To become a millionaire in Kenya is very easy, all that is needed is financial discipline, develop saving habits, identify ideal saving plan, save before you spend and avoid living beyond your limits. If you set a goal of becoming a millionaire in Kenya even before age 30, this is the amount of money you should save per month.
The amount of money to save depends on your income and spending habit. If you are earning Ksh 10,000-Ksh 20,000 per month, the best way to save is by approaching an insurance company for Money Market saving plan, which will allow you to save Ksh 3,000-Ksh 8,000 per month.
Assuming that you save Ksh 8,000 per month through Money Market account, you will earn interest of between 10 % to 20 %.In a single year, your account will have Ksh 110,000.
Now, with a salary of Ksh20, 000, you are capable of saving up to Ksh 8,000 per month and in 9 years you will become a millionaire.
If you are earning Ksh 30,000-Ksh 50, 000, you are capable of saving Ksh 12,000-Ksh 25,000.Assuming you manage to save Ksh 15,000,which is on the lower side, in a single year your account will have Ksh 200,000,which is the principal amount plus interest earned on your savings. It means within 5 years you are a millionaire.
If your salary is between Ksh 60,000-Ksh 80, 000,then it means you are capable of saving Ksh 30,000-Ksh40,000.Let’s make the savings Ksh30,000.If you manage to save this cash per month,in a single year your money market will have a total of Ksh 380,000,that is principal amount plus interest on savings.So you need at most 3 years to become a millionaire.
Finally, those whose gross salary is Ksh 100,000-Ksh120,000 are capable of saving Ksh 40,000-Ksh60,0000 per month. Assuming you save Ksh 40,000 per month…which is very realistic, then it means in a single year you would have saved Ksh 510, 000, which is the principal amount plus interest on savings. Now you see only 2 years are needed to become a millionaire is you are earning Ksh 100,000-Ksh 120,000
More than 98 % of Kenyans earn between Ksh10,000-Ksh100,000 per month, which means every Kenyan is likely to become a millionaire within a maximum of 9 years. In short, you need 5 years to become a millionaire in Kenya.
What prevents people from becoming millionaires?
It is practical that most people especially in Nairobi live beyond their means. An individual who earns Ksh100,000 opts to live in apartment where he pays monthly rent of Ksh 30,000.This person owns a car which consumes at least Ksh15,000 and he also pays school fees for his two children. At the end of the month he spends more than he earns. If he decides to live in a Ksh14,000 house and avoids using personal car, he will for sure save Ksh30,000 per month.
Another thing that costs most Kenya is the love for alcohol. Imagine a single Tusker or Guinness beer costs Ksh 180-Ksh250 and in a week you consume 10 bottles, that means in a month you consume 40 bottles which cost a total of Ksh 10,000.
If you compromise the two things, you will for sure become a millionaire before age 30.