Tuesday, August 9, 2022

Terryanne Chebet: Keep your rent below a quarter of your gross income

Terryanne Chebet Net Worth: BY Terryanne Chebet: At the age of 19 I convinced my mother to give me some money to purchase second hand clothes for sale. I wasn’t serious about business though; I was just a girl bored to death of staying home after KCSE. I also enjoyed the energy of open air markets, beautiful clothes and the great bargains that came with market days in my rural home in Kitale.

So, once a week I would go to the best of the markets, which was in Kimilili, and I would look for what they call ‘camera’ jeans and camisole tops. I would get them for dirt cheap, wash and rinse them in fabric softener, iron and package them, then sell to my mother’s and my friends for a good profit. A pair of jeans cost around Sh100 and I’d sell the same for Sh300 or thereabout.

Kings Prism Tower: The modern office space nobody wants to rent

My market days were however cut short when I moved to Nairobi for college. As soon as I landed in the city I started acting, singing and performing poetry. I made a little money from these for my transport, lunch and a bit of shopping. Back then my style was pretty basic — jeans, T-shirts and sneakers, and I loved them. They were cheap too.

I realise now that I was never really a spendthrift. I credit that to my humble upbringing in the village which taught me to treat money with the respect it deserves from an early age. Handling what little money I had at a young age taught me much about spending wisely and about avoiding pegging my life to a salary.

Chris Kirubi Biography: The life and business profile of the billionaire

As I have matured in my career and in business, I have learnt some incredible lessons – some by burning my fingers, and others through advice from my mentors. My work and interactions with finance experts have instilled in me the need to plan, invest and save wisely. I now own two businesses, Scarlet Digital which is a communications firm and Keyara Organics, a skin and hair care line, which I both bootstrapped to set up with absolutely no loans from the bank or anywhere else. Here are some of the rules that I use to manage my personal finances.

I always get a bargain: I like fine things; I love art and vintage pieces which I always get for a bargain. Whether it is a painting or a vintage leather armchair or silverware for my kitchen, I smell sales from a mile away, and have even got deals at 50 per cent off the original prices. My recent buy was pyjamas from a local store which I got for 30 per cent off. I also take advantage of Easter & Christmas offers at supermarkets.

Revealed: Moi ‘died’ 14 times before his actual death

I try to pay my bills at least a month in advance: The pressure that comes with bills is substantially reduced when you pay beforehand; it helps you plan better and instills discipline in payment of bills.

Pay your children’s fees each month. A friend of mine once told me that the best way to manage school fees payments is to divide the school fees into monthly payments, whether schools are closed or open. Talk to the school accounts office and set up a standing order.

Use a credit card only when you must. I got my first credit card when I was earning Sh.25,000 a month. I was young and excited. It did not end well! I got rid of the card after paying back about twice my salary. I had learnt my lesson. I still have a credit card but only use it when I really must, for overseas transactions and travel. I also set a limit so that I can manage my payments easily.

I keep my rent at below 25 per cent of my gross income: I was once advised to always keep my rent below 30 per cent of my gross income; it allows you disposable income which you can use to invest.

If I must take a loan, my Sacco is the first priority. Saccos generally offer loans at lower interest rates than banks. I usually use my Sacco savings to take out a loan, but also use it as a source of emergency funds. When I take a loan from the Sacco, I always pay above the monthly requirement to reduce the time of payment. This also teaches me to be frugal.

When I get some extra cash I always put it into an investment. Sometimes we get money from a side hustle or a consultancy job that we were not really expecting; invest it into something that can give you good returns, you could put it in stocks or bonds. I usually divert mine to my businesses.

I treat myself! I’m not the bags and shoes kind of girl, but I splurge on vintage and luxury home décor as well as good jewellery, so once in a while I treat myself to something amazing which I know will last a lifetime and can be sold off for a handsome price.

Give. I strongly believe in the scripture that says “Give and it will come back to you in good measure, pressed down, shaken together and running over.” When God gives you, he expects you to also give to those less fortunate than yourself. Terryanne Chebet Net Worth. Terryanne Chebet Net Worth.

Did you love the story? You can also share YOUR story and get it published on Bizna Click here to get started.

Connect With Us




Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.


error: Content is protected !!