Invest in 'stock market and make about 30% in a year'

I am a newbie,can someone explain how you get 30% return on investment in a year,I would sure like to know


Marriages are made in heaven. But so are thunder and lightning.

@Mkimwa and all,

Today let me give you my actual experience.

My income is not very high. I do something like 50K net per month. The day I thought of getting a car I indeed had options like getting a loan from my bank; as a matter of fact they were chasing me to really get one and was very tempted to. I could have gotten something like Ksh 800,000 or even a Million if I would have taken it for a longer period.

That amount would have gotten me a nice Toyota Premio,Pajero IO,or even Toyota NZE,Golf etc. These cars are the imported secondhand that have done an average of 40,000 to 60,000KM. Some will even be on the 80 and 90,000 range. I would be feeling nice that I have a close to latest model of car since I managed to get a loan of 1Million from the bank.

Instead I took a different route. I decided to keep some shillings away. When I reached Ksh 250,000,I started looking for a car that would fit that budget. I was looking for one that is decent,probably not very fashionable,but in good condition and can go wherever I wanted it to go. I had also said that if I cannot find that kind of car within that budget,I would still take time and save some more till I get what I was looking for.

Believe it or not,I got what I was looking for and I believe it is in the same range in terms of utility if not better,as those secondhand imports from Japan I had mentioned earlier.

I managed to get a well maintained 1996 Peugeot 405 for Ksh 250,000. It had only done 51,000km. The car is infact quite economical unlike what many people believe. On long trip I have managed to do 14km/l,although town drive can be down to 10km/l depending on the road condition but it does not go below that.

When it comes to insurance am only paying Ksh,12,500 per year as opposed to something like 50,000 if I would have gotten a 1M car. i am not paying a loan for it so that is out.

When it comes to service,I have seen that some 405 parts are relatively cheaper than Toyota parts. that is a fact,you can check in shops at Kirinyaga road. Additionally,405 has longer service intervals and its parts last much longer than a number of Japanese cars (Toyota),thus compounded I end up spending much less than if i had gotten the other cars i mentioned earlier. Remember my example on the calculations. Now this fact holds even more so for cars liek Mercedes Benz. It parts rarely break down.

Of course,I have had to put up with people's perceptions of a young jamaa like me driving an old car,but by the way if looked at it,you would not think it is that old. It looks as good as new,drives and handles as new,so that compensates for only inadequacies of having it.

one day,when my wealth increases,since I am still investing,I will be able to go to the showroom and purchase cash,a Mercedes Benz. that's my dream car,but for now,i'll keep this old Pujo since it is sufficient and it costs me relatively less to keep.





each day is a gift from God; I dont know if I will be here tomorrow; should I be,I'll make the most of it for God's glory; should I be not,pick up and keep the legacy

@smano. I was just pointing out a fact with no pun intended. There are many other means of arriving at the next level and a car just happens to be one of them. That's not meant to discourage anyone from buying one though.

I believe its much better to buy utilities such as cars on a cash basis as opposed to loans. You dont have to start with a very expensive model. Go for the cheapest you can afford and keep upgrading as you save/earn more cash from your investments

Did you know that cheaper the car the car the less it depreciates so long as you maintain it in good condition. If today you bought a car at 250k its very likely that you may be to sell at 270k one year down the line. On the other hand if you buy a car at 1m and try to sell it after one year,you'll be very lucky to get 800k. The longer you keep the more money you loose.

I strongly believe that you only buy a personal car cash if you have no better use for that cash. Loan is the way to go because all other expenses for the car are same except for the interest you pay. Buy the car on loan.


without a vision,a people perish

Guys come to think of it,the cash you are using to buy a car has taken you monthly savings to bring it to a certain figure,say 300k. That means over this time,this cash has not been adding value,infact you have been loosing considering inflation. Then you tell me to use the same hard earned cash to acquire a liability? No way! I will always drive a personal car on loan. I better crack my head kabisa on how better i can invest my savings rather than purchase a liability which has no returns.

without a vision,a people perish

Interesting views(yaani maoni) here,I think I will go for a car loan and invest the cash for future returns.

I am now tempted to buy a car coz my nature michelin is under threat lol!! Besides this life has no rehearsal

Hey Wachiras,making in excess of 200k in Juakali per month fine but then who will give yu a car loan for dat!

The chief value of money lies in the fact that one lives in a world in which it is overestimated.

Funny how people dont understand "decision already made to buy" honestly if a car was that expensive to maintain we wouldnt have so many around. From my experience i spend maximum 12000ksh(2 services) anually in servicing my 2003 Allion unless u will be driving to Juba weekly.If u buy a Toyota car in fair suspension condition what else will cost 60000ksh 3 times a month being shown here kwani ni 22 wheeler. I always spend more and get am less reliable when i have to hussle around with a mat.The biggest budget in maintaining a Toyota(i insist toyota coz i have no experience with others) is maybe putting new tyres if u buy one with worn out at 9000each for a good brand which should run 2years if u do light travel.Pay attention to suspension,and make sure engine or gear not previously repaired could resurface with new probos.

Go forth, buy a car.....it's no longer 1980s when cars were looked at as LUXURY. If you want efficiency, comfort, and you know YOU CAN AFFORD it, do it! I'm 29 and on my 3rd car....so the key is, can you AFFORD it and not go hungry and be able to pay school fees and support your fam, do it!

Sometimes I think the worst decision I made was to buy a car. And am on my 3rd one in 10yrs. Yes, it gives you comfort and covenience but looking back its a big liability.

Kitambo before the car all I needed to get to work and back was 100 bob using a mat. But now I need a minimum of 600bob for the fuel and 140 bob for the parking. So that's 740 bob a day, or 3700 a week or 14800 a month or 177,000 bob pa. Weekend errands at 1500 a weekend give 78,000 pa. Insurance at 42000pa. Servicing at 6000 x 3 times giving 18000. Tyres 15000 x 4 = 60000 bob running for 2 years (thus 30,000 for tyres per year). Depreciation 150,000 per yr. Thus total cost of running the car is 495,000 pa. A matatu would have cost me 150bob daily to get to work or 750bob a week or 39000 per yr, meaning i'd have saved 456,000 bob per yr or 4,560,000 for the 10yrs I have been driving. Add another 1,000,000 for the car purchase and the set back is 5,560,000 Bob. Enough money to buy an apartment at Nyayo Embakasi.

And car ownership comes with other hidden expenses like more phombe (coz you know you will still get home even at 3am), more female company that thinks you are loaded and thus should foot all the pub bills etc (and of course more landings). So if you were taking 4 tuskers (800bob) and then catching a mat to get home, now you will most likely be taking double that i.e 1600 coz you have wheels to get you home. Add the usual female company or the 'mboys' etc doubles that amount to 3200 bob for just one day of phombe. Throw in some nyam chom at 600 bob and you are at 3800. That's an extra 3000 bob 'attributable to the car'. If you drink twice in a week thats 6000 bob 'car induced damage' or 24,000 a month or 288,000 bob a year extra for your pub bill.

A car will also make you to move house since you don't want to park your newly imported 1m corolla in some parts of Eastlando or in Uthiru etc where it might be stolen in no time. Thus instead of paying 20,000 rent in some 'perceived car unsafe area' areas, you will end up paying 40,000 in a 'car safe neighbourhood'. That's a total of 240,000 bob additional rent per year due to the car.

Summing up the above figures, a car will add 456,000 bob to your annual transport cost, 288,000 to your phombe/entertainment bill and 240,000 to your housing bill. That's a total of 984,000 bob a year. Imagine if this amount was used to invest in income generating assets instead of the car?