Count your shillings before they count themselves

When I started my boutique, I used to count money at the end of the day and guess what I had spent. Big mistake. I lost track of small daily costs like airtime, transport to buy stock, and even my own lunch money. Those little amounts add up fast, and at the end of the month, I could not explain where my profit went. My simple tip: write down every coin you spend in one day, even the 50-shilling bus fare or the 20-shilling sachet of milk. Use a small book or a free note on your phone. At the end of the week, add them up. This is called tracking your expenses - it just means knowing where your money goes. You do not need an app or fancy software. A pen and paper works fine. For example, when I bought 100 pieces of second-hand clothing for 8,000 shillings, I used to think my profit was the full amount I sold them for. But after tracking my daily costs for one month, I realised I was spending about 1,500 shillings on transport, airtime, and snacks just to run the business. So my real profit was 1,500 shillings less than I thought. That one habit saved me from making bad decisions and helped me price my items better.

Replies

Peter NjorogeOct 18

Yes, a simple spreadsheet like Google Sheets works well and you can see patterns after a few weeks. Just put the date and amount each day, then use sum at the end of the week, it’s free and easy.

Halima AbdiOct 18

This is such a good tip! I've seen so many small business owners in Mombasa lose money because they don't track these small daily costs. Even something as simple as the fare to go check prices at the market adds up. Keep it up sharing these practical tips - it really helps us beginners understand how to manage our own little businesses better.

Baraka MushiOct 18

This is a great lesson in systems. Pole sana for the early losses, but it's good you caught it early. Do you think moving these notes into a simple spreadsheet would help you see the patterns better over a few months?

Naomi WanjikuOct 18

I started doing exactly this when I began selling mandazi at the market, and honestly, it felt silly writing down 15 shillings for matatu fare every day. But after two weeks, I saw I was spending more on transport than I thought, so I switched to buying stock from a supplier closer to home. Now I'm saving at least 800 shillings a week just by walking to the next stall instead of taking a boda. A small exercise book works perfectly, no need for anything fancy.

Sharon AtienoOct 19

This is so true, even for us students. I started writing down my chapo and soda money for one week and nearly fell over when I saw the total. Asante for sharing, it really opens your eyes to those small coins we ignore.

Esther NyamburaOct 19

That's a solid point about spreadsheets, but I like what you said - even just a small exercise book works wonders at the start. Some people get scared off by tech and give up before they begin. As for you students, that chapo and soda habit hits hard for sure. Once you see those weekly totals, it's hard to ignore them.

AmaniOct 20

Thanks for sharing this, it's a lesson many of us learn the hard way. One thing I'd add: once you have a week or two of those small costs written down, try grouping them into categories like transport, food, and stock. That simple step often shows the biggest leaks at a glance.