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Simple Financial playbook for 25 year old


Most Kenyans start employment at 25. For those who are lucky,  23 or 24, but they are few. But this is likely to change in the coming two years and the right topic should be “simple financial playbook for 23 year olds”

I left college at 25 and three months later I got a contract. My employer accrued my dues daily  and paid me at the end of the week. It was not bad starting point. How did you start your employment? I know most Kenyan graduates start as sales people in local banks. The challenge for many young Kenyans is how much to save where, how much to spend. Previously I share the best way to start saving for Kenyan context.

I will share with you simple strategies that will help you have a better disciplined saving culture if you just got employed.


Have a fund equal to three months of your monthly income. This comes as a cushion in case you get laid off unexpectedly. Its a reality this days unless you father owns half the share of the company you work for, otherwise……fill in.

Having a fund to fall back to. How much? make it three months of you current earnings.

Save 30% of your salary in small investment groups. This may take the form of “Chamas” with your colleagues at work or those you do business together. It comes in handy when you have an emergency. Members borrows short term quick loans that settle small issues.

This simply means that you have very little to spend on luxury. For a 25 year old earning 25k a month, 6k should go your chama. Life will be hard on you the first year, if you are consistent, life should be much easier the third year.

Never look for a Shylock. You better join that chama with your colleagues. Its really helpful

If you don’t have an insurance policy you honestly need to call me. I will tell you why you need to have one. But you need a long term saving saving strategy and I feel taking up an investment plan with your insurer or if you have lump sum deposit with an asset manager.

Taking up this kind of policy will limit disposable cash on your hand, which makes it easier for you to work hard for the next coin. The other reason you need an investment plan it forces you to continue contributing. No one want his policy to lapse after contributing for three years. This is what made me to take mine.

Put some money with a fund manager. Take up an investment policy with your insurer. if you don’t know which one, call me or send me an email

Note that I never said buy some shares. This also works for long term saving strategy as you work for your retirement.  I have numerously advised that you need to plan your retirement the day you step in to employment

Never depend on single income stream. Of course the above simple strategies helps in mitigating the shock of loosing your employment. But the thing is you need to have another source of income. If you don’t have another source of income start blogging. If you blog consistently for eight years without earning from your blog, then you will have posts that bring you income.

Just write anything and post it. I started mine, themoseswafula the same way. Also learn how to become a good kenyan blogger or start your own website. If all these can help you, then you are doomed.

My strategies are motivated by the motives of holding cash.