Everyone wants to be the next millionaire investor.
Even while drowning in debt.
Today, let me whisper some hard sense into your ears.
Pause. Breathe.
And let’s logically dissect this before you make a costly move.
I know investing sounds exciting.
The shiny returns.
The success stories.
The fear of missing out.
Money Market Funds.
Fixed Income Funds.
Equities.
Stocks.
Special Funds.
Forex.
Cryptocurrencies.
But here’s the reality you keep avoiding:
You already have expensive debt quietly stealing your income, leaving you broke and financially paralyzed.
Let’s be practical.
You have:
- A Ksh 500,000 bank loan at 18%
- A Ksh 300,000 credit card at 21%
- A Ksh 700,000 SACCO loan at 12%
This doesn’t look good.
Those first two loans—the bank loan and the credit card—are financial disruptors.
They are draining your income every single month.
And here’s the uncomfortable truth:
There is no low- to medium-risk investment that can neutralize that kind of damage.
So stop pretending.
Your focus should be simple:
Forget investing for now.
Kill the high-interest debt first.
Here’s the Hard Truth
Stop chasing “average” investment returns while carrying high-risk, high-interest debt on your shoulders.
That is a zero-sum game.
You can never out-invest high-interest debt.
Let’s break it down.
If you owe Ksh 500,000 at 18%.
And instead of clearing it, you invest in a fund earning 11%, you are losing 7% every year.
If you had paid off the loan, you would have earned a guaranteed 7% return—risk-free.
That’s not opinion.
That’s math.
A Simple Decision Rule
Compare your loan interest rate with the average return of 91-, 182-, or 364-day Treasury Bills.
Most low-risk investments mirror these returns.
If your loan rate is higher, pay off the loan first.
That is the optimal use of your money.
Even strong performers like:
- Special funds averaging about 18%, or
- Fixed Income Funds that returned about 20% in strong years
Cannot beat a fixed debt costing you 20%+ with zero risk.
Rule of Thumb
If your loan rate is higher than your investment return, clear the loan first.
Now, what about a SACCO loan at 12% while you can invest in opportunities earning 18%+?
Different story.
In that case, you’re effectively making a 6% spread.
That’s reasonable.
So:
- Keep servicing the loan responsibly
- Invest selectively
- Ensure capital preservation
But high-interest, unproductive debt?
Clear it immediately.
Because once your income is free, investing becomes easy—and powerful.
Always Remember
Your income is your greatest wealth-building tool.
Free it.
Protect it.
Then multiply it.
Now tell me—
Does this make sense to you?
Now, WhatsApp me “SESSION” and I’ll show you how to structure your debt and invest in the right opportunities.
Alex Mwangi
WhatsApp: 0703472299
