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...

  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...