We usually talk openly about topics such as football, religion and, above all, politics
Many times, we argue heatedly without measuring the consequences. However, money does not happen the same.
There is always more that is hidden than the information that is revealed. Almost nobody says what they earn and it is impossible to find someone who cheerfully counts the money they have saved.
Next, we will provide our answers by putting numbers and setting goals.
1.From 20 to 30 years
It is very common to see how they spend their surplus that allows them to pretend. We talk about buying the latest in technology or fashion clothing. That is why there are so many brands that compete to be part of their language, the one that Identify them.
Paradoxically, saving at this age is the most profitable of all, because, provided it is correctly invested, it will allow the person to enjoy more free time throughout their life and have more time to have money “working” for it. , instead of her struggling to get money
For this age group the recommendation is to save at least 10% of the monthly income, so that, towards the end of the period, it is equivalent to one year of work has been accumulated.
For an income of, for example, Ksh.30,000 a month, a person of 29/30 years should have savings of Ksh.360,000
From 30 to 40 years
A typical mistake is to have between the brow and eyebrow the objective of the own roof and borrowed to meet it by mortgaging a good part of future income.
Nowadays, having a house of your own is not considered an investment in itself, since what we are doing is buying a liability: a good that will take money out of our pocket every month.
In economic terms, we note that the “opportunity cost” of the roof is very high: real estate is sold at such a high price, even with high rents in relation to wages, the average profitability generated by putting them in rent does not exceed 3% per year for owners, who must also ensure the status of their properties.
Instead of buying a house, it is better to invest good money and use the interest to pay the rent and finance other current expenses.
That said, the minimum saving that should be available at the end of this stage of life (39/40 years) is twice the annual income. Imagining a monthly income of Ksh.50,000, the desired floor is about Ksh.600,000
From 40 to 50 years
Those who have not yet saved can be optimistic and think that they are only halfway
There are many thanks to the extension of life expectancy.
In any case, prudence must be at the time of day and investments must be justified by weighty arguments. Nothing to follow options that promise easy and fast money. It is the most productive stage. The savings know it. Therefore, we should take full advantage of it by doubling the amount of money that we will allocate to investments that generate passive income With total income of around Ksh.70,000 per month, we should reach the end of the decade with a figure equivalent to five times our annual income: about Ksh. 4.2 million
More than 50 years
Investments must increasingly have a conservative bias, in order to avoid that the headwinds of an economy that usually dances with crises do not leave us prisoners of a recessive cycle and prevent us for many years from recovering the harvested capital. In addition, tranquility and predictability are synonymous with health at this stage.
Adopting the appropriate measures, it will not be necessary to think how much money is necessary to withdraw, an outdated question for the times, with people thinking less and less about a retirement and more about sabbaticals or temporary retreats.
