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#SolutionSaturday
"What matters is what you keep, not what you earn" 🧵
We look at two cases.
1️⃣ John earns 300K per month.
2️⃣ Mary earns 50K a month.
John spends as follows: Mortgage & Car Loan: 150K. He saves 50K monthly in an FD earning 8% interest annually.
>>2
"What matters is what you keep, not what you earn" 🧵
We look at two cases.
1️⃣ John earns 300K per month.
2️⃣ Mary earns 50K a month.
John spends as follows: Mortgage & Car Loan: 150K. He saves 50K monthly in an FD earning 8% interest annually.
>>2
Mary spends up to 30K & is able to save 20K monthly.
Is John saving more compared to Mary? NO!
He only saves 16% while Mary saves 40%
John is a busy professional (an insurance executive) & has no time to actively manage his money. He leaves it to a fund manager.
>>3
Is John saving more compared to Mary? NO!
He only saves 16% while Mary saves 40%
John is a busy professional (an insurance executive) & has no time to actively manage his money. He leaves it to a fund manager.
>>3
Mary pools her 20K with other 10 people in her group (chama). They raise 200K for 12 months (Ksh 2.4M) & invest in an events management company where they hire out tents, chairs & sound systems. They have bought their own truck.
They generate 600K profit in the first year.
>>4
They generate 600K profit in the first year.
>>4
#SolutionSaturday
Get Serious About Saving! 🧵
If you ever doubted the importance of saving, the #Covid19 pandemic made it clear just how necessary a financial cushion can be. Many people had trouble paying their bills since the pandemic began & couldn't build emergency...
>>2
Get Serious About Saving! 🧵
If you ever doubted the importance of saving, the #Covid19 pandemic made it clear just how necessary a financial cushion can be. Many people had trouble paying their bills since the pandemic began & couldn't build emergency...
>>2
...savings by mid this year. That’s why we should get serious about saving - even if you think you are already in a comfortable financial position.
@TheAbojani often encourages people to follow a 50-30-20 rule when dividing up their take-home pay, with 50% of your income...
>>3
@TheAbojani often encourages people to follow a 50-30-20 rule when dividing up their take-home pay, with 50% of your income...
>>3
...going towards living expenses like rent and groceries, 30% for recreation or entertainment, and 20% going into savings.
But for people who are just starting to save, jumping from zero to 20 can be a daunting task & sometimes an impossible fete.
>>4
But for people who are just starting to save, jumping from zero to 20 can be a daunting task & sometimes an impossible fete.
>>4
