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If your monthly salary in Kenya is Ksh 60,000, how much money should you save? Yesterday we were discussing this question with my friends, we brainstormed and came up with an answer. One of my friends said Ksh 10,000 per month, another one Ksh 20,000 per month. I said Ksh 15,000 per month. Based on logic, below were our findings.
The amount of money to save will depend on where you live. Assuming that you will be living in Nairobi, below will be your expenses:
Total income —Ksh 60,000
Rent—Ksh 15,000
Food and Shopping—Ksh 20,000
Transport—Ksh 10,000
Other bills and miscellaneous expenses—Ksh 5,000
Total expenses=Ksh 50,000
Balance=Ksh 10,000
You will be saving Ksh 10,000 every month in Nairobi if you live within your means.
In other small towns, you will save Ksh 15,000 to Ksh 30,000 monthly based on the rent you’ll be paying.
If you own your house in Nairobi, you will save Ksh 15,000 to Ksh 20,000 per month.
Where to save your money and earn high returns
Save in Fixed deposit account, Money Market Fund and Saccos.You will earn returns of up to 18% per year.
If you save Ksh 120,000 in a year,Money Market Fund will yield Ksh 12,000 to Ksh 18,000.If you buy shares in a Sacco,you will earn Ksh 15,000 to Ksh 25,000 per year.
Another way of saving the money is through Safaricom Lock Account which pays interest of 6% per year.
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