How much Money do you Need?

bigDog

bigDog

Elder Lister
@$$$, @RANDY $, I thought I should create a thread for this topic. It's useful to know how much money one REALLY needs. Perhaps, we should not lose ourselves in pursuits that do not enrich our lives.

I'm approaching this issue from two points of view. Alex is a 45 year old married man with three children attending school. He is in the process of building a "pigstay" hapo Joska. On the other hand, we have Milly, she is 60 years old retired teacher and lives in her own apartment kwa Jacada estate hapo karibu na Kahawa West. All her children are grown.

Now, let's do the needs assessment for each of them. For simplicity, assume we are talking about family income.

Alex and Milly
House consumables
Domestic worker
House bills
Medical insurance
Clothing and furniture replacement
Cost of running a car/transport
Home maintenance and repairs
Welfare/clubs/entertainment
Investing

Alex Only
Primary school fees
Secondary school fees
College fees (let's do both private and public)
Supporting parents/siblings where applicable.


Feel free to suggest more categories. For each category, give a monthly budget for the amount of money that you think is sufficient.
 
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bigDog said:
she is 60 years old retired teacher and lives in her own apartment kwa Jacada estate hapo karibu na Kahawa West. All her children are grown.
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Woko na other sources of income ? Kama huyu retired teacher could be rearing pigs anauza hapo farmer's choice besides her pension ? I may be out of phase, feel free to correct me
 
bigDog said:
@$$$, @RANDY $, I thought I should create a thread for this topic. It's useful to know how much money one REALLY needs. Governor Kiraitu Murungi said the other day that we should not lose ourselves in pursuits that do not enrich our lives.

I'm approaching this issue from two points of view. Alex is a 45 year old married man with three children attending school. He is in the process of building a "pigstay" hapo Joska. On the other hand, we have Milly, she is 60 years old retired teacher and lives in her own apartment kwa Jacada estate hapo karibu na Kahawa West. All her children are grown.

Now, let's do the needs assessment for each of them. For simplicity, assume we are talking about family income.

Alex and Milly
House consumables
Domestic worker
House bills
Medical insurance
Clothing and furniture replacement
Cost of running a car/transport
Home maintenance and repairs
Welfare/clubs/entertainment
Investing

Alex Only
Primary school fees
Secondary school fees
College fees (let's do both private and public)
Supporting parents/siblings where applicable.


Feel free to suggest more categories. For each category, give a monthly budget for the amount of money that you think is sufficient.
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Very important thead
Hope we don't deviate too much !
 
Kasaman said:
Woko na other sources of income ? Kama huyu retired teacher could be rearing pigs anauza hapo farmer's choice besides her pension ? I may be out of phase, feel free to correct me
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They are probably earning somewhere. Hata kama ni pension. What we need to find out is what they REALLY need. They could be earning more or less than they need.
 
This is ambiguous .....
These two individuals are on different ends of the spectrum we can only determine their needs based on assumptions of individuals lifestyles and earning capacity.
 
RANDY $ said:
This is ambiguous .....
These two individuals are on different ends of the spectrum we can only determine their needs based on assumptions of individuals lifestyles and earning capacity.
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Can we then separate them? That is the point I was making to @$$$ in the other thread.
 
Okiya said:
In my opinion, that Kiraitu Murungi story is bullshit, hogwash, balderdash, gibberish, nonsense. Millions of Kenyans stare death on a daily basis from hunger and other diseases sometimes brought about because of corrupt politicians but he wants us to feel woishe for him
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I'm sorry I included Murungi's name here. I will try to edit it out so that we can focus on the issue at hand.
 
2X+ of your monthly expenses is the right income. If your expenses are 100k, earning 200k+ net will put you in a relatively safe place.

So, both individuals can use that simplified formula to determine their "right" income.
 
My thoughts on costs per month per person. Values for retirees are in brackets:

House consumables 5K (8K)
Domestic worker 14K
House bills 9K (6K)
Medical insurance 8K (15K)
Clothing and furniture replacement 8K
Cost of running a car/transport 45K
Home maintenance and repairs 10K
Welfare/clubs/entertainment 30K
Investing 80K

Schools
Flat rate of 100K per child per year.
 
I don't know how to approach this correctly.
The two have different needs, in your example one is living rent free and the other is assumed to be renting and in the process of building a home.
One still has kids in school and the other's kids are all grown.
The one with kids needs an average of 40k a month for food.
Transport is at a rough average of 30k per month.
The other who has grown kids, basically feeds one mouth, her monthly expense would be roughly 2500 power bill, water and garbage, 15k food. 10k chama (wamama wanapenda Chama). 5k ya miscellaneous
 
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