How Unmarried Man Earning KSh 45k Monthly Can Save, Invest to Create Wealth

 

A single man in deep thoughts 

It is the end of the month, and perhaps your salary has hit your bank account. Illustration image of a man thinking about his monthly spending. According to experts, this is the period when many people get confused about their financial goals and obligations.  For unmarried and single, it is the time you'll get to 'entertain your boys' if you have no plans and goals to achieve with your money. However, there is an easy step to take to ensure you pay yourself before spending the whole money. Why you need 50/30/20 budget rule In an exclusive interview with TUKO.co.ke, Engagement Lead at Abojani Investments Benjamin Cheruiyot noted that planning your money will ensure you achieve your goal of financial freedom. Cheruiyot recommended using a 50/30/20 budget rule, especially if you are single and unmarried, to manage your spending, savings and investments. "The 50/30/20 budget rule enforces disciplined spending. You get to know how much you want spend, pay debts, save and invest," said Cheruiyot.  He explained that the 50/30/20 budget rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. How Kenyan unmarried men can save using 50/20/30 rule In a tweet he posted on his X platform account, Cheruiyot advised unmarried civil servants earning KSh 45,000 per month to utilise the rule. He divided the salary into 50% for basic needs, 30% for wants and debt repayments, and 20% for savings and investments. The financial expert allocated KSh 9,000 to savings and investments; KSh 4,000 to SACCO deposits, and KSh 5,000 to money market fund(MMF). Why save in Sacco and Money Market Fund He recommended saving the money in Sacco deposits, which will earn interest and allow you to take cheaper SACCO loans, four times your deposits. SACCOs like Tower Sacco, which draws members from both the public and private sectors with a minimum monthly deposit of KSh 500, pay dividends of up to 20%.  Others, like Hazina and Stima Sacco, with a minimum monthly contribution of KSh 1,000, pay dividends at a rate of 17% and 15%, respectively. "The MMF earns daily interest and will help you meet short to medium-term goals like acquiring skills for higher income, business startup," he advised.

by  Wycliffe Musalia