“I Earn KSh 35k But Left With KSh 100 After Expenses, I Need Help”: Expert Advises

• A 27-year-old Kenyan man who earns KSh 35,000 sought advice on how to manage his expenses as he's left with just KSh 100 after deducting all expenses
• The man broke down his monthly expenses, including allocations to rent, his girlfriend and siblings who depend on him
• Personal finance expert Eric Muchoki advised him to start saving little amounts by cutting on some non-essential items

A 27-year-old Kenyan man named Brian wrote:

" My name is Brian. I am a 27-year-old man in a relationship earning a KSh 35,000 net salary monthly. My expenditure is as follows: Food KSh 4,000, rent for one bedroom house KSh 13,000, mum and siblings KSh 5,000, girlfriend KSh 4,000, mobile loans KSh 4,000, fare KSh 3,500, water and garbage KSh 900. I remain with just KSh 100. I was employed a year ago, and I have not saved any money yet. I now survive on mobile loans after paying all the expenses. I feel overburdened by my family and girlfriend’s demands as they think I earn a lot of money. I lack the motivation to continue working. What should I do? Please help me."

Eric Muchoki is a personal finance expert and director at Customized Solutions Insurance Agency.

Why you should start saving

In an exclusive interview with TUKO.co.ke, Eric Muchoki, a personal finance expert, advised Brian to save at least 10% of his monthly salary before spending it on basic items.

He advised the 27-year-old to invest the money in a Money Market Fund (MMF) or save in a sacco or a bank-locked savings account.

"What you need is a resolve to do things differently. Purpose to save before you spend. Start by saving 10% of your earnings by channelling to a savings account religiously without fail. If you opt to save in a bank account, avoid applying for a debit card to make it difficult to access the savings on impulse. A sacco or a Money Market Fund account is even better for saving and earning more. By the end of the sixth month, you will have developed a saving habit," Muchoki explained.

Why you should cut your expenditure

Muchoki advised Brian to streamline his expenditure by getting rid of unnecessary expenses.

He noted that he should boost his savings kitty with the remaining money after cutting down on non-essential items.

"Consider changing your hood if need be to reduce your rental payment. Whatever remains after reducing expenses can boost your savings kitty. After a year, your savings will motivate you to work harder to continue boosting your savings for future investments," he added.

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.

Do you have a story to tell? Want an expert's advice? Please email us at askanexpert@tuko.co.ke with 'Ask an expert' in the subject line.

Retired teacher seeks pension advice

In related news, a 61-year-old retired teacher sought advice on how to spend a lump sum pension of KSh 2.5 million he got from the government.

The man revealed that he built his retirement home, and his children had completed their education except for one who is in university.

Muchoki advised him to invest the entire amount in a Money Market Fund (MMF).

Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke

Man United Flops Set To Join Brazilian Clubs After Months As Free Agents
Nakuru Boda Boda Man Returns Home From Work, Finds His House Destroyed By Fire
Kenyan Man Who Died In Dubai After Being Allegedly Tortured Buried: "Hard To Believe He Is Gone"

A worried man ponders his next financial move.

EARN KSH 100 EVERYTIME YOU CHARGE YOUR PHONE | make money online - YouTube

EARN KSH 100 EVERY MINUTE WATCHING VIDEOS ON YOUR PHONE | make money