You might be thinking “I can’t save on KSH 50,000 a month.” Yes, you can! There are five easy things you can do to save 10% of your monthly salary. That’s KSH 5,000 in the bank every month and KSH 120,000 in one year. If you keep saving and start investing the dough, you’ll soon be a millionaire.
1. Find a high interest rate
Shop around for a bank deposit account that pays a high interest rate. The bank will be paying you to save. Let’s say your after-tax salary is KSH 35,000. A 5% interest rate means you end up with KSH 1,750 extra after one year. Read customer reviews of banks on PesaGuide.com to make sure you select the right financial partner who can help you save.
2. Eat at home
You want to live the most lavish lifestyle money can buy. Who doesn’t? But the cost of a dinner on the town in Nairobi… KSH 1,500. The cost of cooking the same meal at home… KSH 300. A night out with girlfriends is always fun, and it will be even more fun if you do it less. Keep the restaurant dinners for birthdays and celebrations.
3. Spend less money on airtime and communicating
We know you want to talk to your friends all the time, but spending your airtime without a plan is a weak plan. Putting 20 bobs or 50 bob airtime without subscribing to a plan makes you spend more. Currently one of the most affordable networks happens to be Airtel. They have an amazing data plan where you get bundles and free WhatsApp. Surely you can spare 50 shillings for free WhatsApp and bundles?
4. Cut your rent
For most of us, the biggest expense every month is rent. Experts say your rent shouldn’t be more than 30% of your income before tax. So if you’re making KSH 50,000, that means your rent should be KSH 15,000 maximum. If it’s more, then find a cheaper place to live or get another roommate temporarily until you can save a bit.
5. Stop lending money to friends and family
You probably agree with me that the worst people you can lend to are friends and family. Say no to those people who are always on your tail at the end of the month.Remember this quote from
Edward Albert: “Sometimes you have to be selfish to be selfless.” Refer your friends and family to PesaGuide.com so they can find a mobile lender and let you save in peace.
You may want to live life on edge and live day by day but at the end of it all you need to think about your future. Take time to think about your finances, don’t spend money like you will always have it and save because a job is not always permanent.