a. Retirement Fund– My pastor once said that Nairobi is very horrible to old people. In the sense that, matatus are fast and do not wait for people to get on.
b. Emergency Fund– This is ideally a fund that you should use in case you ever lose your source of income. Say a fund that has at least six months rent in case you ever get fired.
c. Travel Fund/ Fun fund– This usually is for when you want to go to a random event in the month that’s coming up.
d. Asset replacement Fund- I had my phone stolen in Nairobi in June 2016. I literally did not have any money to get one. Right now, my microwave has only two working buttons left. Ideally this fund caters to emergencies for such cases, so it should have just enough to cover for such a loss, to be replenished after being utilised.
e. Investment Fund– This is cash you would put away in a fund that grows. Could be purchase of stock and equity, a treasury bill and treasury bonds. Money that grows.