More than half of people working in Nairobi earn less than Ksh 40, 000.It is estimated that 20 % of employees in various organizations in the city earn this amount. A good number of people find it difficult to save even a single coin when they find themselves in a specific salary bracket. They always imagine that the only people with a certificate to save are those who earn seven digits. There is no salary which is too little to save; it depends on one’s financial discipline.
A salary of Ksh 40,000 is good enough to save, contrary to the popular believe that it’s peanuts. I was at one time thinking aloud how a teacher who receive a monthly salary of Ksh30,000,manages to feed his family, pays rent, and do all the household shopping and ensure that he has something in the account. A research we conducted indicates that among Kenyans who earn small salaries, teachers are the most successful.This is particularly contributed by their good saving habits and the desire to be better each time.
What if you are living in Nairobi, earning Ksh40, 000 but you have never gotten a formula of saving even a single cent. Every month you receive your salary, you end up exhausting it within the first 15 days and on date 16 you are back to borrowing until you receive the next salary. This is a very bad habit and if you continue living this way, you won’t achieve anything in life.
If you find yourself earning Ksh40, 000 this is how you should spend in order to remain with enough money to save.
Ensure that you live in a house which you pay a monthly rent not exceeding Ksh6, 000.This will enable you remain with enough money to plan for other serious investment segments. If you are living in a house where you cough Ksh10, 000 every month, then you should consider moving out as soon as possible.
To make your life more interesting, make sure your monthly shopping does not exceed Ksh4, 000.I know you are imagining how on earth this can be possible. Speaking from experience, I know it’s possible, what you need to do is to avoid shopping in expensive place
Ensure that as you look for a house, don’t live where your daily fare to and from work is not more than Ksh200.What makes people in Nairobi not to save enough to realize their dreams is transport and accommodation. If you manage to reduce the proportion the two take from the total salary then you will be the happiest person on earth.
If transport takes Ksh4, 000, food Ksh4, 000, shopping Ksh 4,000 and accommodation Ksh 6, 000, you are able to remain with at least Ksh 12,000.If you subtract Ksh 2,000 then you shall remain with Ksh 10,000 to save for development. If you save this money for one year then you’ll have Ksh 120, 000, which is enough to do something meaningful.
When you earn such limited amount ensure that you avoid many activities that can waste your resources.