A while ago, Mike — 36 years old, a father of one — reached out for help creating a solid financial plan that would cater to both his present life and future goals.
This came right after a major salary jump — from Ksh 120K to Ksh 200K.
When we started, Mike had no real system. He was winging it. He had a “mental budget,” allocating money across different needs, yet every month ended in a deficit.
He admitted something powerful: “If I don’t start giving my money the attention it deserves, I’ll soon start borrowing to fund my lifestyle.”
He also realized he had done little for retirement, hadn’t set up an education plan for his child, and his family was financially exposed in case of any tragedy.
So, here’s what we did.
Step 1: Secured the 4 Critical Foundations
1. Retirement Plan
We opened a Personal Pension Fund and committed Ksh 15,000 monthly. At a projected 10% net return, Mike will have accumulated Ksh 19.5 million in the next 25 years.
2. Education Plan
We opened a Cash Trust Fund and started saving Ksh 12,000 monthly for his child’s education. At 11% net return, he’ll accumulate approximately Ksh 2.2 million in 10 years.
3. Whole Life Insurance Policy
He took a Whole Life Insurance Cover for Ksh 10,000 per month, covering Ksh 13.5M Sum Assured, Ksh 3M Critical Illness, and Ksh 3M Accidental Disability. This guarantees his family’s stability if anything happens to him.
4. Financial Freedom Fund
We set up a Wealth Growth Fund — his future income generator. He saves Ksh 30,000 monthly at a 15% net return, targeting Ksh 19.6M in 15 years. That’s enough to earn him Ksh 164,000 monthly passive income without touching the principal.
Step 2: Planned for Predictable Future Expenses
We set aside Ksh 9,000 monthly into a Sinking Fund for predictable expenses — holidays, home upgrades, and family events.
We used the Arvocap Money Market Fund for this, allowing him to create different goal-based wallets and lock them until due.
Step 3: Reviewed His Existing Benefits
You might wonder, “What about medical insurance?”
Luckily, Mike’s employer already provides comprehensive cover for him and his family — so we didn’t duplicate that cost.
Step 4: Allocated the Remaining to Lifestyle and Comfort
Once his essentials and future goals were secured, we allocated the remaining balance to lifestyle — food, rent, leisure, and personal comfort — ensuring his present life still feels rewarding.
The Result: A Complete Financial System
We built a system that caters to Mike’s now and future. We executed the 7 Pillars of a Solid Financial Foundation — from protection and planning to wealth creation.
Now, as his income grows, all Mike needs to do is scale his savings and investments proportionally, explore higher-yield assets, and stay consistent.
Because wealth isn’t built through luck. It’s built through structure, systems, and discipline.
Do first things first. Then scale.
So, what do you think — did we miss something? What else would you add to make this plan even stronger?
