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How to multiply your money in 2019


Money saving tips for fresh graduates

January is a good example that money indeed can fly away. Not everybody can make a million shillings, but everybody can spend a million shillings without any special training.

After my first degree, my only dream was to be a CEO by 25. Unfortunately, this dream was cut off midway because as I came to learn, being a CEO requires a specific set of skills and resources that I might not have had by then. However, in my years of experience, I have made some good decisions and learnt ways to do better in the future. This article will help new graduates to multiply their salary and secure their future.


Short term savings

During the year, you may want to buy new clothes, furnish your house, start a small project as a side hustle and go on holiday. All these are short term goals that require a cash reserve. The best way to fulfill these goals is by saving part of your salary. However, salary is never enough and this is why it is advisable to save first then spend the remainder.

How much should I save?

How much should I save? This is a common question among young people. The answer is, you can save as much as you need. Once you set a financial goal, you need to use that goal and the duration required to raise it to determine how much you should save. Another factor that will determine how much you should save is your capacity.

People earn different salaries and their needs are also varied. Someone who earns 15,000/- a month may not save as much as someone who earns 150,000/- a month. The irony, however, is that low-income earners tend to save more than their high-income counterparts. (We shall explore reasons for this in a different post so check it out).


The rule of the thumb is to save 20 per cent of your net salary. If you earn 50,000/- monthly, your net income will be 38,500/-. This means you can save 7,700/- monthly, which translates to 92,400/- annually. If you save in the money markets, you could earn yourself over 100,000/- by the end of the year!

Where to save for short-term goals

Are you saving for a holiday at the end of the year, to furnish your house, or start a side hustle? It is always good to put money where it grows. Most people keep their money in a piggy bank, but you are well aware that you will get only what you put in. This is very selfish considering that people are looking for loans for various purposes.

If you put your money in a sacco or savings account, you can help some people meet their financial obligations and earn interest from it. You can also put it in a money market account or get into a payment plan for your trip or furniture. Usually, airlines give offers on fares during the year. You can get your ticket early and pay slowly during the year. The same applies to hotels and holiday packages for various destinations.


Check out tips on how to get cheap flights here.

Medium-term savings

Medium-term savings are aimed at meeting your medium-term goals. Your medium-term goals include paying off your HELB loan, buying a car, acquiring a piece of land or house, getting a masters degree, acquiring professional qualifications, getting married, and touring or working in another country.

How do you save for medium-term goals? When it comes to paying off a debt, the best way to go about it is by making arrangements with your employer or bank to make the deductions monthly before you are even paid anything. Debts can be a burden, and so the earlier you settle debts the better.

If you have a HELB loan, make arrangements with your employer to deduct some money from your monthly salary to avoid accumulating huge amounts of interest and hence increase your financial burden.


Other medium-term goals such as a home, land or first car can utilise a loan facility. If you are able, you can save towards these goals in a sacco, fixed bank accounts, education policies and the money market.

See Also: How to make money doing nothing

In addition, do not be afraid of asking for credit facilities whenever an opportunity presents itself. Avoid paying for something in one instalment especially when buying assets such as cars and land. This will give you time to study the property/product and see if it may have issues. When it comes to education, you can always ask to pay in monthly instalments to clear by the time you are sitting your exams.

Long-term savings

Long term savings often go towards goals such as retirement, your children’s future, property and business. You want to be able to receive money constantly after retirement, and the best way to do this is by looking for a favourable investment plan. Today, brokers such as Stanlib help people save towards this goal, and you can even enjoy some tax relief!


Many people secure their children’s future through insurance covers. While this savings plan works for some, I would strongly advise against it because things change. I personally lost about 400,000 after terminating an insurance cover I had bought when I first got a job. After contributing over 500,000/-, the company decided to pay me only 150,000/-.

See Also: How I lost KES 540,000 in a savings scam

The best way to save for your children is through unit trust. Most firms will allow you to be making withdrawals after the first three years, which is handy in case you lose your job. When your children come to age, they will continue enjoying the benefits and can use the proceeds to pay for their school fees.

Government bonds are also a good investment option. You can save in a sacco for 3 years and use your savings to buy government bonds. Bonds mature after 10 years, and are a sure way to earn a regular income especially after retirement or in case you lose your job.

If you are planning to start a business in a specific industry, start small at an early age. If you can use other people to get started, do it. For instance, if you want to become an agripreneur, first become a broker. Find trustworthy farmers and a market for their produce. Buy from the farmers and supply to the buyer at a profit. You will find that this is a hustle free way to earn. With time, you will buy your own truck to transport produce from the farm to the market. After a while, you will buy fields, find sources of water then start farming slowly by slowly. Make all mistakes while still employed so that when you quit, you can focus on only on making profit.


In conclusion, it is important to start saving early even if you do not have a financial goal yet. If you have debts, get rid of them as soon as possible. When picking an investment plan, seek professional advice from unbiased advisors, and do your own research before putting your money anywhere. Whatever you do, ensure that you are getting value for your money and always think about your retirement from the day you earn your first salary.

Got any questions? Ask in the comment box below and we shall try our level best to respond to you. Happy saving!

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Linguistics graduate and seasoned online journalist, researcher, content manager and SEO analyst.