One afternoon, a friend of mine, Vennessa, asked me some thought-provoking questions about how I view my income. It all started when I posted a screenshot of my PowerBI report dashboard, showing my visual board and current passive income. The idea of passive income has always intrigued me—especially after I’d done some research on how to make money without working too hard for it. Like many others, I have set goals for myself: to earn money while I sleep, to build streams of income that don’t require constant effort. I’ve been on this journey for a while, and I was genuinely excited when I crossed the Ksh 500 per month mark in passive income. Naturally, I shared this milestone on my status, and within hours, 25 people messaged me asking, “Show me your ways, master!” I couldn’t help but feel a bit proud. But then, two days later, I got a call from Miss V. Now, Miss V is a financial planner at one of the banks where I frequently go for loans. She’s familiar with my financial history, and that call threw me for a loop.
She was excited that I had taken a bold step by investing in money markets but expressed concern that my focus was too narrow. She calmly said, “You can’t put all your apples in one basket.” I was momentarily taken aback. Did she mean eggs? Well, whatever—it wasn’t the point. The message was clear: diversify. She then advised me to do more research and explore additional financial options. She also recommended that I empty my savings account, keeping only an emergency fund. Any extra funds should be moved into investments. And just like that, she hung up.
I paused, took a deep breath, and thought long and hard about what she had said. To be honest, at first, I didn’t want to hear it. It felt like a blow to my hard-earned progress. But the more I thought about it, the more I realized she had a point. As much as I’m excited about building multiple income streams, I still have room for improvement when it comes to my financial strategy. As I continue my financial research, I’ve been asking myself two key questions that, if answered, could take me a significant step closer to my goal of financial independence:
- How can I get a better return on my savings?
- What is the average interest rate earned on a basic savings account? While most traditional savings accounts offer minimal returns, I’m starting to consider other options like high-interest savings accounts, or maybe even short-term investments that could provide more substantial returns. It’s about making sure that the money I work so hard to save isn’t just sitting idle but is working for me.
- How can I raise financially responsible children?
- At what age should we start teaching kids about money, credit scores, and financial responsibility? My mindset around wealth isn’t just about me—it’s about ensuring that the next generation is equipped to handle their finances responsibly. Financial literacy needs to start young, especially when it comes to understanding credit scores and how late payments can affect financial health for years to come.
As Miss V’s advice continues to sink in, I realize that there’s so much more to learn about financial management than I initially thought. The journey to financial independence is about much more than passive income; it’s about making smarter choices with the money you already have, educating yourself on new avenues for growth, and taking a long-term, strategic approach to building wealth. So, while it’s great to have goals and milestones, the true success lies in continuously evolving and learning. It’s not just about earning more—it’s about being smarter with what you earn, and building a solid foundation for the future, both for yourself and those you care about.
What about you? Are you focusing solely on passive income, or have you thought about diversifying your approach? Let me know your thoughts and if you have any advice on how to achieve financial freedom! I keep researching and in my next article I will be breaking down the two questions I have been asking myself. Hope it opens up your minds or thoughts on financial strategy