“I’m 24, Single Woman Earning KSh 40k, but Have No Savings Plan; How Do I Start?”: Expert Advises

 

Anonymous wrote: "I am a 24-year-old single woman and recently employed with a monthly net pay of KSh 40,000. My monthly house rent is KSh 10,000. Other expenses, including utilities, transport, and entertainment, amount to KSh 20,000 plus KSh 3,000 in support for my parents. I have been thinking about savings and investments, but I have not yet started any plans for the past two months of my employment. How do I start?"  An illustration image showing a lady in thoughts at the office. The 24-year-old sought advice on savings and investment.  Rufas Kamau is a financial expert, research & markets analyst and a senior contributor at Forbes. Where to start your investment? Speaking to TUKO.co.ke, financial expert Rufas Kamau advised the lady to first invest in herself, with the extra KSh 7,000 from her income. Kamau recommended the lady upgrade her education skills, which would help expand her income stream. "From the details provided, it seems that the lady has KSh 7,000 surplus income that can be saved or invested. I believe that the best investment is always to invest in oneself. "My advice would be for her to look for ways to invest in herself, such as getting an extra education, skill, or gig. This would help in increasing her income in the near term, therefore leading to a higher ability to save more," Kamau explained.  How to start your investment plan Kamau suggested setting up an investment plan and an investment goal, either short-term or long-term. "Calculate how many years or months it will take. If the surplus income cannot help achieve that goal in the needed time, then invest in increasing the income first," he noted. Asked about the best savings vehicle that could help raise income for extra skill learning, he advised researching the skill upgrade you want. "It really depends on his skill. Some careers can be upskilled through online courses others through job switching, others through local institutions. The costs vary, he said. Disclaimer: Advice given in this article is general in nature and is not intended to influence readers' decisions about solving financial challenges. They should always seek their own professional advice that takes into account their own personal circumstances before making a financial decision.

by  Wycliffe Musalia with expert  Rufas Kamau