Chachanomics Money Talks

Reader's Question My name is Mary. I have debts which have spiraled out of control. I have a Sh. 1 million loan that I took at a micro finance institution to buy my personal use car. Informally, I have three debts of Sh. 200,000. Sh. 100,000 which I took from my sacco, Sh. 60,000 which I took from a shylock, and Sh. 40,000 which I took from four different mobile lenders. Every month, I get Sh. 100,000 pay in my bank account from my job. Out of this amount, I am deducted Sh. 30,700 as monthly repayment for the Sh. 1 million loan. I am also deducted Sh. 6,300 for the Sacco loan. I am however not repaying the shylock and two of the three mobile loans because my budget is full. The budget is as follows. 1.       Rent: Sh. 30,000 2.       Food: Sh. 9,000 3.       Vehicle fuel: Sh. 10,000 4.       Entertainment: Sh. 8,000 5.       Electricity and water: Sh...

Reader's Question Help! My name is Ford. I am a single career man aged 30. I have no debts which am looking to financial freedom. My monthly salary is Sh100,000. Out of this amount, I have budgeted as follows. 1. Rent: Sh 22,000 2. Food: Sh 6,000 3. Vehicle fuel: Sh10,000 4. Entertainment: Sh 4,000 5. Electricity: Sh 2,000 6. Black tax: Sh 15,000 5. Loan payment: Sh 5,000 From this am left with Sh 36,000 to invest. I would like to stop working and have my money pay me through passive investments within the next five years. How do I do this with my current income? Where should I trim my budget? Which investment vehicles should I invest in? Thank you. From your budget/spending plan and questions, I have observed the following: 1. It is highly commendable that as a single career man aged 30, you're not living a middle class lie characterised by being trapped in the shame of debt as many youngsters and professionals do nowadays as evidenced by the proliferat...

Personal Financial Question My name is Mary. I have debts which have spiraled out of control. I have a Sh. 1 million loan that I took at a micro finance institution to buy my personal use car. Informally, I have three debts of Sh. 200,000. Sh. 100,000 which I took from my sacco, Sh. 60,000 which I took from a shylock, and Sh. 40,000 which I took from four different mobile lenders. Every month, I get Sh. 100,000 pay in my bank account from my job. Out of this amount, I am deducted Sh. 30,700 as monthly repayment for the Sh. 1 million loan. I am also deducted Sh. 6,300 for the Sacco loan. I am however not repaying the shylock and two of the three mobile loans because my budget is full. The budget is as follows. Rent: Sh. 30,000 Food: Sh. 9,000 Vehicle fuel: Sh. 10,000 Entertainment: Sh. 8,000 Electricity and water: Sh. 2,000 Mother’s monthly stipend: Sh. 4,000 The Sh. 1 million loan has a duration of 48 months. I have so far repaid two years. The sacco loan has a duration of 24 months. I...