There’s a tension in every personal finance decision, the quiet tug-of-war between wanting access to your money (liquidity) and wanting it to grow (returns). You might want to invest more or save aggressively, but can you afford to wait for that money to grow?
At the core of this is a simple truth: the less liquid an investment is, the more return you usually expect. But life isn’t always as predictable. Sometimes, you need your money today. And that’s where most people get stuck.
Also read: How to Set Financial Boundaries with Friends and Family
Many people either keep all their money in easily accessible but low-yield accounts OR they chase high-return investments that are difficult to exit.
Neither extreme is ideal. The real power comes from finding your own balance.
One useful approach is to assign money to timeframes:
- Short-term money (0–1 year): This is your liquidity layer. It looks like your emergency fund, and lives in your money market funds or a SACCO saving. It earns modest returns but is easy to access.
- Medium-term money: This can afford to grow a little. You can explore index funds, fixed income funds, or SACCO shares, still relatively stable, but with better returns.
- Long-term money: This is where growth matters more than access. Shares, equity funds, real estate, and even alternative assets can sit here, because you won’t need them soon.
When you match your money to time instead of chasing returns blindly, you avoid the trap of having all your funds tied up or all your money doing nothing.
Take a parent saving for school fees due in January. If they put that money into land in June, they might get a good deal, but unless they can resell or borrow against it in time, it becomes a crisis come January. On the flip side, if they leave it in a current account for 6 months, they earn nothing.
The parent should turn to a money market fund or bond fund offering growth, some flexibility, and peace of mind.
Your financial decisions don’t have to be on polar ends like “maximize returns” or “play it safe.” Sometimes, the smartest move is to stay liquid in the short term so you can stay invested long term. That’s what many portfolios miss a layer that allows you to wait out volatility, emergencies, or opportunities.
Remembering to design for real life is what keeps your finances resilient.
#Liquidity #Growth
CEO & Co-Founder, Abojani Investment
Robert Ochieng is a visionary entrepreneur and the co-founder of Abojani Investment, a leading financial education platform in Kenya that has empowered over 20,000 Africans to embark on their investment journeys. As CEO, he has demonstrated an unwavering commitment to financial literacy, successfully demystifying money and investments and making them accessible and relevant to individuals from all walks of life.
Running Thriving Investment Communities
Robert’s influence extends well beyond Abojani Investment’s core offerings. He has actively fostered a sense of community by running investment forums and groups with a vast following of over 300,000 Africans. These communities provide a safe space for individuals to exchange ideas, share experiences, and support each other on their investment journeys.
Vision for the Future
As co-founder of Abojani Investment, Robert envisions a financially empowered Africa. He strives to expand the reach of his financial education initiatives, enabling millions more to gain the knowledge and confidence needed to achieve their financial goals. His vision is to create a society where every individual has the tools and understanding to build lasting wealth and prosperity.
Professional Background
Robert Ochieng is a highly accomplished CEO at the helm of Abojani Investment, an investment and advisory firm in Kenya. He is a seasoned professional with over 14 years of experience in IT, Finance, and leadership.
His career includes key roles at prominent institutions such as Equity Bank, Gulf African Bank, Guaranty Trust Bank (GTBank) and Airtel.
Robert’s expertise has also been sought after by the National Treasury for consultancy on planning and budgeting systems, showcasing his exceptional knowledge and skills in the field. Passionate about driving meaningful conversations and collaborations between academia, industry, and the public sector, Robert actively engages in research projects focusing on digital transformation within the financial services sector. With his visionary leadership and strategic insights, Robert Ochieng continues to make a significant impact in the business world.
