Chachanomics Money Talks

  Reader's Question "My name is Bob. I earn a net salary of Sh70,987 after statutory deductions. My deductions and expenses include: Sacco deduction Sh8,000 (Sh5,000 back office and Sh3,000 front office). Education policy of Sh6,000, car loan of Sh23,000 (Sh16,000 principal and Sh7,000 interest. Loan balance stands at Sh600,000) parents and siblings minimum monthly Sh10,000, TV subscription Sh2,800, household shopping Sh15,000, group contribution Sh2,000, car fuel Sh4,000. Sometimes, I feel pushed and end up using the Sh3,000 front office. In fact, right now, I have nothing in the front office account. I am only lucky I don't pay rent and utility fees because I live in company premises. I would wish to vacate one day. What can I do to have my won home? I have always loved to invest in the money market, how, how can I identify a profitable one?" Response A close examination of your financial breakdown reveals that your total expenses is Shs.70,800. This implies t

  Reader’s Question "My name is Johnstone. I'm 43 and a civil servant working in Nairobi earning a gross pay of Sh225,000. But I have not been able to save good money. I have become a slave to bank loans, I have tried some business but it fails, though I have invested. I leave in my own house worth Shs7.5 million inclusive of plot, I have another plot worth Sh3.5M within Nairobi metropolis which I want to dispose to settle loans to increase my net in order to enable me save more, and land worth Sh1.7 million where I do farming (maize and beans). My headache is 1. Bank loan balance Sh3.7 million paying Sh96,000 a month, 2. Saving Sacco loan paying Sh34,000 a month, 3. Sacco loan Sh35,000 paying Sh9,000 per month. Saving Sacco Sh700,000 at Sh5,000 per month, education insurance Sh5,000 per month, NSSF Sh1,000 per month. Expenditure on rent zero, travelling/fuel Sh15,000, house shopping Sh15,000, electricity Sh2,500, airtime/data Sh3,000, TV subscriptions Sh1,200, entertainment