Chachanomics Money Talks

  Reader's Question My name is Naomi. I'm 44. I take home Sh.100,000 after deductions. My budget is as follows: Wi-fi: Sh.3,000 Netflix: Sh.1,100 Post-paid line: Sh.1,000 Fuel: Sh.12,000 Food: Sh.15,000 Domestic cleaner: Sh.4,000 per month (she comes once a week) Car loan: Sh.45,000 (exactly a year to clear) Sacco savings: Sh.5,000 monthly Sacco saving: Sh.750,000 Personal savings bank account: Sh.120,000 Spouse support: Sh.25,000 monthly plus family home, school fees and service charge catered for Miscellaneous: Sh.10,000 In case I left employment today, I'd have about Sh.450,000 at my disposal. What investment plan can I make at this time in my life? Can I buy land to put up a holiday home that I can rent out? Chachanomics Financial Advice At age 44, you are remaining with 16 years before you reach the mandatory retirement age of 60 years if you are a civil servant. This means that you have reached a critical age bracket (40-50 years) which is usually known as the stage o...

I Save Sh.500 Net Daily from My Boda Boda Job. Help Me Invest to Acquire Assets Hello, My name is Ben. I am single. I am a boda boda rider based in Migori Town. On average, I save 500 bob a day after my daily expenses. I also earn 6400 bob every month from transporting school children. I use 6000bob to pay chama every month as merry go round, and the chama offers table banking loan 3X your shares. Currently my shares stand at 12000 bob. I am also currently installing a vertical vegetable garden on a 50X50 plot I have leased to help boost my income. And I have a debt of 20,000 bob. Kindly guide me on how to plan and invest the money I make so as to achieve financial stability, assets, and business capital in the next 10 to 20 years. RESPONSE On a positive note, your saving habit (putting aside Sh.500 daily) is admirable and will go along way in helping you achieve your financial goals over time. Equally, the idea of starting an income generating enterprise is progressive and t...

  I Earn a Net Pay of Sh.180,000 but I'm Always Broke and Taking Loans I earn a net pay of Sh.180,000 net but I'm always broke. My monthly expenses are as follows: Rent 44,000 Car loan 21,010 which need to repay in 20 months. Travelling 10,000 Electricity 6,000 Household Shopping 20,000 Water 2,000 I also send some upkeep cash for my parents in the village. Problem is; I have never managed to save anything however much I try. Recent, I found myself borrowing mobile loans that currently stands at 20,000. What do I need to do to attain prudent financial management and stop struggling despite earning a decent salary? How do I start saving? How do I redefine my budget? Please help. Chachanomics Financial Advice From the above financial situation, I have observed the following. 1. The breakdown of expenses is incomplete because it totals to Sh.103,010 yet your net pay is Sh.180,000 which means that about Sh.77,000 is unaccounted for. Suppose you spend S...

Reader's Question Published in Saturday Nation 23 rd April, 2022 "I live in Ngong and work at the Nairobi Central Business District. I earn a monthly salary of Sh. 40,000. I have a family of 3. I want to be saving about Sh. 10,000 monthly. However, I am currently unable to do so as my expenses often outweigh the money I earn. My rent is Sh. 13,000. I use Sh. 6,500 on bus fare. Food takes about Sh. 12,000 at Sh. 400 per day. I use Sh. 2,000 for home entertainment and Sh. 2,500 for power and water. I send home Sh. 3,000 and give my spouse the remaining Sh. 1,000 for personal use. In between, there are times when I hive off cash from my budgets to meet my personal expenses such as weekend entertainment. How can I rearrange my budget so that I start saving Sh. 10,000 every month? My aim is to build up Sh. 1 million for my family’s land or home ownership." Answer to Question of the Month To rearrange your budget in order to achieve your financial goals, the following is...

  How to Survive on a Sh. 26,000 Salary as a Newly Employed TSC Teacher "Anthony is a newly employed teacher. He has a new job with the Teachers Service Commission. His starting salary is a basic of Sh. 26,000. This is his first job and his first formal salary. He has been posted in Eldoret. He is single and without a child. He wonders; how should he budget this salary? What amount should go to what budget allocation? What amount should he save? Between a Sh. 500,000 car and a Sh. 500,000 plot of land, which should he aim to acquire within two years? How much should he save for this? Where should he save?" First, congratulations on securing a job as a TSC teacher. Being young perhaps in 20s, employed, single and without a child is a plus in laying a firm foundation for a financially prosperous future. Second, one major challenge you are face as a newly employed youngster is lack of financial literacy skills* such as budgeting, debt management, saving and investing. That...

 Help! I Earn Sh.60,000 Monthly but Spend all the Money on Relatives and Girlfriend Hello! My name is Wafula. I graduated recently from KMTC and have a practice license from NCK. I am not formerly employed but been working for sometime on locum basis even before I had completed my education. I make up to Ksh.2000 daily but can’t save any money. I pay Kshs.11,200 house rent, Ksh.1500 DSTV, Ksh.3,000 cousins rent (university student), cousin’s fee Ksh.5,000 monthly (short course at ICS) and her transport and lunch upto Ksh.3000, Ksh.food 6500. My girlfriend moved in recently and so I support her sister who schools nearby with some food and personal effects Ksh.2500 monthly, house wifi Ksh.1,000, miscellaneous upto Ksh.6000. The family thinks I get too much money and so the financial requests keep inflating. I am forced to work day and night so as to meet the costs. I hardly save anything. I am struggling to do farming back at home at our disputed family land. Kindly assist becaus...