By using this site, you agree to the Privacy Policy and Terms of Use.
Accept

News Junction

Notification Show More
Font ResizerAa
  • Home
  • World News
    World NewsShow More
    Mexican-American singer Johnny Rodriguez, whose 1970s country hits topped charts, dies at 73
    May 11, 2025
    How this ‘generational shift’ impacts fitness, wellness industries
    How this ‘generational shift’ impacts fitness, wellness industries
    May 10, 2025
    Johor police probing Singapore-registered Maserati driver, 27, for fatal accident at Second Link: Report
    Johor police probing Singapore-registered Maserati driver, 27, for fatal accident at Second Link: Report
    May 10, 2025
    Pakistan retaliates after Indian missile strikes
    Pakistan retaliates after Indian missile strikes
    May 10, 2025
    Terror group supporters posted on TikTok from site targeted in Indian airstrikes | World News
    Terror group supporters posted on TikTok from site targeted in Indian airstrikes | World News
    May 10, 2025
  • Business
    BusinessShow More
    Ukraine blows up bridges to consolidate its positions in Russia
    Ukraine blows up bridges to consolidate its positions in Russia
    August 18, 2024
    Commentary: AI phones from Google and Apple will erode trust in everything
    Commentary: AI phones from Google and Apple will erode trust in everything
    August 18, 2024
    The most famous Indian Dishes – Insights Success
    The most famous Indian Dishes – Insights Success
    August 18, 2024
    Life on the road as a female long rides cyclist
    Life on the road as a female long rides cyclist
    August 18, 2024
    UK inflation rises to 2.2%
    UK inflation rises to 2.2%
    August 18, 2024
  • Cryptocurrency
    CryptocurrencyShow More
    Virginia Man Gets 30 Years For Supporting ISIS
    Virginia Man Gets 30 Years For Supporting ISIS
    May 10, 2025
    Mapping Out the Senate Stablecoin Bill’s Next Steps
    Mapping Out the Senate Stablecoin Bill’s Next Steps
    May 10, 2025
    Bitcoin holds the bulk of its gains from this week’s rally to 0,000, altcoins turn bullish
    Bitcoin holds the bulk of its gains from this week’s rally to $100,000, altcoins turn bullish
    May 10, 2025
    Ethereum price greenlit for further upside after surprise 29% ETH rally
    Ethereum price greenlit for further upside after surprise 29% ETH rally
    May 10, 2025
    Crypto sleuth probes attacker behind Bored Ape heist
    Crypto sleuth probes attacker behind Bored Ape heist
    May 10, 2025
  • Technology
    TechnologyShow More
    How to Improve Your Spotify Recommendations
    How to Improve Your Spotify Recommendations
    August 18, 2024
    X says it’s closing operations in Brazil
    X says it’s closing operations in Brazil
    August 18, 2024
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    Supermoon set to rise: Top tips for amateur photographers | Science & Tech News
    August 18, 2024
    Scientists Want to See Videos of Your Cat for a New Study
    Scientists Want to See Videos of Your Cat for a New Study
    August 18, 2024
    OpenAI’s new voice mode let me talk with my phone, not to it
    OpenAI’s new voice mode let me talk with my phone, not to it
    August 18, 2024
  • Entertainment
  • Sports News
  • People
  • Trend
Reading: I spent Sh1m savings on a wedding, how can I raise money for a house and car?
Share
Font ResizerAa

News Junction

  • World News
  • Business
  • Technology
  • Cryptocurrency
  • Trend
  • Entertainment
Search
  • Recent Headlines in Entertainment, World News, and Cryptocurrency – NewsJunction
  • World News
  • Business
  • Cryptocurrency
  • Technology
  • Entertainment
  • Sports News
  • People
  • Trend
Have an existing account? Sign In
Follow US
News Junction > Blog > Business > I spent Sh1m savings on a wedding, how can I raise money for a house and car?
I spent Sh1m savings on a wedding, how can I raise money for a house and car?
Business

I spent Sh1m savings on a wedding, how can I raise money for a house and car?

Published August 3, 2024
Share
7 Min Read
SHARE

I’m Wilson, 29 years old. I earn $1,237. I pay five per cent withholding tax (WHT) every month because the company is foreign and not registered in the country. So, they use another partner company that is registered locally. They receive dollars and pay me in Kenyan shillings at the current rate. They deduct five per cent WHT from this amount each month. Last year I saved up to Sh1 million in MMF, but I used it for dowry and a small wedding. I regret that move.

Currently, I have a baby with the woman I married this year. He is two weeks old. I have saved Sh750,000 shares in a Sacco which I joined as soon as I got a job. I also have two money back life insurance policies worth Sh41,500. One cost me Sh16,500 and the other is Sh25,000 monthly. I’ll have to pay this for 16 years. I lived in a one-bedroom house for which I paid Sh11,000 per month. Recently, I moved to a two-bedroom house that costs Sh35,000 per month. I have been here for a month now. I also have a piece of land in Kamulu which I bought two years ago.

Two things are giving me a headache at the moment. One is that I want to build my house and the other is that I wanted to buy a car. I’m thinking of taking out a Sacco loan for both. How plausible is this? Should I do it? If not, how can I reorganise my money to save and achieve these goals in the shortest possible time?

Alex Kibebe, the founder of Rubiani Wealth Management Ltd and an investment consultant and business development coach, says:

Based on the details you have provided; your net income is $1,175.15 after deducting five per cent withholding tax.

Using the current exchange rate of about Sh125 to the dollar, your income should be about Sh146,000.

Your monthly expenses include Sh35,000 for rent and Sh41,500 for life insurance payments, leaving a balance of Sh76,500 for other expenses and savings.

In order to achieve your financial goals, I would advise you to work towards saving 20-30 per cent of your net income, which equates to Sh30,000 to Sh44,000.

You can consider keeping your other expenses at Sh36,000 to save Sh40,000. If you manage to do this, here are two options you can consider achieving your goals:

You could put the Sh40,000 savings into your Sacco account for 10 months. This will increase your share to Sh1,150,000.

You can then borrow three times the value of your shares, totalling Sh3,450,000. With this amount, you could use Sh2,700,000 to build a house on your land in Kamulu and use Sh700,000 to buy a secondhand car.

Assuming an interest rate of 12 per cent per annum and a repayment period of five years, your monthly repayments would be Sh75,000.

To meet the loan repayments, you could consider temporarily moving your family to a more affordable house with a rent of Sh10,000, preferably in Kamulu, which will also allow you to supervise the construction of your house more conveniently.

You would also need to reduce your other expenses by Sh10,000.

Together with your savings of Sh40,000, this would give you enough money to repay the loan. Once your house is built, you can adjust your budget as you will no longer be paying rent.

If this is not feasible for you, consider investing the Sh40,000 savings in a money market fund (MMF) account to raise funds to buy a car.

If you save for a year and a half, you will accumulate about Sh780,000, which you can use to buy a car. You can then continue to invest Sh40,000 in the MMF account for another two years, bringing your investment to about Sh1,100,000.

You can then take a loan of Sh1,600,000 from your Sacco and combine it with your MMF funds to have Sh2,700,000 to build your house.

Assuming the same interest rate and repayment period as above, your monthly repayment would be Sh35,600.

This strategy allows you to take out a loan with a repayment amount equivalent to your current rent, allowing you to continue investing towards other goals.

Once your house is built, I would advise you to continue investing in the MMF account to build up an emergency fund that will help you hedge against currency fluctuations, cover job loss and deal with other emergencies.

You could also consider investing in passive income opportunities and raising capital to start a family business.

In addition to the above investment advice, I would recommend that you consult an independent investment advisor (not an insurance agent) regarding your life insurance payout.

The amount of Sh41,500, which is about 30% of your net income, seems high and may need to be reassessed. I would also advise you to consult a tax advisor as the withholding tax may not be your final tax obligation.

If you have any money problems, email us at [email protected] and leave your contact number. Money questions will be answered on this column.

#spent #Sh1m #savings #wedding #raise #money #house #car

TAGGED:carHouseHouse constructioninterest rateKamuluLife insuarance paymentsloanMoneyMonthly expensesMonthly replacementsNet incomeRaiserentRepayment periodSacco accountSavingsSh1mShare valuespentweddingWitholding tax
Share This Article
Facebook Twitter Pinterest Whatsapp Whatsapp LinkedIn Email Copy Link Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Bitcoin Price Tumbles To ,000: What Next For BTC? Bitcoin Price Tumbles To $61,000: What Next For BTC?
Next Article Rachel Bilson Shares Insight Into Co-parenting With Hayden Christensen Rachel Bilson Shares Insight Into Co-parenting With Hayden Christensen
- Advertisement -

Latest Post

Mexican-American singer Johnny Rodriguez, whose 1970s country hits topped charts, dies at 73
World News
Virginia Man Gets 30 Years For Supporting ISIS
Virginia Man Gets 30 Years For Supporting ISIS
Cryptocurrency
How this ‘generational shift’ impacts fitness, wellness industries
How this ‘generational shift’ impacts fitness, wellness industries
World News
Mapping Out the Senate Stablecoin Bill’s Next Steps
Mapping Out the Senate Stablecoin Bill’s Next Steps
Cryptocurrency
Bitcoin holds the bulk of its gains from this week’s rally to 0,000, altcoins turn bullish
Bitcoin holds the bulk of its gains from this week’s rally to $100,000, altcoins turn bullish
Cryptocurrency
Johor police probing Singapore-registered Maserati driver, 27, for fatal accident at Second Link: Report
Johor police probing Singapore-registered Maserati driver, 27, for fatal accident at Second Link: Report
World News
- Advertisement -

You Might Also Like

Bob Iger and wife Willow Bay strike record deal for US women’s football club
Business

Bob Iger and wife Willow Bay strike record deal for US women’s football club

July 17, 2024
The Economic Influence of Technology on the UK Gambling Sector – insights from InnovateChange.co.nz
Business

The Economic Influence of Technology on the UK Gambling Sector – insights from InnovateChange.co.nz

February 11, 2024
Kenya signs commercial contract to extend SGR to Uganda
Business

Kenya signs commercial contract to extend SGR to Uganda

February 11, 2024
Trump Georgia indictment: RICO charges could be a double-edged sword By Reuters
Business

Trump Georgia indictment: RICO charges could be a double-edged sword By Reuters

August 17, 2023

About Us

NEWS JUNCTION (NewsJunction.xyz) Your trusted destination for global news. Stay informed with our timely and accurate reporting on diverse topics, including politics, technology, science, entertainment, sports, and more. Count on us for unbiased and reliable updates at your fingertips.

Quick Link

  • About
  • Disclaimer
  • Privacy Policy
  • Terms of Use
  • Contact

Top Categories

  • World News
  • Business
  • Technology
  • Entertainment
  • Cryptocurrency
  • Sports News
  • Trend
  • People

Subscribe

Subscribe to our newsletter to get our newest articles instantly!

    © 2023 News Junction.
    • Blog
    • Advertise
    • Contact
    Welcome Back!

    Sign in to your account

    Username or Email Address
    Password

    Lost your password?