here goes my saving M.O.
right after college, my 3 bosom buddies and I, formed an L.C. whereby we were each allocated an equal no. of shares in the co.each shareholder was to find his own means of buying his alllocated shares(totalled to 3M per shareholder) we each took out a loan of at least 750k(we all got long term job contracts stat and were able to get personal loans) which went towards forming the initial co.capital. we started a school, ventured into stocks and, to a small extent, real estate.
each shareholder committed himself to chipping in a certain amount monthly which went towards buying the initially allocated shares. I contribute at least 15k voluntarily towards this end on top of the approx 15k that goes towards the initial loan repayment. the co. has had astronomical growth since '07 but we always reinvest our gains into the co. our stock portfolio is up in excess of 150%, our academy is doing exceptionally well and our real estate holdings amount to a princely sum. we are all under 30, our initial personal loans monthly repayments expire next year. we intend to continue investing in the co. for another 5 years before earning any dividend. moral?
find an investment vehicle that 'locks' your savings but also brings superior returns. this works if you begin with your 1st payslip(and avoid the ensuing consumerism) and and have like-minded friends.
Happy investing!

I Think the reason Am poor is cos i never TITHE! well not 10% anyway. or does helping someone in need a form of tithing?

@Wendz, hope this helps...

Dear Fred & Catherine:

Over a period of a good many years I have known a great many people who at some time or another have suffered in various ways simply because they did not have ready cash. I have known people who have had to sacrifice some of their holdings in order to have money that was necessary at that time.

For a good many years your grandfather kept a certain amount of money where he could put his hands on it in very short notice.

For a number of years I have made it a point to keep a reserve, should some occasion come up where I would need money quickly, without disturbing the money that I have in my business. There have been a couple occasions when I found it very convenient to go to this fund.

Thus, I feel that everyone should have a reserve. I hope it never happens to you, but the chances are that some day you will need money, and need it badly, and with this thought in view, I started a fund by placing $200.00 in an envelope, with your name on it, when you were married. Each year I added something to it, until there is now $1000.00 in the fund.

Ten years have elapsed since you were married, and this fund is now completed.

It is my wish that you place this envelope in your safety deposit box, and keep it for the purpose that it was created for. Should the time come when you need part, I would suggest that you use as little as possible, and replace it as soon as possible.

You might feel that this should be invested and bring you an income. Forget it -- the mental satisfaction of having $1000.00 laid away where you can put your hands on it, is worth more than what interest it might bring, especially if you have the investment in something that you could not realize on quickly.

If in after years you feel this has been a good idea, you might repeat it with your own children.

For your information, I might mention that there has never been a Buffett who ever left a very large estate, but there has never been one that did not leave something. They never spent all they made, but always saved part of what they made, and it has all worked out pretty well.

This letter is being written at the expiration of ten years after you were married.

Ernest Buffett
“Dad”

I may be saving differently as i dont consider the percentages. here it goes:
1. 9K Life Insurance (Unit Linked-to reap the most return)
2. 12K fixed depo every month.
3. 8K Savings A/C for emergencies
4. 4K Sacco
5. 10K irregularly to boost my share portfolio.

Very good discipline. It's clear too that you don't have kids because half or more of that cash you've put in your Life insurance would go to an education policy. Iguess that's for later but all the same, that's commendable discipline, keep it up.

@muganda, how about (on a company level) converting cash reserves into dollars to avoid the negative political influences exerted onto our local currency?

i contribute money to saccos and chama and treat them like monthly expenses. I also value stocks and land as a store for value and growth avenues.

@ Sigiriri,

What is target saving but I think I have an idea, from the name.

Which SACCO is this that offers target saving?

No it ought to be in club Sk which has more visitors.

Thanks guys for the thoughts,

Is the 40% on net or gross if on gross then it takes lot of discipline. Below works for me
1. Pension 16% ( Interest 12% 2010)
2. Sacco Shares 4% ( interest 9 2010)
3. Sacco Saving available on Dec 4% ( xmass package) gave 20% interest last year
4. Sacco loan 24% (Invested on kaplot) Interest on the loan 12%

Long terms ( Pension and sacco shares) only available when leaving the current engagement.

Long term for education of the kids, i plan to have at least a plot for each kid to sell and take them though their university education, if need be.
Any windfalls and bonuses channeled towards the loans to shorten the pain.