My name is Freddie. My monthly net salary is Sh170,000. Every month, my expenses are as follows: Rent Sh45,000, groceries and shopping Sh20,000, transport Sh10,000, parents’ upkeep Sh10,000, bank loan Sh16,000 (outstanding loan balance is around Sh210,000), car loan Sh45,000 (outstanding loan balance is around Sh420,000), school fees Sh30,000 (two children in grade one and three), the rest of my money goes to mobile loans (I have Sh9,000 mobile loans that I pay and borrow again) and miscellaneous.
I would like to save enough money over the next three years to buy a plot worth Sh1 million within the Nairobi metropolitan area, preferably in Kiambu County. I would also like to construct a Sh5 million three or four bedroomed bungalow to avoid paying rent in the city. How do I manage this given that I am left with about Sh5,000 after expenses and loan deductions?
