A Kenyan woman wrote: “My name is Tina. My monthly salary as a receptionist is KSh 45,000. Here is my monthly spending plan: KSh 7,000 for SACCO savings and loan repayment; KSh 11,000 for rent; KSh 5,000 for housekeeping; KSh 3,000 for my parents’ maintenance; KSh 2,000 for my husband’s pocket money (he’s a final-year university student); KSh 2,000 for my niece’s daily school fees and personal expenses; KSh 5,000 for household food and other expenses; KSh 2,000 for diapers and baby food for my one-year-old; KSh1,600 for water and electricity; KSh 2,000 for a shylock (I owe him interest on a loan of more than KSh10,000); and KSh 700 for my chama. In my current predicament, there is nothing I can save. I don’t have a side business, however, I have tried starting enterprises in the past but failed. I want to purchase property in Kitengela and construct a three-bedroom home for my family. I keep taking out loans, and by the fifth of every month, I hardly have any money left. Please help me manage my finances.”
A Kenyan woman in a dilemma sought advice. Image for illustration. Photo: Ekaterina Goncharova. Source: Getty Images Eric Muchoki, a personal finance expert and director at Customized Solutions Insurance Agency, shared insights on financial recovery and smart investment choices. Why you should establish a business/study Eric Muchoki, a personal finance expert, advised the lady to acquire new skills through higher education or professional training to secure a salary increase. “Leverage on your SACCO contribution to increase your earnings by investing in further studies to enhance your income growth,” Muchoki told TUKO.co.ke. He recommended that she could, alternatively, find a business to do, but must research to maximise profits. “An alternative way to enhance your income is to establish your business. For a business venture, you need to research.” How to ensure profitability in business Muchoki noted each business location has its unique needs. “Check what is not readily available in your preferred business locality and consider being the supplier of that service/goods,” he advised.
Eric Muchoki advised her to research before starting a business. Photo: Eric Muchoki. Source: Facebook He encouraged her to identify a service gap from providers of goods and services. “By filling that gap, you will be assured of a ready market since clients are always on the lookout for added benefits beyond the normal,” he concluded. Disclaimer: The advice in this article is general and not intended to influence readers’ decisions about solving financial challenges. Before making a financial decision, readers should always seek professional advice that considers their circumstances.
by Japhet Ruto
