If you are earning Ksh 120,000, you are in a bracket where you can save enough money to jumpstart your wealth generation journey. Let’s assume that you are in Nairobi, below is the breakdown on how to spend the salary:
Ksh 15,000 to Ksh25,000 —Rent
Ksh 15,000—Shopping
Ksh 15,000—food and clothing
Other bills(electricity,water,internet etc)—Ksh 10,000
Loan repayment and miscellaneous expenses—Ksh 15,000
Total amount spent is Ksh 65,000 to Ksh75,000. You will remain with Ksh 45,000 to Ksh55,000 to save and invest.
The best way to save is open Money Market Fund and invest Ksh 10,000 to Ksh30,000 monthly. You will also open a Sacco account and invest Ksh 10,000 to Ksh 20,000 per month. Buying shares will be the ideal option because you will be earning dividends every year. The dividends are 13% to 185 of your shares. MMF will also pay 11% to 18% interest.
One thing you should control is the rent you pay. Make sure that your rent does not exceed Ksh 30,000. Once you control that, avoid being generous to friends and family members. Give money where necessary. You should also avoid gambling and women—those things might consume all your income.
