Hi guys I’m back with another blog-post. I know it has been a while however I have been truly uninspired.

For those who are not familiar with ‘Swahili’ or ‘sheng’ (the colloquial equivalent of Swahili in Kenya), salo means salary. ‘Where did my ‘salo’ go?’ is a really common question among employees.

The week before pay day is usually an excruciating countdown some people are usually covered up to their eyeballs in debt and are anxiously awaiting pay day. Pay day feels like Christmas in a way; people are jolly and light-hearted even people who never say hi to you say hi. It’s somewhat bizarre yet comical.

I know that money management is an exhausted topic and I don’t claim to have all the answers or be an expert but I have learnt a few things during these few months of employment that have come in very handy.

1.      Account for all expenditure and income

I know that this may seem dreary… I’m also not a fun of numbers and counting. But this is so key and all you need to do is enter your expenditures on excel. I think excel is the best program for this because anyone with basic knowledge on Microsoft office programs can operate excel and the great plus is that you won’t have to worry about the numbers. It’s all done for you addition, subtraction, division you name it. It’s a pretty great deal right? Only catch is that you’ll have to create a budget template; I know this sounds rather daunting and laborious but it really isn’t. There are many resources online and if push comes to shove do what I did, create one that work for you.

Each sheet represent a month. I have created a calendar with all the dates of the month on each sheet; on the far let I have a column on all the categories of spending e.g. airtime, shopping, food/snacks, transport etc…. I fill it in daily and it’s very easy. I found that filling it in at the end of the month is laborious and rather tedious. I end up procrastinating and falling months behind. It is worth the effort because you can identify areas where you overspend. It’s also a great saving tool

2.      70-20-10 rule

The 70-20-10 rule is something my parents (thanks mama and papa) introduced my sister and I to as soon as they started giving us allowances. I’m not saying that this is the go to rule however it has worked wonders in my parents’ life.

They have come from virtually having nothing financially to being very successful financiers. I admire them both greatly and marvel and their individual financial journeys. So the rule is very easy 10% of your monthly income should go to God in form of tithe, 20% of your monthly income should go to savings account and lastly 70% of your monthly income should be used for your expenditures and investments. This requires a lot of dedication, patience and DISCIPLINE. 

3.      Prioritise your needs and invest and save accordingly

I recently learned about this during a weekend retreat with family friends and I have to say it is one of the best pieces of advice I have ever received. Write down all the things you want and I don’t mean ‘a date with Channing Tatum’….I mean things that you want to attain that require financial planning.

E.g. buying a car, moving out/renting a place, building a house, driving lessons, getting a degree, holiday to Spain, getting married etc…. so once you have your list, prioritise the items you’ve listed then once you’ve done that start saving accordingly. Say number one on your list is now buying a car, do your research on the type of car you want then figure out a saving plan that will help you attain the car within the timeline that suits you and your pocket the best.

4.      Pray for guidance and wisdom

As usual I left the best and most important for last. Commit all your plans to God in prayer. Ask for guidance and most importantly wisdom; remember that with God all things are possible and furthermore He has the best intentions for you. So it is only right to involve him; it’ll only be to your advantage. Read Proverbs 8.

So there you have it. I know the festive season is upon us; just remember these four points. Hopefully come January you won’t be thinking/asking ‘where did my salo go?’