Tuk Tuk in stage queue customers /Photo courtesy/
Hello Daglas,
My name is Mark. I work as a tutk tuk rider in Kisumu making an average of 1,000 a day. How do I save to buy a piece of land and build my three bedroom dream house?
Hi Mark,
Thank you for reaching out. It’s great that you’re thinking of investing in land and building your dream house! Here’s a step-by-step plan tailored to your situation as a tuk-tuk rider
To achieve your goal of owning a home, the first step is to define it. Start by researching the cost of land in your desired location and estimating the construction cost for a 3-bedroom house.
Break down the construction expenses into stages, such as the foundation, walls, roofing and finishing inorder to get a clear understanding of the financial commitment involved. It is also important to set a realistic timeline for achieving this goal, based on your financial capacity and market conditions.
Once you have a clear understanding of your goals, create a budget. With an average daily income of Ksh 1,000, you are earning approximately Ksh 30,000 per month. After deducting your regular expenses, determine how much you can save each month. To stay on track, commit to saving 20-30% of your income. For instance, if you save Ksh 300 daily, this would amount to Ksh 9,000 per month. Open a savings account or join a SACCO (Savings and Credit Cooperative) to ensure your money is kept safe and earns interest, contributing to the growth of your savings.
Consider diversifying your income streams to accelerate your progress. Use your tuk-tuk to generate extra income by offering delivery services or renting it out when it’s not in use. Additionally, explore small, low-capital businesses that can boost your financial situation and provide you with more funds for your goal.
When it comes to acquiring land, start small. Look for an affordable plot in areas where land prices are lower but show potential for growth. Some land sellers offer payment plans or installment options, making it easier for you to manage the cost over time. You can do due diligence to know which companies offer such payment plans.
As you work towards building your house, consider constructing it in phases. Begin with the foundation and then proceed with one section at a time as funds become available. This approach ensures that you make progress while managing your finances efficiently.
Lastly, it’s essential to monitor and adjust your plan as needed. Track your savings and construction progress monthly to ensure you’re on target. If you find that your income or savings are not sufficient, be open to adjusting your strategies, such as increasing savings or finding additional income sources, to stay on track toward achieving your homeownership goal.
Daglas Radido
Financial advisor and budgeting strategist at the Jubilee insurance
You can reach out to him via phone call/ sms 0719209839 or email drfabfinancialservices@gmail.com
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