Financial freedom is not only limited to the ultra-rich, as even with a 30K salary the same is achievable with a little bit of discipline and smart investment options.
Prioritizing on how to slice that pie to various needs is always a tough cookie to crack but there is a proven formula to achieve that.
The formula that works is spending 7K on rent, food (4K), shopping (3K), fare (5K), and 7K on personal expenses, which leaves you with Kshs 4,000 for saving.
After all the basic needs have been met, instead of stuffing the remaining cash under the mattress, you should figure out how to turn your savings into an investment.
Here are four best streams you can assuredly put your money into.
Money Markets
What’s a money market? Money market basically refers to a section of the financial market where financial instruments with high liquidity and short-term maturities are traded. It consists of negotiable instruments such as treasury bills, commercial papers and certificates of deposit.
You have to look at the best banks or insurance companies that guarantee high-interest rates. Currently, more than 15 companies have this investment option in Kenya.
Grabbing that plot, legally
It may sound taxing but no matter how young you are, investing in a plot is the best decision you can ever make for your future.
First, while all other goods depreciate in value, land can only appreciate and second, at the end of the years-long contribution, the plot will give you an option to build your own home and liberate you from the chains of having to constantly pay rent.
With as little as Kshs 7,000 deposit every month in slightly over three years, you should be able to get the ownership of a plot big enough to put up a sizeable residential property. No rent, no fuss.
For instance, a prime plot measuring 50 by 100 in peripheral towns of Nairobi search as Athi River Township and Joska costs between Kshs 280,000 and Ksh400,000.
You can, however, get much cheaper plots in towns outside of Nairobi such as in Gilgil, Nakuru with prices starting from Kshs 200,000.
Boss up with a business
Looking for a better way to generate an alternative revenue stream? Starting a business is the best option there is.
This ranges somewhere from a basic needs store such as that selling clothes, groceries or household items to a luxury shop that people come to have a good time while getting services in return.
The most common business ideas include opening a barber shop, a salon, a fast food eatery, a poultry farm or offering unique services that impact the lives of a customer.
Take poultry farming for instance, with Kshs 7,000, you can acquire 14 (2-month-old) chicken at 500 each for rearing. Upon maturity one hen has a capability to produce 280 eggs per year with each retailing for Kshs 10 and Kshs 15 and you can also sell the others for meat for Kshs 1,000.
All it takes for a business to really kick off is to determine the goods or services the public is calling for and coming up with innovative ways to fill that void.
Getting finances is also essential in the realization of the business.
Stack your academic papers
Once in employment, you may wonder ‘why do I need to go back to school?’
But for a mind that is constantly striving to be the best in an evolving world, knowledge is only limited to the boundaries you set for yourself.
That qualification could give the extra zing to earn that promotion which translates to more money. It could be an MBA and there are universities that offer such courses online. A two-week training could also help you in being a master in your field. Take the chances up and open greater doors for yourself.
Most advisable courses to pursue further are those rich in business skills such as Business Management (Available in both local and international universities) since it equips you with additional knowledge to secure a promotion. The skills can also come in handy when you leave to run a business solo. Such courses are available at institutions such as Kenya Institute of Management (KIM) and Strathmore Business School.
For programmers, certification in state of the art systems gives one a competitive edge. Take the Networks training offered at the University of Nairobi, for example, where you will learn basic configuration and maintenance of small to medium-sized networks.
The one month course costs Kshs 25,000 and it has flexible time for classes which is from 4pm-8pm daily.
Education is power and there is no better way to invest in yourself than seeking the empowerment.
In some instances, good opportunities, such as a good offer on a piece of land you have been eying or an impossible to reject business opportunity, float around before you rack up enough savings.
Not having money should not be a deterrent especially when you can easily go for a salary advance using your MCo-op Cash app from Co-op Bank and take up that opportunity as soon as it appears.
How the service works is, you can apply for amount upto Ksh 200,000 with a flexible repayment plan of up to a three-month instalments period.
You also have the luxury of getting the loan instantly with an interest rate of 8% that is deducted from your loan before the deposit is made.
So take the challenge and pursue your dreams. Learn More about the MCoopCash Salary loan here.
