My name is Janet. I am 32 and a mother of two. I have been working for the county government and I earn a net salary of Sh45,000.
I have been in an abusive marriage for the last three years. My husband has been forcing me to give my money to him and for the sake of peace and to uphold my family, I have been complying.
I even have a Sh100,000 one-year loan that I took on his behalf. This loan has been taking Sh9,500, yet there is nothing to show for it.
I am now tired of the violence and abuse and I have decided to leave.
I am scared I might not be able to survive on my own with two kids.
I don’t know how to budget money as the household budget has always been under my husband.
I don’t have any savings and will be starting off with Sh36,500 pay. Please help me budget and start saving my money for the future of my children.
Stella Chepng’eno is a financial consultant at Eagle Tact Consultants Limited
Here is a sample budget that you should follow as you get started
|
Income |
Amount (Shs) |
Percentage |
|
Net Salary |
36,500 |
|
|
Expenses |
Amount |
|
|
Rent |
7,000 |
19% |
|
Electricity |
1,000 |
3% |
|
Water |
500 |
1% |
|
Shopping |
7,000 |
19% |
|
Transport |
3,000 |
8% |
|
School Fees (per month) |
5,000 |
14% |
|
Daily Expenses |
5,000 |
14% |
|
Total |
28,500 |
|
|
Savings/Investment |
5,000 |
14% |
|
Emergency Fund |
3,000 |
8% |
|
Surplus/Deficit |
– |
|
|
Budget Plan |
||
|
Housing |
19% |
|
|
Other expenses |
45% |
|
|
Fees |
14% |
|
|
Saving/Investment |
22% |
|
|
100% |
Starting all over again is quite challenging but not impossible. Manage greed and follow your financial plan and investment strategy and avoid peer pressure. Focus on the following:
Setting financial goals: These should be short-term, mid-term, and long-term. Have them written down with timelines and a plan on how to achieve them.
Track your expenses and stick to a realistic budget: Create a habit of checking on your finances on a daily basis. Adjust where necessary.
Create an emergency fund: This should be factored into your budget as illustrated in the sample budget. Have a list of what you consider as emergencies in your household.
Increase your income streams: How well do you use your time? Do a time audit. How can you monetize your talent, passion and skills?
Invest your savings: Saving alone will not help but saving and investing will help you create wealth. Do your own research, and where possible enroll in an investment masterclass and professional financial advisory to learn how to invest properly.
Use debt to create wealth: Leverage on debt to create wealth but ensure you minimise the risks involved.
Calculate and monitor your net worth: Every six months ensure that you check your net worth and see if there is a positive or negative trend. Make necessary changes when you see a negative trend. The rule of thumb is that for every 2 assets 1 liability (2:1 ratio).
Ensure you have a solid retirement plan: Check what plans your employer has and see if it will serve you in the future. There should a retirement investment strategy in place to ensure you retire comfortably. BY DAILY NATION