14/04/2026
1. HOW TO CALCULATE YOUR NET WORTH
Net Worth = What you OWN-What you OWE
Assets (What you OWN)
• Cash (bank, mobile money)
• Shares (MSE, global stocks)
• Businesses
• Land / Property
• Pension / Investments
• Vehicles (realistic resale value)
Liabilities (What you OWE)
• Loans (bank, SACCO, personal)
• Mortgages
• Credit/overdrafts
• Unpaid obligations
Example:
• Assets = K150 million
• Liabilities = K40 million
Net Worth = K110 million
Important Shift
Most people think:
“My salary = my wealth”
Wrong.
Your net worth is your real financial position.
2. UNDERSTANDING CASHFLOW FROM ASSETS
Not all assets create wealth.
The real question is:
Does this asset PAY YOU or COST YOU?
Cashflow Assets (GOOD)
These put money in your pocket monthly:
• Rental property
• Dividend-paying shares (NBS, NBM, FDH etc.)
• Businesses
• Treasury Bills / Bonds
Example:
• Shares paying dividends
• Rent collected monthly
These build freedom.
Consumption Assets (WEAK)
These take money from you:
• Personal house (no rent)
• Cars
• Lifestyle items
They are not bad but they must be controlled.
My Rule:
“Income first. Lifestyle later.”
3. HOW TO TRACK YOUR CASHFLOW
Ask yourself monthly:
• How much is coming from salary?
• How much is coming from assets?
Your goal:
Move from 100% salary → to increasing % from assets
Target Journey:
• Stage 1: 100% salary
• Stage 2: 80% salary / 20% assets
• Stage 3: 50% salary / 50% assets
• Stage 4: Assets fully cover your expenses
That’s financial independence
4. BEST ASSET SPLIT (DIVERSIFICATION)
There is no one-size-fits-all, but here is a practical African/ -friendly model:
MY PORTFOLIO MODEL
1. Income Assets (40%–50%)
• Dividend stocks (MSE)
• Treasury Bills / Bonds
• Rental property
Purpose: Cashflow
2. Growth Assets (20%–30%)
• Businesses
• Expansion investments
• Equity in high-growth sectors
Purpose: Wealth expansion
3. Stability / Protection (10%-20%)
• Cash reserves
• Emergency fund
• Insurance-backed savings
Purpose: Survival
4. Long-Term Assets (10%-20%)
• Land
• Pension funds
• Strategic property
Purpose: Legacy
5. SIMPLE PORTFOLIO RULE
Never be:
• 100% in cash
• 100% in business
• 100% in property
Always be:
Balanced. Structured. Intentional.
MY FINAL TRUTH
Most people:
• Earn money
• Spend money
• Repeat
Few people:
• Measure net worth
• Build cashflow assets Create systems
ONE LINE TO REMEMBER:
“Your net worth shows where you are.
Your cashflow shows where you are going.”
