How many people have their monthly budgets documented for the last two years? How many people can balance their expenditures depending on the income they get?
Many people still struggle with financial planning; they fail to assess risk tolerance levels and define an investment horizon. They also fail to evaluate their investments or if their professional investment advisors drift with the currents of the market.
These struggles have made many people fail to plan for their finances hence failing to balance their budgets. Financial record keeping is the only solution to financial planning and expenditure.
George Njoroge, the CEO and MD of East African Data Handlers and a Cyber and Computer forensic guru, has come out to explain that someone’s total rent per year should not exceed their salary for two months.
“If your total rent per year exceeds your two month’s salary, then you are in the wrong apartment,” Njoroge said.
He added that housing is overpriced, primarily due to a severe problem of lack of houses. He questioned why most apartments are not built to 20 floors.
“Why does everyone build 5-6 floors in Nairobi? Why do most developers avoid installing lifts? Our urban planners need to consider housing seriously,” he advised.
However, the comment did not go well with his followers, with some coming up with practical calculations saying that can’t be achieved in Kenya.
“So if you earn 100k a month you should be in a 16k apartment? That’s unrealistic especially in most of Kenya’s urban towns,” Mohammed Shee disagreed.
“This can only be advice for single people because it makes no sense for a family type setting. If you are married with three children and you earn 100K, where will you find ‘Decent’ housing for 16K a month for a family of five?” Angie M questioned.
“Which economic principle are you basing this on? There’s a model that even government’s use. Rental expenditure would be equated to 15% of one’s Gross monthly salary which is not feasible anymore. A civil servant earning 80k per month today, 28k of it is housing allowance,” Jeff Mujefu explained.
