"I’m a Form 4 Leaver, I Received KSh 460k Inheritance, What Should I Do?": Expert Advises

 

A Kenyan man wrote: "My grandmother passed away recently, and we are just from a family gathering where her inheritance was being split, and to my surprise, my share was KSh 460k. I am 23 years old, and the highest salary I have ever received is KSh 12k. I don’t have a job. I am a kienyeji male, and I know nothing about forex or money market funds. I have never started any business and I am not really good with financial discipline. I now have money that I don’t know what to do with. Please advise before I buy a motorbike because here in Kisii owning a bike is a big thing. I also did not go for any further education after high school. Any advice would really be appreciated."  A young man in a dilemma. Image for illustration. Why you must take time to reflect Setting up an emergency fund and financial education Explore investment options Starts a business/consider further education Man earning KSh 850k always broke, seeks advice + View more Walter Tarus is the founder and managing partner, WealthWise Financial Consulting Ltd. Why you must take time to reflect In an exclusive interview with TUKO.co.ke, Walter Tarus, the founder and managing partner of WealthWise Financial Consulting Ltd, noted that receiving a significant sum of money unexpectedly can be overwhelming, especially if one is unsure how to manage it. He urged the man from Kisii to take some time to reflect before making a decision. "Before making any decisions, take some time to reflect on your goals and priorities. Consider what you want to achieve in the short term and long term. This will help guide your financial decisions," Tarus said. Setting up an emergency fund and financial education The financial consultant said it's important to set some money aside for emergencies, such as 10-20% in a savings account as an emergency fund.  He said this would provide a financial safety net in case of unexpected expenses. "Since you mentioned not having much knowledge about investing or financial discipline, consider using a portion of your inheritance to educate yourself. You can find resources online, such as personal finance books, articles, or courses, that can help you learn about managing money, investing, and budgeting." Explore investment options Tarus listed several investment options the 23-year-old could explore. Among the options were government securities such as treasury bills, bonds, and money market funds. "Treasury bills offer an attractive annual yield of around 16.5%, while many money market funds yield returns ranging from 10-12% annually. These investments provide a balance of security and returns, making them appealing choices for those seeking stable growth," he explained. Starts a business/consider further education Tarus opined it's important to research and plan carefully before jumping into entrepreneurship. In this case, the Kisii man should consider his interests, skills, and market opportunities when deciding on a business idea.  "Given your current educational background, investing in your personal development could significantly enhance your future earning potential. Exploring educational opportunities, such as vocational training programmes. They can provide you with practical skills aligned with your interests and career aspirations," he concluded. Tarus can be reached on 0738 386 363. 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  Japhet Ruto