Wealth that can’t survive one unexpected hit isn’t wealth- it’s theatre. Alfred Gachaga, the Founder of GRC Apex, writes.

When I was a young man, full of ambition and reeking of cheap cologne, I thought making money would feel as glamorous as it looked on TV. And guess what? It does feel amazing. Making money is fun. Addictive, even. 

But here’s the truth nobody glamorizes: keeping it is the real grown-up game. And when you think you’ve cracked that, a third, sneakier trap creeps in- believing you’re wealthy when you’re not.

It’s a story many of us know too well. A plot in Kitengela. Two Airbnbs in Syokimau. A full tank in your car. Even a few Safaricom shares. On paper, you’re rich. 

But in real life? One emergency, one late salary, or one school invoice too many- and suddenly your Netflix subscription goes dark.

As the wise Warren Buffett once said: “You only know who’s been swimming naked when the tide goes out.” And in Kenya, the tide seems to go out at the worst possible time.

That flashy lifestyle? Fragile. The soft life? Easily postponed.Your “savings”? Turns out it was just float in your Fuliza.

This is why I harp on about liquidity. Because wealth that can’t survive one unexpected hit isn’t wealth- it’s theatre.

“Asset-Rich” Can Still Mean Broke

Owning assets is great. But if those assets can’t be accessed, sold quickly, or used to generate cash, then they’re just decoration. 

You’ve probably heard the phrase: “Asset-rich, cash-poor.” That’s the guy with four rental units but no rent this month. The land in Kitengela he can’t offload until 2031. Or the diaspora worker with a stunning 2-bedroom high-ceiling, city view, apartment in Kilimani… that’s never seen a tenant. 

The solution? Maintain liquidity. Keep part of your portfolio in easy-to-access instruments such as money market funds, savings accounts, or short-term deposits. Because emergencies don’t care how many logbooks or title deeds you own. 

The real flex is margin. Could you lose your income for 6 months and still stay afloat? If you’re spending 100% of your pay check to maintain the appearance of success, you’re not rich. You’re just renting the lifestyle.

Follow the 50/30/20 rule:

And no, brunch is not a “need.” (Fight me.)

Know Your Net Worth, Not Just Your Salary

You earn 500K a month? Amazing. But what are you actually worth? 

The formula is simple:

Net worth = Assets – Liabilities

Sounds easy, until you realise you’ve been giving liabilities cute names like “home investment” or “my baby” (yes, I’m talking about that Mercedes). Let’s break it down:

An asset puts money in your pocket. Every month. Without begging. Without drama.

Now let’s flip it. A liability takes money out of your pocket. Whether loudly (like that car insurance) or silently (like opportunity cost).

And don’t get me started on your credit card. That’s a liability on steroids. 

So next time someone flexes about “owning assets,” ask: “How much do those assets pay you monthly?” Watch the confusion start to bubble. Save yourself and do an annual net worth audit. Use a spreadsheet or AI. Be honest. If your lifestyle is rising but your net worth is shrinking, you’re not building wealth- you’re burning it with scented candles.