LevelQue

I would rather have an KES 8 million bungalow, a KES 4 million car, and a KES 60 million investment portfolio comprising liquid assets such as ETFs, equities, government bonds, MMFs, unit trusts and REITs, generating KES 6 million annually, than own a KES 30 million mansion, a KES 10 million car and a KES 20 million portfolio generating just KES 2 million annually. I value liquidity, financial freedom and the experiences that money can offer more than material possessions. Travelling, road trips, vacations, eating out and simply enjoying life without financial pressure mean far more to me than having expensive things to show off. I understand why Warren Buffett, despite being worth billions, has remained in the modest house he purchased in the 1950s. At some point, you realise that accumulating material possessions does not necessarily translate into greater happiness or satisfaction. At my current level of financial exposure, upgrading to a bigger house would add very little value to my life. It would probably be more about impressing people than improving my actual quality of life. My philosophy is simple: build assets that generate income, maintain liquidity, buy what you genuinely need, and use your money to experience life. I would rather be wealthy in financial freedom and experiences than rich in material possessions.Because at the end in your death bed, experiences will matter more than unnecessary material possessions.

Here is why you should prioritize income-generating assets before fixed, non-income-generating assets. You can own a KES 15M home and a KES 5M car and still struggle financially, living paycheck to paycheck while relying on debt to sustain your lifestyle. Imagine Person A earns KES 200,000 monthly but spends KES 190,000. They own a KES 15M home and a KES 5M car, but have no income-generating financial assets. Their lifestyle depends almost entirely on their next paycheck. Now consider Person B, who owns a KES 3M home and a KES 1M car, with KES 10M invested in government bonds generating approximately KES 100,000 monthly. Their monthly expenses are just KES 80,000. On paper, Person A has a net worth of KES 20M, while Person B has KES 14M. But who enjoys greater financial security?Person B. Person A earns KES 200,000 but has only KES 10,000 left each month before any unexpected expenses. Lose that paycheck, and their financial stability could quickly unravel.But on the eyes of the public Person A is wealth while person B is suffering. Person B's investments generate KES 100,000 monthly against expenses of KES 80,000. Their portfolio covers their living costs and leaves a KES 20,000 monthly surplus, even without a salary, assuming the investment income remains stable. This illustrates a fundamental investment principle: wealth accumulation and financial freedom are not the same thing. Your net worth is more than a number on a spreadsheet. Its composition matters. A substantial portion of your wealth tied up in your primary residence, personal car, and other non-income-generating assets may increase your net worth without providing the cash flow needed to sustain your lifestyle. As you build wealth, prioritize assets that generate income, such as government bonds, dividend-paying stocks, rental properties, and other productive investments. These assets can help you cover your expenses, build financial resilience, and gradually reduce your dependence on employment. You can always upgrade your house or buy a more expensive car later. But building a portfolio that pays your bills gives you something far more valuable: the freedom to live on your own terms. The ultimate goal is not just to own valuable things. It is to own enough productive assets that you no longer have to work to afford the things you need.