How to manage Ksh 40,000 salary in Kenya


If your monthly salary in Kenya is Ksh 40,000, you won’t live like a millionaire, come up with a way to manage this salary to avoid living in debts.

We are assuming that your net pay is Ksh 40,000. In this case, the first thing to do is to know how much to spend on rent, food, clothing, education and other expenses.

Many people would apply the 50-30-20 rule where they save 50% of the income, use 30% to pay the essential bills and 20% for other expenses. However, it may not be the case all the time. Some people have more dependents and responsibilities than others.

If you are single with zero responsibilities, here is how to spend Ksh 40,000

Ksh 8,000 rent

Ksh 6,000 transport

Ksh 15,000 shopping and food

Ksh 4,000 miscellaneous expenses

Total spent Ksh 33,000

You will remain with Ksh 7,000 every month.

Join a Sacco and save Ksh 3,000 monthly. In one year, you will save Ksh 36,000.

Saccos will pay dividends of 10% to 14%.With Ksh 36,000 savings, you will earn dividend of Ksh 4,000 in your first year.If you save Ksh 36,000 for 5 years, the total savings will be Ksh 120,000.This will enable you take a loan and buy a plot.

After saving Ksh 3,000 in a Sacco,you will remain with Ksh 4,000.Open a Unit Trust account and start saving Ksh 1,000 monthly. In one year, your account will have at least Ksh 12,000.

The Ksh 2,000 will remain in your salary account.

For those with large families. You will be forced to rent a bigger house where you pay rent of Ksh 9,000 to Ksh 12,000. Your savings will be less.

With a large family, you may not even save money because you will also be paying school fees and also paying for medical bills.

For you to maximize your savings, you have to avoid destructive habits like having many girlfriends, living beyond your means, alcohol and gambling. You should also avoid buying a car. The Ksh 40,000 is not enough to sustain your car with fuel.


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