Heri Unemployment, I'm Quitting, Yaani Salary Ya KSh 70k Imeisha, I Can Only Save 5k? Expert Advises

 

An upset African American girl 

Anonymous wrote: Bro, ata heri unemployment sasa, yaani salary yote ya KSh 70k imeisha, and I can only save KSh 5k? I am quitting this nonsense. (“Bro, I’d rather be unemployed now. I mean, my entire salary of KSh 70k is gone, and I can only save KSh 5k? I’m quitting this nonsense.”) In today’s economic climate, managing personal finances can be a daunting task, especially for salaried individuals who feel their hard-earned money is slipping through their fingers.  An upset African American girl is suffering, crying. Depression because of loneliness, stress, problems. Image for illustration. Photo credit: dragana991. Source: Getty Images A recent comment from a frustrated employee earning KSh 70,000 took to social media and highlighted this struggle, attracting sympathy and ridicule in equal measure.  The Kenyan expressed a deep sense of dissatisfaction, stating that despite earning a decent salary, he could only manage to save KSh 5,000 each month. This has led him to start considering quitting his job, which he now refers to as "nonsense". For sure, his sentiments resonate well with many Kenyans who are grappling with the high cost of living. Personal finance export Susan Mtana weighed in on the issue. Mtana provided practical insights that anyone can use to navigate financial challenges and maximise savings, even on a shoestring budget and fixed salary. Here is her response: "So, allow me to tell the person who has an issue with KSh 70,000: let him look around. There are so many people in Kenya who are earning even less than KSh 70,000. In finance, it's not about how much you make; you may make a lot, but if you don't know how to manage your money effectively, even if you earn KSh 100,000 or KSh 200,000, you'll still have the same issue of financial discipline. So, I’d encourage the person to first work on their financial discipline before anything else. What is the 50-30-20 rule in personal finance? We have the 50-30-20 rule, where you distribute your income: 50% to needs or must-haves, 30% to things that are good but not necessary, and 20% for savings and investments. So, let him take the KSh 70,000, divide it along these lines, and ensure that all the must-haves, including standing bills, are covered using 50% of that KSh 70,000. Then, as soon as he receives the money, allocate 20% to savings and investments, and 30% to other expenses. Let him start this plan in September and review his progress even six months later—he’ll likely be in a better place. The issue is that you have to live within whatever you have while trying to find other avenues to increase your income. When you're thinking of quitting, ask yourself: What is your plan if you can't manage the KSh 70,000? How else will you survive after quitting? What he needs is to be intentional about saving and to prioritise saving because, once you start spending without a plan, nothing will be left. He should prioritise saving and investing, then readjust his expenses accordingly: 30% for entertainment and luxuries and 50% of his salary on must-haves. Financial discipline is key Even if he earns a hundred thousand, he should look around at those who do non-salary jobs but still manage to pay school fees, rent, and save. It's about him taking charge of his discipline. Let him create a financial plan with clear targets: what he wants to save, invest in, or achieve.  He can use the 50-30-20 rule to work towards that project. Discipline isn’t easy; it requires sacrificing some luxuries to redirect money to essential areas first. Let him work on his discipline and mindset—everything is doable if you work with what you have in hand." Disclaimer: Advice given in this article is general and is not intended to influence readers' decisions about solving financial challenges. They should always seek their professional advice that takes into account their circumstances before making a financial decision. 

by  Muyela Roberto