8 useful financial tips for Kenyans in their 30s

Here are some financial commandments to help you through your 30s.

Turning 30 is the most crucial financial crossroad to many young Kenyans.

So you've just turned 30 (or approaching your 30s) and are now about to enter into a new phase of life. Whatever you do at this monetary pivot in your life may as well lay out the blueprint for what your financial life will look like in future.

Whether you have kids, you are married or have a house, here are a couple of financial tips to help you manage your money wisely:

1. Your house is not an asset

Owning a residential house or an apartment is not necessarily a measure of success.

Look, if your home is taking money out of your pocket, in terms of a mortgage, instead of putting money in your pocket, (i.e. in the form of rentals or home businesses), it is a liability, not an asset.

As you turn 30, be sure to understand the difference between assets and liabilities before making large purchases.

2. Cut back on your vices

You might just have to cut on those pleasurable activities such as drinking, smoking. You are entering into another phase where such habits will have to reduce or else you’ll end up running broke!

Remember, you are now in a stressful work environment and such vices, however much they seemed as a fun way to pass time in your 20s, might end up becoming a financially draining addiction.

3. Save, save, save!

Set a savings goal and adjust your lifestyle to meet it. Do not set your saving goal to meet your lifestyle, you will always be broke.

If possible, try save about 25-30 per cent of your income after taxes. The secret to being wealthy is learning how to pay yourself first.

4. Consider the cost of having kids

Take time to consider the implications of having kid(s) at this phase. I am not saying that you shouldn’t get children but at least be aware of the financial implications that it will have in the years to come and especially now that you are adopting a parental role.

5. Set aside an emergency fund

Things are about to get real as you approach your 30s, now that your mum or dad is not there to cover your financial mishaps. As your income and expenses go up, so should the amount in your emergency fund.

6. Do not be content with that one job

In other words, run a few side-hustle job(s) so as to improve your income. You cannot be too sure of what might happen with your main job, especially in this period where a lot of companies are firing tons of employees indefinitely.

7. Learn to cook 

Unless you have your wife or bae to prepare your meals, then it’s high time you ought to learn how to cook. Cut on going out to buy meals and save yourself some coins.

It can also be very helpful to plan out your meals for the week ahead of time to create a grocery budget and eliminate random spending on unnecessary food.

8. Be mindful of your advisers

Know the type of people who are offering you financial advice as everyone will have an opinion when it comes to money.

People who may seem to be doing well financially may really be broke and living off debt. Question everything and be careful not to live someone else’s life; live within your means!

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