5 Best Saving Tips If You Earn Between 15-50K In Kenya

5 Best Saving Tips If You Earn Between 15-50K In Kenya

By Lilian Wamaitha

Anyone will tell you that the secret to wealth is learning how to save your money. This is why, by instinct, the first thing that comes to mind when you get a source of income is it a job or a small business, is saving.

A friend of mine let’s call her; Sharon recently got a job where she is being paid 15K being an entry level position. Like many other people out there she has learned how to survive on her small salary and at the same time have something extra to save.

Peter on the other hand, has three years of experience and is lucky to be earning a salary of 50K every month. However, unlike Sharon, Peter has never been able to account for his money. Most of it is spent on friends and house rent since he lives in a 25K a month apartment in a leafy suburb in Nairobi.

Without a good savings plan, you will never be able to account for your money. This is why I am going to highlight the best saving tips if you earn a salary of between 15-50K.

The Best Saving Tips If You Earn Between 15-50K No One Tells You

Before we dig deeper into this topic read here on 7 Things You Should Do to Be Rich in Your 30s.

Throughout the years, I have learned the most important lesson in life. Saving is the ultimate way you can safeguard your future. Here are the saving tips if you earn between 15-50K that you should know.

1. Investing in a small business

Saving doesn’t necessarily mean stacking up all your money in a bank and watching it grow annually. You can save by investing in a viable business. See also the 9 Profitable Small Business Ideas In Kenya For 2017.

Think about it, instead of impulse buying every time you get a salary, why don’t you take that money and invest it in a small business that can bring you profits.

Must Read >>> 8 Profitable Businesses You Can Start With As Low As 5-10K

2. Always live within your means

You are young and you want to live the most lavish lifestyle money can buy forgetting that life hasn’t begun yet. If you are in a similar situation like that of Peter where your rent is half of you salary, you are not doing yourself or your future generation any favor.

There are so many affordable places you can get decent housing without having to stretch your salary too much.

3. Saving Tips If You Earn Between 15-50K – Get into a chama

While in the past these chamas were mainly women business, more men are coming on board too. If you contribute 2K at the beginning of the month, you can watch that money grow as you continue contributing.

Most chamas nowadays allow you to take a loan depending on what you have contributed. There are also chamas that come together and invest in things like real estate and other profitable businesses.

4. Open a savings account

If you are not comfortable with chamas you can open a savings account either in a Sacco or a bank. Most of these savings accounts allow you to earn an interest of a certain percentage per year.

Most people hold the opinion that saccos are the best place to save your money so maybe you should give them a try. Safaricom has also made it possible for people to save without all the hustles of registering accounts with banks and saccos.

Check out here the 52-Week Savings Challenge Kenya that is ongoing. You can use this as starting point to save money. The challenge is all about saving a certain amount of money every week on M-shwari without withdrawing and having over 130K in your account come the end of the year.

5. Stop lending money to friends and family

Am not saying that you have to be mean with your money, but you must agree with me that the worst people you can lend to are friends and family.

As Dr. Chris Kirubi says these are people with whom you are never guaranteed a refund of your money and since society is made of these social strings, you can’t afford to let them snap just because of a small loan.

As hash as the reality can be, you need to learn how to say no to those family and friends who are always on your tail come end month expecting a chunk of your salary. You can save this money for a rainy day, you know.

In conclusion, if you haven’t started saving, this is the time to begin. For those who are unemployed, don’t wait until it’s too late to save. Start saving the very first month you get you a salary. With the best saving tips if you earn between 15-50K, you can wade through your 30s and 40s like a champ.