The ruthless cycle of living hand-to-mouth has left many Kenyans penniless even when they have salary.

Regardless of how much money they earn, they end up in a position where they remain broke and unable to set up savings because their income ends up consumed by some expense or other.

Here are 5 main reasons for that.

1. Debt trap

People get caught up by small loans, using credit cards for emergencies or even bank loans. They ask for loans the qualify for but are unable to payback.

2. Overdue bills

Due to being in a state of cashlessness, people end up being unable to foot their bills and so end up racking up even more debt with the penalties and interest rates.

3. Lack of advice

Not getting accurate, unbiased knowledge and advice, people fail to feel empowered and confident in their personal finance decisions.

4. Lack of knowledge about personal finance

According to experts, most people are broke because they don’t learn about personal finance. They don't know how to use their money to gain financial freedom in the future.

5. Incorrect finances

This is the instance where people don't use cheaper or more affordable and long lasting ways to do things. They overspend where it's not necessary and fail to invest in what could give them a better future.