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...

  Chachanomics Money Talks: Financial Tips for Millennials Though the habit of saving and investing is key in mastering your money, there is a worrying concern about Millennials (who comprise the youthful population) with no savings or investments to talk about. This is a pointer to a devastating underlying personal financial problem which calls for urgent redress. 3 Critical Questions 1. What does the term Millennials imply? 2. What are some of the common traits of this demographic group? 3. What kind of financial tips best suits this group? 1. What does the term Millennials mean? Various definitions have been advanced about this demographic cohort or youthful group. Some sources indicate that Millennials comprise people who were born in early 1980s and early 2000s (meaning people currently in their 20s and 30s). This categorisation omits those born later on. Generally, Millennials can be conceptualized the youth ranging from 18 to 35 years. This classification makes it easier to ...

 Saving Versus Investment: How Similar or Different Are They? Although the habit of saving is crucial in mastering your money and attaining financial freedom, many people either take it for granted or don't know how to save (if the messages from employees and owners of SMEs unable to save I've been receiving are anything to go by). With the proliferation of digital money lending apps, it has become easier to borrow money than to save. The lack of a saving plan and inability to save cash are common personal financial problems. The statistics about Kenya's poor saving culture and habit of borrowing for consumption point to a bigger financial problem. In July, 2021, financial analysis by EFG Hermes showed that Kenyans are among the poorest savers in East Africa at a rate of 12% below the continent's average of 17%. Many people retire without a robust safety nest or reliable passive income from income generating assets.  Causes of poor saving culture 1. Consumer driven cult...