickly realized how financially irresponsible I was and that I hadn't planned for such an abrupt change.

For months, I kept getting regret emails from job applications and interviews I had attended. I felt like a failure. Also, seeing my friends prospering in their careers was very discouraging. I now knew what it felt like.

I had to learn to believe in my capabilities, education, skills, experience, and especially my ability to adapt. 

I worked like crazy and tried to build my own startup. I did consulting to pay some bills, and I put some expenses on hold. It all fell apart. Expenses didn’t stop, and the startup never worked either. “OK, what should I be doing?” I asked myself with a whole load of frustration.

No one would ever have convinced me that I could earn money outside of employment. I always believed in formal employment, and doing freelancing gigs just didn’t make sense to me.

But I was in a bad place and going down really fast.

Losing my job opened me up to seeing what other things I could do to earn money outside of employment.

I had to put my skills to use in the freelancing world—and surprisingly, it wasn’t all that bad. I started picking up small gigs here and there, projects that made use of what I already knew. The pay wasn’t as fancy as what I was getting in employment, not even close, but it was something. I had to make do. And because the money coming in had reduced drastically, I knew I had to change how I was spending.

That’s when the idea of budgeting started making sense to me.

I had to track every shilling, prioritize needs over wants, and figure out how to stretch my money to last the month. I had to learn how to create a budget—and more importantly, how to stick to it. Otherwise, I’d end up in a much worse situation than just losing my job.

Budgeting Helped Me Get My Finances in Order

Because my income had taken a serious hit, I knew I had to stop spending like I still had a salary. I had no choice but to become intentional with every coin.

Here’s how I slowly got control of my finances:

• Wrote down my must-pay expenses

I started with the basics. Rent, food, transport, airtime, and whatever I absolutely couldn't live without. These are your non-negotiables. They go first on your list and should always be covered before anything else.

• Cut out the “nice but not urgent” stuff

Netflix, new clothes, snacks, random takeout, and weekend treats had to go. Not forever, but just until I could comfortably afford them again. I paused all subscriptions and focused on home-cooked meals. You’d be surprised how much you can save by just telling yourself “not now” to the small stuff.

• Set a weekly spending limit

Instead of looking at my money monthly, I divided it into weeks. It helped me avoid blowing everything in the first few days. I’d ask myself, “Is this worth part of this week’s budget?” That one question saved me more than I care to admit.

• Tracked every coin

Yes, every single one. I started writing down what I spent, no matter how small. It made me more aware of where my money was going and helped me spot what I could reduce or eliminate completely. I still can’t believe I once spent money on a glow-in-the-dark water bottle. Seriously, why does my drinking water need to glow in the dark?

• Delayed gratification

If I saw something I liked, I didn’t buy it right away. I’d give myself a few days. Most of the time, the urge passed. And if it didn’t, I’d save up for it slowly. Impulse buying is an ugly monster on your finances.

Don’t Underestimate How Fast Things Can Change

I never imagined I’d lose my job in such a way. In my mind, that was something that happened to people nearing retirement or ‘low-level’ workers, not someone who held such a good position in a good company.

But life humbled me fast.

But it taught me to always pray, hope, and work for the best, but move like things could change the next minute. Always be financially aware. Don’t wait for a crisis to start thinking about where your money goes. Build an emergency fund when times are good. Track your spending now. Create a budget that makes room for savings, even if it’s just a small amount every month.

Also, ask yourself regularly: “If I lost my income today, how long could I survive with what I have?” That question alone can push you to make smarter financial choices.