If you are earning a monthly salary of Ksh 20k in Nairobi, rent you should pay is Ksh 3,000 to Ksh 4,000. The maximum rent should be Ksh 5,000 per month. If It exceeds Ksh 5,000 then you are living beyond your means.
Ksh 3,000 to Ksh 4,000 is either a bedsitter or single room. A good and specious single room will cost Ksh 4,000 in Pipeline Nairobi.
Assuming that your monthly rent is Ksh 4,000, you will remain with Ksh 16,000. Subtract Ksh 13,000 for transport, food and other bills, you will remain with Ksh 3,000. There are miscellaneous expenses which will consume Ksh 2,000. Ideally, the amount of money you’ll remain with is Ksh 1,000 only. This money should go into your savings.
One of the best ways to save money in Kenya is through Money Market. You can also join a Sacco and save monthly or open a fixed deposit account.
Saving consistently for 1 year, your total savings will be Ksh 12,000. This is enough to start a small business.
Ksh 20k is not enough to feed a large family in Nairobi, it’s not enough to sustain expensive lifestyle. It’s also not enough to buy alcohol daily. For you to progress, you have to avoid those three things that I have mentioned.
The best places to get a good house for Ksh 3k to Ksh 4k in Nairobi include:Kayole,Pipeline,Kitengela,Githurai,Ngong and Rongai.
