Jambo to you, my name is Selestine Were and this is Tamara’s Financial Planning & Consultancy the home of your Personal Finance.

Using the 50-30-20 budgeting rule, you can allocate your take-home pay into three main categories: needs, wants, and savings. Here’s a breakdown of how you can apply this rule to your monthly income of KSh 30,000:

1. 50% for Needs

This portion of your budget covers essential expenses such as rent, utilities, groceries, and transportation.

Calculation: 50% of KSh 30,000

0.50 × 30,000 = KSh 15,000

Monthly Budget for Needs: KSh 15,000

2. 30% for Wants

This part of your budget includes discretionary spending, such as dining out, entertainment, and hobbies.

Calculation: 30% of KSh 30,000

0.30 × 30,000 = KSh 9,000

Monthly Budget for Wants: KSh 9,000

3. 20% for Savings and Debt Repayment

This portion is allocated towards savings, investments, and debt repayment if applicable. It’s a good idea to prioritize building an emergency fund, contributing to retirement savings, and other long-term financial goals.

Calculation: 20% of KSh 30,000

0.20 × 30,000 = KSh 6,000

Monthly Budget for Savings and Debt Repayment: KSh 6,000

Summary of Your Monthly Budget

Needs: KSh 15,000

Wants: KSh 9,000

Savings and Debt Repayment: KSh 6,000

Additional Tips

1. Track Your Spending: Regularly track your expenses to ensure you’re staying within your budgeted amounts for each category.
2. Adjust As Needed: If you find that you’re consistently overspending in one category, adjust your budget accordingly. For example, if you spend less on wants, you can allocate more to savings or reduce debt.
3. Build an Emergency Fund: Consider using part of your savings to build an emergency fund, ideally covering 3-6 months’ worth of expenses.
4. Invest Wisely: Look into investment options that can help grow your savings over time, such as a retirement account or other investment vehicles.
5. Regular Review: Review and adjust your budget periodically to reflect any changes in your income or expenses.

By following the 50-30-20 rule, you’ll ensure that you’re covering your essential needs, enjoying some discretionary spending, and saving for your future.

Regular Review: Review and adjust your budget periodically to reflect any changes in your income or expenses.

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

By living within your means, you’ll learn to be comfortable with little and so as you grow, you will be able to manage your FINANCES the more .

Thank you once more.

Tamaras, “Your to go to Financial Advisor”

Whatsapp: 07777675977

Call: 0722675977